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financial ombudsman consults on plans and budget for the year ahead

14 December 2016

consultation opens on ombudsman's our plans and budget for 2017/2018

The Financial Ombudsman Service today publishes its proposed plans and budget for the next financial year (2017/2018) for public consultation - together with an update on numbers for the current financial year.

The plans and budget set out how next year (2017/2018) the ombudsman is planning to:

  • handle a record number of complaints about payment protection insurance (PPI);
  • tackle over 53,000 banking, 36,000 insurance and 13,000 investment complaints - similar levels to the previous year; and
  • continue to provide fair answers, but more quickly and effectively - reflecting the changing needs of the people and businesses who use our service.

The proposals to manage and fund this workload include:

  • freezing the case fee paid by business at £550 for the fifth year running - businesses pay a case fee only after their 25th case, which means 99% of businesses will continue to pay no case fee at all;
  • freezing our compulsory jurisdiction levy at £24.5m and funding three-quarters of our workload through the group-account charging arrangement that covers the eight largest businesses responsible for the most complaints; and
  • a proposed total operating income of £276.6m

We'd been preparing our plans based on the FCA's published timetable. On 9 December the FCA announced that it's still carefully considering the issues raised in its most recent consultation - and will make a further announcement in the first quarter of 2017. We don't yet know the impact this will have on how quickly we can resolve PPI complaints affected by Plevin - or on how many new PPI complaints we'll receive next year. We'll be discussing these issues with our stakeholders, including the FCA, as we consult on our plans over the next month.

Caroline Wayman, chief ombudsman, said;

"Like last year, we're planning for the next financial cycle at a time of ongoing uncertainty in the area with the most significant bearing on our work. As ever, we remain focused on giving quick and fair answers to individual problems, while ensuring we're in a position to respond effectively to future demand for our help.