Consumers are the “elephant in the room” in the client account debate with an “overwhelming majority” saying they do not want their lawyers to keep the interest on client money, according to the latest Legal Services Consumer Panel Tracker Survey.
Over half of respondents (52%) said clients should receive the interest and 22% said it should fund free legal services for those who cannot afford them. Only 4% thought lawyers should retain the interest, with the remainder not having strong feelings either way.
The Legal Services Consumer Panel Tracker Survey 2026 surveys how consumers are using legal services and revealed a high awareness of client account amongst consumers, with three quarters aware lawyers could hold client money.
The LSCP is calling on regulators to “commission comprehensive research on the interest consumers receive as it works to safeguard client money”, adding it is important to understand whether consumers accurately understand what is happening to their interest. The calls come as the Ministry of Justice (MoJ) and regulators review the future of client account and interest.
The tracker measures sentiment around consumer satisfaction of legal services, with providers continuing to demonstrate year on year improvement. Nine in 10 consumers surveyed (90%) said they were satisfied with the service they received from their legal services provider, while 91% were satisfied with the outcome of their legal matter.
However, experiences were not consistent across all legal issues. Consumers using will writing and power of attorney services reported particularly positive service experiences (both 96%), while those using legal services relating to offences or criminal charges reported lower levels of service satisfaction (78%) and confidence.
Consumers who felt they had more choice over their provider reported substantially higher levels of satisfaction than those who felt they had little choice. Satisfaction with both service (73% vs. 90%) and outcomes (76% vs. 91%) remained markedly lower among consumers who felt unable to choose their provider.
Only half of consumers said they knew how to complain if they were dissatisfied with their legal service providers; those that did said concerns around provider reaction were the main barrier to complaining directly to the firm. In a “notable shift” from previous years, 40% of dissatisfied consumers reported taking no action.
Historically, raising a non-formal complaint with the service provider was one of the most common responses, indicating a greater tendency among dissatisfied consumers to take no further action following their experience with a legal services provider.
When it came to choosing the firm to represent them, 59% said they used a small local firm, an 8% increase on the previous year’s survey. A similar number to 2025 (13%) reported using a national brand with a local office, and 9% said they had used a large corporate firm, up 3% since 2025.
Reassuringly, trust in legal services remains high. When asked what would increase their trust, consumers continue to place particular importance on providers having specialist expertise (92%), being regulated (91%) and explaining things clearly (91%).
Tom Hayhoe, chair of the Legal Services Consumer Panel, said: “The consumer voice has been missing from the sector’s discussions around the treatment of the interest accrued on client money being held in lawyers’ client accounts and this has to change. Other professions do not retain such interest but treat it as belonging to the client. Dedicated consumer research would help regulators and the profession understand what consumer expectations are.
“Our Consumer Focused Regulation in Legal Services Report (2023) stressed the importance of understanding the consumer experience in the legal services market by investing in or collaborating on quality consumer research and engagement. Consumers must be a primary consideration in the policy making process.”
