On 31 March 2026, the Financial Ombudsman Service (FOS) published its 2026/27 Plans and Budget.
Key points in the 2026/27 Plans and Budget include:
- The year ahead will see the FOS focus on delivering a service which is quicker, clearer and easier to use as it leverages new digital tools to reduce friction in the customer journey and to allow caseworkers to direct their time and expertise where it is needed most.
- The FOS notes that after a period of significant demand, its case volumes are stabilising. It expects to receive 199,000 new complaints in 2026/27, down from 210,000 in 2025/26. This is due to it receiving fewer motor finance commission cases and fewer complaints from professional representatives since the implementation of the charging regime changes with better evidenced cases coming through.
- The FOS has held its case fees and levies flat for two years at the significantly reduced 2024/25 levels. However, it believes that this is no longer sustainable as it responds to inflationary challenges, reduced reserves and the cost of implementing reforms to its service. It is therefore increasing its case fee and levy. The compulsory jurisdiction levy will be £86m and respondent firms will be charged £680 per case. Where a case is brought by a professional representative and the case is found in favour of the consumer, the professional representative will be charged £80. Where the case is found in favour of the firm, the professional representative will be charged £260 a case and the firm’s case fee will reduce to £500.
- The FOS is implementing a number of billing simplification changes, which will also provide the mechanism to allow it to introduce differentiated case fees in the future. This includes changing the free case allowance to a monetary value of £2,000 for both respondent firms and professional representatives and expanding quarterly billing in advance to more firms.