Case fees applied to businesses where a complaint against them is under investigation by the FOS could increase from £650 to £680, a 4.6% rise tied to inflation and operational costs, if proposals go ahead.
For brokers handling complaints on behalf of consumers, the ombudsman is proposing to lift the fee by £10 to £260. If the case is found to be in the consumer’s favour, the credit received by the claims broker would rise from £175 to £180.
The ombudsman’s view on the compulsory jurisdiction levy – the annual amount all regulated firms must pay – is to apply a 23% rise, driving the annual fee up from £70m to £86m.
Despite the proposed increases, the charges would remain below 2023/24 levels, when case fees stood at £750 and the levy was £110m.
In its 2026/27 Plans and Budget consultation paper, the ombudsman wrote: “We had held our case fees and levies flat for two years at the significantly reduced 2024/25 levels.
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“However, it is no longer sustainable to continue to hold at these levels as we respond to inflationary challenges, and given our lower level of reserves, the need to manage a greater level of uncertainty and the cost of implementing the biggest reforms to our service since we were created. We are therefore consulting on a proposal to increase our income through an increase to the case fee and levy.”
Faster resolution
The FOS has also laid out its internal targets for complaint resolutions and its expectations for the levels of cases it expects to receive.
In 2025/26, the FOS anticipates receiving 205,000 cases, with expectations to receive 188,000 cases during the 2026/27 period.
It forecasts that during this period, it will resolve 245,000 cases – 60,000 of which are expected to be related to motor finance commission.
The ombudsman’s target for resolving cases is to settle 80% of complaints within six months.
Jenny Simmonds, the FOS’ interim chief executive, said: “The continuous delivery of changes and improvements to our service and the framework in which we operate will be a key focus next year.
“We are continuing to drive operational efficiencies while maintaining the quality of our service, ensuring that we have the resources in place to enable us to resolve complaints in a timely manner.
“We want to lay the foundations for an agile, responsive and modern Financial Ombudsman [that] 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.”
How to respond to the consultation
The consultation closes on 21 January. Firms wishing to respond can email consultations@financial‑ombudsman.org.uk.
The final plans and budget will be published in early April.
