corporate plan and 2008/09 budget, chapter 6

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corporate plan and 2008/09 budget

January 2008

2007/08 forecast

This chapter deals with our forecast for the current year, ending 31 March 2008.

new complaints

Our 2007/08 budget assumed that we would receive 80,000 new cases, a 15% decrease from the previous year.

Mortgage endowment complaints are likely to fall to under half the level expected, but this shortfall has been more than made up by the large number of complaints we received relating to charges for unauthorised bank overdrafts. Because of the test case in the High Court involving the OFT, complaints of this type are now on hold unless they involve financial difficulty or other considerations.

Our forecast is that we will receive 103,300 new complaints by the end of March 2008, 29% above the budget figure.

cases resolved

Our 2007/08 budget assumed that we would settle and close 106,500 cases. Our current forecast is that we will settle and close about 94,000 cases.

The shortfall is mainly due to lower than expected numbers of adjudicators available to close cases, and to lower productivity - caused partly by the increasing complexity of cases and partly as a result of implementing the restructuring of the service. There is significant uncertainty as to the levels of productivity in the later part of the year.

timeliness

Timeliness figures for 2007/08 are expected to be better than budgeted, assisted by the early settlement of a significant number of cases concerning overdraft charges.

unit cost

Our 2007/08 budget assumed that our unit cost (total costs excluding restructuring costs and financing charges, divided by the number of cases closures) would be £535. Our current forecast is a little higher at £571, reflecting the lower number of case closures.

opening work-in-progress* actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment cases 47,572 29,829 29,829 39,500
other cases 16,745 17,207 17,207 15,500
total 64,317 47,036 47,036 55,000
new cases actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment complaints 46,134 11,682 14,500 32,000
other cases 48,258 83,524 88,800 48,000
total 94,392 95,206 103,300 80,000
cases resolved actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment cases 63,877 24,124 31,000 54,000
other cases 47,796 53,837 63,000 52,500
total 111,673 77,961 94,000 106,500
closing work-in-progress** actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment cases 29,829 17,387 13,329 17,500
other cases 17,207 32,894 29,007 11,000
subtotal 47,036 50,281 42,336 28,500
overdraft charge cases on hold 0 14,000 14,000 0
total 47,036 64,281 56,336 28,500
work in hand (weeks) actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment cases 23.9 36.8 52.9 18.1
other cases 18.6 20.1 22.3 11.6
total 21.7 26.2 29.8 14.9
productivity actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment cases 4.5 2.6 2.8 4.7
other cases 3.6 5.3 4.5 4.0
total 4.1 4.0 3.7 4.3
% closed within 6 months actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
mortgage endowment cases 44 39 35 45
other cases 81 86 85 80
total 61 72 70 60
  actual
12 months
2006/07
actual
9 months
2007/08
forecast
12 months
2007/08
budget
12 months
2007/08
unit cost £484 n/a £571 £535

*'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

image of corporate plan and 2008/09 budget

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