Access to Justice Foundation to allocate unclaimed collective action funds to legal advice and reform
The Access to Justice Foundation (ATJF) is set to open a new funding round to distribute millions of pounds in unclaimed damages from collective action proceedings, in a move expected to inject fresh support into the UK’s underfunded legal advice sector.
The charity, which serves as the sole body authorised to receive and distribute undistributed damages from opt-out collective actions in the Competition Appeal Tribunal (CAT), will today outline its plans for spending the surge in income.
The latest boost follows the CAT’s decision to allocate £3.8million in unclaimed settlement funds from the case of Gutmann v South Western Trains. The ATJF is also expected to receive further undistributed damages arising from last week’s high-profile ruling in Kent v Apple, in which the tribunal found Apple had abused its dominant position in the app market.
The foundation said an open grants round will launch early next year to distribute the funds arising from the Gutmann case. It will focus on three priority areas: expanding access to free legal advice, supporting policy change to reduce systemic demand for advice, and improving public awareness of legal rights through mass engagement.
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Under the Consumer Rights Act 2015, the ATJF was designated as the sole recipient of undistributed damages from opt-out collective action cases handled by the CAT. These are cases where compensation is awarded on behalf of a defined class of claimants, but not all affected individuals come forward to claim their share. The unclaimed portion is transferred to the ATJF to fund activities that enhance access to justice.
In a statement, the foundation said its funding priorities are designed to ensure that “money arising from collective action cases continues to serve the public interest and to strengthen the rule of law”.
The first funding strand — support for access to legal advice — will focus on sustaining the long-term costs of providing free legal help at both local and national levels. “This will prioritise funding to ensure access to free legal advice for the people who need it the most,” the charity said.
The second strand will fund initiatives addressing the root causes that drive demand for legal advice, including research, policy work and systemic advocacy. “This work will be done in partnership with frontline and community organisations,” the foundation said, adding that it intends to use its position to “support evidence-led reforms that reduce legal need across society”.
The third strand will focus on public education and engagement, including awareness campaigns and digital initiatives to help people understand their rights and responsibilities. The foundation plans to use its existing advice networks and grantee organisations to “encourage better understanding of legal rights” and develop data-driven insights into areas where unmet need is greatest.
Each area will be prioritised based on the specific circumstances of the relevant case and where impact can be maximised. “We want these funds to reach the people and organisations where they will make the biggest difference,” the ATJF said.
The foundation, established in 2008 by the Law Society, the Bar Council and other legal bodies, plays a central role in distributing dormant and unclaimed funds for the benefit of the justice sector. In 2024, it awarded £34.8million in multi-year grants to support free legal advice services and pro bono initiatives across the UK.
The latest allocation marks one of the first instances of significant funds being channelled to the foundation through the collective action mechanism since its introduction under the 2015 Act. Legal observers say it demonstrates the growing financial and social impact of the UK’s collective redress regime, which allows individuals to seek compensation collectively where companies have caused widespread harm.
The ATJF said it intends to publish detailed guidance for prospective applicants ahead of the funding round’s launch in early 2026. Organisations working in legal advice, policy development, or public legal education will be eligible to apply.
With the volume of collective actions rising — and major cases such as Kent v Apple generating unprecedented awards — the foundation’s expanded funding programme is expected to become an increasingly important source of support for access-to-justice work across the country.