This chapter deals with the current year – 2005/06. By the end of March 2006 we expect the overall position to be very close to the figures we forecast in our budget for the year.
new complaints
Our 2005/06 budget assumed we would receive 115,000 new cases – a 4% increase on the previous year. This reflected a small increase in complaints about mortgage endowments and other products, as well as the extension of our remit to cover mortgage and general insurance intermediaries.
Our current forecast is that we will receive 70,000 mortgage endowment cases and 45,000 other cases, in line with the budget. Mortgage endowment complaint numbers appear to be stabilising for the time being. Investment complaints have reduced (partly reflecting improved stock markets and also a tailing off of ‘splits’ complaints). This reduction has been offset by a general increase in banking and insurance cases.
cases resolved
Our 2005/06 budget assumed we would resolve and close 116,000 cases. Our current forecast is that we will resolve and close 116,000 cases, in line with our budget. This represents a 28% increase on the previous year, reflecting the investment we have made in increasing our productive capacity – in particular by recruiting additional adjudicators.
productivity
Our 2005/06 budget assumed that productivity would fall marginally, as many cases became more complex and were vigorously contested by the parties. Our current forecast is in line with the budget.
timeliness
In framing our budget for 2005/06 we decided that – because of the nature and scale of the issues involved – we would set different standards of service for mortgage endowment cases than for other cases. This is reflected in the forecast in the table below.
As explained in the next chapter – complaint trends – we expect to reduce the number of outstanding cases. But timeliness is currently measured when cases are closed. So closing some older cases, particularly in complex areas such as ‘splits’ and Equitable Life, will sometimes make our overall timeliness look worse.
unit cost
Our 2005/06 budget assumed that our unit cost (total costs, less financing, divided by the number of cases resolved) would fall to £456. Our current forecast is in line with the budget.
|
actual
12 months
2004/05
|
actual
9 months
2005/06
|
forecast
12 months
2005/06
|
budget
12 months
2005/06
|
opening work-in-progress* |
|
|
|
|
mortgage endowment complaints |
26,056 |
46,924 |
46,924 |
44,056 |
other complaints |
20,645 |
19,832 |
19,832 |
17,645 |
 |
|
total |
46,701 |
66,756 |
66,756 |
61,701 |
|
|
|
|
|
new complaints |
|
|
|
|
mortgage endowment complaints |
69,737 |
50,108 |
70,000 |
70,000 |
other complaints |
41,226 |
32,122 |
45,000 |
45,000 |
|
|
total |
110,963 |
82,230 |
115,000 |
115,000 |
|
|
|
|
|
cases resolved |
|
|
|
|
mortgage endowment complaints |
48,869 |
51,457 |
69,000 |
69,000 |
other complaints |
42,039 |
34,490 |
47,000 |
47,000 |
|
|
total |
90,908 |
85,947 |
116,000 |
116,000 |
|
|
|
|
|
closing work-in-progress** |
|
|
|
|
mortgage endowment complaints |
46,924 |
45,575 |
47,924 |
45,056 |
other complaints |
19,832 |
17,464 |
17,832 |
15,645 |
|
|
total |
66,756 |
63,039 |
65,756 |
60,701 |
|
|
|
|
|
work in hand (weeks) |
|
|
|
|
mortgage endowment complaints |
31.2 |
34.1 |
36.6 |
34.0 |
other complaints |
24.3 |
18.9 |
17.3 |
17.3 |
|
|
total |
30.7 |
28.1 |
27.8 |
27.0 |
|
|
|
|
|
productivity |
|
|
|
|
mortgage endowment complaints |
6.1 |
5.4 |
5.3 |
5.3 |
other complaints |
3.4 |
3.4 |
3.4 |
3.4 |
|
|
total |
4.4 |
4.3 |
4.3 |
4.3 |
|
|
|
|
|
closed within 6 months |
|
|
|
|
mortgage endowment complaints |
55% |
50% |
40% |
20% |
other complaints |
72% |
73% |
70% |
80% |
|
|
total |
64% |
59% |
50% |
45% |
|
|
|
|
|
unit cost |
£496 |
n/a |
£457 |
£456 |
* 'opening work-in-progress' means the number of cases open at the beginning of the year
** 'closing work-in-progress' means the number of cases open at the end of the year
|