The Financial Ombudsman Service (FOS) has set an operational target to resolve more than 80% of complaints within six months in 2026/27, as it continues to focus on efficiency and reducing its case backlog.
The target forms part of the Service’s consultation on its Plans and Budget for the next financial year, during which it expects to receive 188,000 new cases.
This is down from an expected 205,000 cases in 2025/26 and more than 305,000 cases received in 2024/25, before the introduction of a charging regime for professional representatives.
Despite the lower forecast intake, the FOS plans to resolve 245,000 cases in 2026/27 as it works through existing stock levels.
Around 60,000 related to motor finance commission complaints
Around 60,000 of these are expected to be motor finance commission complaints, with the remainder relating to areas such as insurance, banking, investments and pensions.
The Service said the reduction in new complaints reflects measures it has introduced to manage demand, including the introduction of case fees for professional representatives.
The FOS expects Buy Now Pay Later, classed as Deferred Payment Credit, to come within its jurisdiction from July 2026.
It anticipates receiving around 2,000 complaints in the second half of 2026/27, covering issues such as administration, credit file disputes and perceived irresponsible lending.
The FOS said it continues to work closely with the Financial Conduct Authority (FCA) and HM Treasury on reforms to the redress system, aimed at helping firms resolve issues earlier and bringing greater consistency and predictability for businesses and consumers.
As part of its ongoing reforms, the Service changed the interest applied to some awards from January 1, 2026 to better reflect market conditions and has introduced an interest calculator to help firms adapt to the change.
Jenny Simmonds, interim chief executive at the Financial Ombudsman Service, 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 which 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.”
The consultation also proposes increasing the standard case fee from £650 to £680 and setting the compulsory levy at £86m, reflecting inflationary pressures and the scale of reforms being delivered.
Charges for professional representatives would rise from £250 to £260, with the credit for cases upheld increasing from £175 to £180.
The consultation on the FOS’s Plans and Budget for 2026/27 is open until January 21.