The Court Funds (Amendment) Rules 2026, S.I. 2026/593, were made on 3 June 2026, laid before Parliament on 5 June 2026 and will come into force on 29 June 2026. The text published on legislation.gov.uk states that the instrument was made to correct a defect in S.I. 2025/1275 and is being issued free of charge to all known recipients of that earlier instrument. The Rules were made by the Lord Chancellor under section 38 of the Administration of Justice Act 1982, with the concurrence of the Treasury, and extend to England and Wales. They apply across the Senior Courts, County Court and Family Court because the Court Funds Rules 2011 govern money held in court by the Accountant General.
In practical terms, this is a technical correction rather than a new policy programme. The explanatory note states that the 2026 instrument amends the Court Funds Rules 2011 in two places: first, to tighten the wording on who may use the special interest-bearing account; second, to replace rule 27 after drafting errors were inserted by the Court Funds (Amendment) Rules 2025. That matters because court funds rules are operational rules. If the wording is defective, the problem is not merely presentational. It can create uncertainty for court staff, practitioners and parties about whether money may be invested or paid out, and what evidence is needed before payment is released.
The first amendment is narrow but important. New rule 11(1A) states that money must not be invested in a special account unless it is money to which a child or a person who lacks capacity is entitled. In plain English, the 2026 Rules draw a firm boundary around the special account. According to the explanatory note on legislation.gov.uk, the change is intended to make clear that the special account is for funds belonging only to children and persons who lack capacity, rather than for wider categories of money held in court.
The second amendment replaces rule 27 in full. The substituted text applies where payment is to be made to a claimant from money in court under Civil Procedure Rules rule 37.3 and where the permission of the court is not required. The revised wording then sets out what the Accountant General must receive before releasing money after a defendant has paid funds into court and a Part 36 offer is later accepted. Where rule 22A(1) does not apply, the requirement is a written request from the claimant and written confirmation from the defendant that all or part of the fund may be used to satisfy the offer. Where rule 22A(1) does apply, those same steps may be provided electronically.
The instrument also restores the remainder of rule 27 so that there is no doubt about points that were meant to stay in place. Any accrued interest left in court after a payment under paragraph (2) or rule 28(2) must be paid to the defendant. Where more than one defendant is sued jointly, payment cannot be made if not all defendants have paid money into court unless the claimant has discontinued against the non-paying defendants and the required notice and consents have been supplied. That restoration is one of the main correction points in the instrument. The explanatory note says the 2025 amendment created ambiguity over whether the balance of rule 27 had been omitted. The 2026 drafting removes that uncertainty, renumbers the provisions for clarity, and otherwise preserves the substance of the earlier rule.
For litigators and court users, the immediate effect is procedural clarity rather than a change in entitlement. Claimants seeking payment out under CPR rule 37.3 will need to ensure the request is made through the correct written or electronic route, while defendants will need to provide explicit confirmation about the use of the fund in court. In joint-defendant cases, settlement paperwork will also need to be complete before money can be released. For those handling damages or settlements involving children or persons who lack capacity, the special-account amendment provides a clearer compliance rule. It reduces room for dispute about which monies may be placed in that account and supports a more consistent approach across court administration.
The Ministry of Justice has presented the instrument as low impact. The explanatory note states that no full impact assessment has been produced because no, or no significant, effect on the private, voluntary or public sectors is foreseen. Even so, correction instruments of this kind are not trivial. When court funds rules are unclear, payment timing, document handling and the treatment of interest can all become harder to administer. By addressing the defect before 29 June 2026, S.I. 2026/593 gives practitioners a cleaner rule set and reduces the risk of avoidable procedural dispute.