Context
FOS has announced the publication of its 2026/27 Plans and Budget Consultation, stating that it is driving reform and delivering improvements as it sets out its plans for next year. The strategic plans include complaint trends, what FOS expects to see in the year ahead, and its aims for developing and resourcing its service.
Key points to note and next actions
- FOS is consulting on its Plans and Budget for the next financial year as it continues its once in a generation reform programme.
- FOS has set itself ambitious targets for case resolution and service improvement in the year ahead.
- Budget proposals will see case fees and levies rise for the first time in three years, but still remain lower than they were in 2023/24.
- Following a period of extraordinary demand, case volumes are decreasing as measures introduced this year to ensure complaints were better evidenced and ready to be investigated begin to take effect.
- FOS is on track to meet the targets it set to reduce the time it takes to give answers on cases.
- FOS expects to receive 188,000 cases in 2026/27 and estimates that it will resolve 245,000 cases as it works through its existing complaints, 60,000 of which will be related to motor finance commission.
- FOS also 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. FOS expects to receive around 2,000 cases on issues including general administration, problems with credit files and perceived irresponsible lending.
- FOS 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. 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.
- FOS has 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.