The Court Funds Office (CFO) holds approximately £2 billion of funds on behalf of approximately 16,000 Court of Protection clients. Funds paid into court are not held by the Bank of England. All funds deposited with CFO are transferred to the Court Funds Investment Account (CFIA). The CFIA is administered on behalf of the Commissioners for the Reduction of the National Debt by the UK Debt Management Office an Executive agency of HM Treasury.
The following interest rates have applied to funds held on behalf of Court of Protection clients over the last 10 years:
|From 1 August 1999||7|
|From 1 February 2002||6|
|From 1 February 2009||3|
|From 1 June 2009||1.5|
|From 1 July 2009||0.5|
It is not possible to predict what interest rates CFO will be able to pay on client funds in the future. Interest rates are set and regularly reviewed by the Lord Chancellor with the concurrence of the Treasury. In reviewing the rate paid the Lord Chancellor takes into account a number of factors including-the amount of interest received on funds against the amount of interest paid to clients, the level and mix of funds held by CFO and administration costs. Taking into account all of these factors the Lord Chancellor decides on the appropriate level of interest paid on funds held in court. The Lord Chancellor will be keeping the rates paid on the special account under review, and will make a direction to change the rate when necessary with the agreement of the Treasury.