Financial Ombudsman Service driving reform and delivering improvements as it sets out its plans for next year

Following a period of extraordinary demand, case volumes are decreasing as measures introduced this year to ensure complaints were better evidenced and ready to be investigated begin to take effect. We are also on track to meet the targets we set to reduce the time it takes to give answers on cases.

In plans published today, we said that we expect to receive 188,000 cases in 2026/27 across a range of financial products including bank accounts, credit cards and insurance. We are planning to resolve 245,000 cases as we work through our existing stock levels, 60,000 of which will be related to motor finance commission (MFC).

We also expect complaints about Buy Now Pay Later (Deferred Payment Credit) products to come into our jurisdiction in July 2026, meaning we are likely to start receiving complaints in the second half of 2026/27. Using insight from market leaders and its experience of new products, we expect to receive around 2,000 cases on issues including general administration, problems with credit files and perceived irresponsible lending.

We are working closely with the Financial Conduct Authority (FCA) and HM Treasury to deliver a series of reforms to the redress system to help firms identify and resolve issues before complaints escalate and bring consistency and predictability for businesses and consumers. The plans published today said we expect the majority of these changes to take place over the next two financial years.

Jenny Simmonds, Interim Chief Executive said: 

We are delivering a series of improvements to focus on our core purpose as a quick, informal and impartial alternative to the courts, now and in the future, helping to build confidence in financial services.

As we consult on our Plans and Budget for 2026/27, we want to lay the foundations for an agile, responsive and modern Financial Ombudsman which is fit for the future and has the confidence of consumers and financial businesses alike. The next year will be a crucial one for our service and we welcome views from stakeholders on our proposals.”

After holding our costs to businesses flat last year, we are consulting on proposals to increase our case fee to £680 and compulsory levy to £86m as we respond to inflationary challenges and delivers the biggest reforms to our service since we were created. The proposed costs for businesses still represent a significant saving on 2023/24 levels, as we continue to focus on efficiency savings. Charges for professional representatives would increase from £250 to £260, with the credit if the case is found in favour of the complainant increasing from £175 to £180.

We have also announced today that we will simplify our billing process for the next financial year by replacing the free case allowance with a monetary value of £2,000 for both respondent businesses and professional representatives. We are also introducing quarterly billing in advance for the largest businesses expected to account for the most cases. These changes follow a consultation on case fees which was conducted in the summer.

The consultation on our Plans and Budget 2026/27 is open until 21 January 2026.