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Financial Ombudsman publishes plans and budget for 2021/22

Link(s): https://www.financial-ombudsman.org.uk/news-events/our-plans-and-budget-for-2021-22

Context

FOS has published its final plans and budget for 2021/22, following consultation in December 2020.

Key points to note

  • The document sets out that, in the year to the end of March 2021, despite the unprecedented impact of Covid-19, FOS is expected to have resolved more than 95% of the volume of cases originally planned in general casework.
  • However, the pandemic has also contributed to the substantial increase in the number of new complaints received in 2020/21 – forecast to be at least 45% higher than expected at the beginning of the 2020/21 financial year.
  • Plan – FOS confirms that it:
    • expects to receive 170,000 complaints. 160,000 in general casework, including 1,000 about CMCs and 1,300 from SMEs as well as 10,000 about PPI
    • expects to resolve 220,000 complaints. 200,000 in general casework, including 1,200 about CMCs and 1,300 from SMEs as well as 20,000 about PPI
  • Budget
    • the cost base will be £260m (£246m excluding one‑off costs)
    • the compulsory jurisdiction levy will be £96m
    • individual case fee will be £750
    • voluntary jurisdiction levy will raise £1m
    • businesses outside the group‑account fee arrangement will get 25 free cases
    • business groups that are members of the group‑account fee arrangement will get 50 free cases

Next actions

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