FOS expects to resolve 20% more cases this year

The Financial Ombudsman Service (FOS) has announced that it expects to resolve 270,000 cases in 2025/26, a 20% increase from the previous year.

The FOS’ commitment comes despite recent surges in complaints, most notably the influx of cases related to motor finance commission. These account for nearly half of the current stock of around 190,000 cases and cannot be resolved due to ongoing legal and regulatory action.

Exceptional demand strains resources and underlines the need for reform around mass redress events. Collaborating closely with HM Treasury and the Financial Conduct Authority (FCA), FOS says that is embarking on a transformative journey to modernise both its service and the redress system. 

Jenny Simmonds, Interim CEO said “We never forget that behind each case are customers waiting for an answer. As we respond to the huge levels of demand we saw last year, we are continuing to drive forward our plans to transform and improve our service.

“We are increasing our capacity to resolve cases productively, building flexibility into our workforce to respond to reasonable changes in demand.”

FOS says that it is  are also taking steps to modernise its processes to ensure businesses and consumers benefit from a faster, more effective dispute resolution service. This includes improving case-handling efficiency, increasing workforce flexibility, and enhancing the use of digital tools to streamline processes.

FOS has also announced that case fees, currently at £650, will be reduced to £475 if the complaint is professionally represented and is closed as no change in outcome. The compulsory jurisdiction levy will remain at £70m for 2025/26, while the voluntary jurisdiction levy will remain at £600,000. The FOS forecasts that it will receive around 209,000 complaints in 2025/26, including bank accounts, credit cards and insurance – a 20% year-on-year increase.

James Dipple-Johnstone, Interim Chief Ombudsman said “Our decision to maintain current case fee levels and levies for businesses represents a saving of nearly £70m to industry compared to pricing in 2023/24.

“We will continue to share our insight with businesses to help them to better understand why complaints occur so they can resolve them earlier or stop them occurring in the future.”

The new financial year has also seen the FCA confirm that the maximum amount FOS can require a business to pay when we uphold a complaint is increasing. The limits are set by the FCA and are adjusted each year to keep pace with inflation, as measured by the Consumer Prices Index (CPI). For complaints referre from 1st April 2025, the award limit will increase to £445,000 for complaints about acts or omissions that occurred on or after 1st April 2019.