Ombudsman Service Sets Plans for Service Delivery Reforms for Year Ahead

UK Financial Ombudsman Service News

Published March 31st, 2026

Detected March 31st, 2026

Summary

The Financial Ombudsman Service (FOS) has published its 2026/27 Plans and Budget, outlining its most significant operational transformation in 25 years. Working with the FCA and government, the FOS will focus on delivering quicker, clearer, and easier service through new digital tools and process improvements. An FCA consultation (CP26-9) has been issued to update FOS processes and improve transparency for customers.

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What changed

The Financial Ombudsman Service announced its 2026/27 annual plan, describing an ambitious transformation programme to modernise its operations since inception 25 years ago. The FOS is collaborating with the Financial Conduct Authority (FCA) and the UK government to update processes and improve transparency. Key priorities include leveraging digital tools to reduce friction in the customer journey and enabling caseworkers to focus expertise where most needed. The FCA has published consultation CP26-9 setting out measures to update FOS processes.

Financial services firms and consumers who may use the ombudsman service should note these upcoming changes. While this plan does not create immediate compliance obligations, regulated firms should monitor FCA consultation CP26-9 for any process changes that could affect how complaints are handled. The transformation aims to create a quicker and more informal dispute resolution process as an alternative to court proceedings.

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Financial Ombudsman Service sets out its plans for service delivery and reforms for the year ahead

31 March 2026

Press release Plans and budget

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Today we have published our Plans and Budget for the 2026/27 financial year where we have set out our priorities for the next 12 months.

We are currently undergoing the biggest transformation to our operations since our inception 25 years ago. Working with the Financial Conduct Authority (FCA) and the government, we are driving forward an ambitious programme of changes to allow us to better focus on our core purpose as a quick and informal alternative to the courts. Earlier this month, a new consultation set out measures to update our processes and improve transparency for our customers.

The year ahead will see us focus on delivering a service which is quicker, clearer and easier to use as we leverage 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.

Following a period of significant demand, our case volumes are stabilising, with us expecting to receive 199,000 new complaints in 2026/27. This is down from nearly 306,000 in 2024/25, and from around 210,000 in 2025/26. This is due to fewer motor finance commission cases and fewer complaints from professional representatives.

We plan to resolve 266,500 cases over the course of the year – a mix of new cases and those we have already received. As a demand-led organisation, our case numbers and resolutions can fluctuate.

Jenny Simmonds, Interim Chief Executive, said:

This financial year will be a crucial one for the Financial Ombudsman Service which will help shape the organisation for years to come.

We never forget that behind every case is a consumer and a business looking for an answer, so we are delivering improvements and efficiencies to ensure we remain fit for purpose and fair to all parties.

We look forward to continuing to work with government, regulators and stakeholders to deliver a strong, impartial service which supports public confidence in financial services.
Whilst our case fees and levies had been held flat for two years at significantly reduced levels, we announced today that an increase was needed as we respond to inflationary challenges, reduced reserves, and the cost of implementing the biggest reforms to our service since we were created. The costs for firms will still represent a significant saving on 2023/24 levels.

From 1 April, the compulsory levy will be £86m. Respondent firms will be charged £680 per case, and professional representatives will be charged £80 for cases they refer which are found in favour of the consumer they represent. For cases which are found in favour of the firm, professional representatives will pay £260 and the firm’s case fee will reduce to £500. These charges are unchanged from those proposed in the Plans and Budget consultation.

Continuous improvement and leveraging core platform capabilities remain key priorities for the year ahead, as is the ability to efficiently scale up or down casework resources to enable us to resolve complaints in a timely manner.

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