Financial Ombudsman Service sets ambitious targets for case resolution in 2025/26

• We expect to resolve 20% more cases than the previous financial year. 
• To ensure fairness and value for money, case fees for businesses remain frozen, and a new charging model for professional representatives has been introduced. 
• Plans to modernise the redress system aim to deliver faster resolutions and greater certainty for both businesses and consumers. 

In 2025/26, we expect to resolve 270,000 cases – representing a 20% increase compared to the previous year. 

This commitment comes despite recent surges in complaints, most notably the influx of cases related to motor finance commission. These account for nearly half of our 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), we are embarking on a transformative journey to modernise both our service and the wider redress system. The aim is clear – to ensure we can continue to resolve cases impartially and with minimal formality, and to prevent financial issues from escalating into widespread disputes, thereby reducing uncertainty for firms and enhancing outcomes for consumers.  

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.” 

We are also taking steps to modernise our 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. 

We are also committed to providing firms with better insight into complaint trends, helping them address the root causes of disputes and reducing the likelihood of cases escalating. By working collaboratively with industry, we aim to promote early resolution and improve confidence in the redress system. 

Despite the demand we have faced, we have today confirmed that we will maintain the significantly lower costs for respondent businesses which we introduced last year. Case fees will remain frozen at £650, and the reduced compulsory and voluntary jurisdiction levies will be maintained.   

We have also taken steps to make our fee model fairer as new charges for professional representatives came into force on 1 April 2025. The move also aims to encourage professional representatives to submit better-evidenced complaints, considering their merits more diligently before referring them. 

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 we 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 referred to us from 1 April 2025, the award limit will increase to £445,000 for complaints about acts or omissions that occurred on or after 1 April 2019.    

We anticipate receiving 209,000 complaints throughout the year across a range of financial issues, including bank accounts, credit cards and insurance. This is a slight increase compared to complaint levels seen in 2022/23 and 2023/24, but a significant drop on the 330,000 cases we predict we will have received over 2024/25 due to the impact of motor finance commission complaints. Full data for this period will be published in the summer. 

We remain focused on delivering fair and timely dispute resolution. By improving efficiency, sharing insight with businesses, and modernising the system, we aim to provide a balanced and effective redress framework that benefits both consumers and industry alike.