The Financial Ombudsman Service has said the continuous delivery of changes and improvements to its service will be a key focus for 2026/27 as it launched a consultation on its Plans and Budget.
The organisation has reported that, following a period of extraordinary demand, case volumes at the service are decreasing as measures introduced this year to ensure complaints were better-evidenced and ready to be investigated begin to take effect. The Ombudsman says it is also on track to meet the targets it set to reduce the time it takes to give answers on cases.
In plans published this week the Ombudsman said that it expects to receive 188,000 cases in 2026/27 across a range of financial products including bank accounts, credit cards and insurance. The service is planning to resolve 245,000 cases as it works through its existing stock levels, 60,000 of which will be related to motor finance commission (MFC).
The service has also said it expects complaints about Buy Now Pay Later (Deferred Payment Credit) products to come into its jurisdiction in July 2026, meaning it is likely to start receiving complaints in the second half of 2026/27. Using insight from market leaders and its experience of new products, the service said it expects to receive around 2,000 cases on issues including general administration, problems with credit files and perceived irresponsible lending.
The Financial Ombudsman is 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 the service expects the majority of these changes to take place over the next two financial years.
Jenny Simmonds, Interim Chief Executive at the Financial Ombudsman Service, 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 its costs to businesses flat last year, the Financial Ombudsman Service is consulting on proposals to increase its case fee to £680 and compulsory levy to £86m as it responds to inflationary challenges and delivers the biggest reforms to its service since it was created. The proposed costs for businesses still represent a significant saving on 2023/24 levels, as the Ombudsman continues 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.
The Ombudsman also announced today that it will simplify its 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. It is 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 the Financial Ombudsman Service’s Plans and Budget 2026/27 is open until 21 January 2026.
