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FOS to slash budget 13%; levy frozen at £23m

The Financial Ombudsman Service is cutting its budget by 13 per cent in 2015/16 and will maintain the current industry levy at £23.3m.

A budget of £221m has been set for 2015/16, down from around £254m in the current financial year, while the overall compulsory levy for the financial services industry will be frozen.

For the second year running, the FOS will also freeze the standard case fee at £550 and will not charge a supplementary case fee for PPI complaints.

A total of 440,000 cases are forecast to be resolved within the current financial year, with a 12 per cent reduction expected in 2015/16, equating to around 388,000 cases. Of these, 250,000 are expected to be related to PPI, down from 320,000 forecast for 2014/15.

The service is expecting to receive around 1.35 million enquiries in the next financial year and plans to recruit 200 more case-handlers in 2015/16.

The FOS also says it will “shortly” be introducing a digital platform to allow customers to interact with the service through online forms and web-chats as well as via telephone and post.

FOS chief ombudsman and chief executive Caroline Wayman says: “We know that we have a number of challenges to meet. The extremely large number of payment protection insurance complaints we have already received – and the 4,000 or so we continue to receive each week – will continue to place heavy demands on our service for a long time to come.

“But we also have to look towards the next phase of our development – establishing new ways of working that will meet our customers’ changing expectations of a quick and informal service.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. 1.4 billion collected in fines in 2014 ! diverted to the treasury;

    The 13% drop in budget will not make very much difference for the vast majority of us ( though a step in the right direction) and levies stay the same !

    One question; why should the good keep paying for the bad ?

    Independent regulatory system or political sponsor ?

  2. Surely a 13% drop in budget means a 13% less levy required. Or, am I missing the math somewhere?

    It’s a wonderful scenario where the ombudsman knows 4000 new PPI cases will come through the door each week keeping them all in well paid jobs but no one has done anything about stopping claim chasing companies making it up as they go. Nice little earner all round.

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