The Financial Ombudsman Service (FOS) expects to resolve 270,000 cases in 2025/26, a 20% increase from the previous year.

The FOS’ 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.

The FOS has been collaborating with HM Treasury and the Financial Conduct Authority to modenise its service and the wider redress system.

The new financial year has seen the FCA confirm that the maximum amount the FOS can require a business to pay when it upholds 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.

For complaints referred to the FOS 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.

The FOS says it anticipates 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 the ombudsman predicts it will have received over 2024/25 due to the impact of motor finance commission complaints.

FOS interim chief ombudsman James Dipple-Johnstone says: “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.”