The Financial Ombudsman Service (FOS) is to raise its case fees and levies for the first time in three years, according to its 2026/27 plans and budget.

Both fees and levies remain lower than they were in 2023/24, according to the FOS consultation on its plans and budget released this morning.

The FOS plans to increase its case fee by 4.6% to £680 (2024/25: £650) and compulsory levy to rise 10% to £86m (2024/35: £70m). The levy will be the same level as seen in 2020/21.

The Ombudsman argued that the increase to the levy is needed in order to cover the impact of inflation and improve its reserves.

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.

The Ombudsman said that it expects to receive 188,000 cases in 2026/27 across a range of financial products including bank accounts, credit cards and insurance.

The FOS expects the number of claims related to investment and pensions to fall for the 2025/26 year to around 11,500 (2024/25: 13,500) before rising again to 13,000 by 2026/27 due to the impact of the Advice Guidance Boundary Review.

The service is planning to resolve 245,000 cases as it works through its existing stock levels, 60,000 of which will be related to motor finance commission.

In 2024/25 the Ombudsman resolved 16,400 investment and pensions cases, with 15,200 expected to be resolved in 2025/26.

The FOS also expects complaints about Buy Now Pay Later products to come into its jurisdiction from July 2026, meaning it is likely to start receiving complaints in the second half of 2026/27. The service said it expects to receive around 2,000 cases on issues including general administration, problems with credit files and perceived irresponsible lending.

The FOS is currently working with the FCA and Treasury to deliver a series of reforms to the redress system.

In today’s consultation, the FOS said it expects the majority of these changes to take place over the next two financial years.

Jenny Simmonds, interim Chief Executive at the Financial Ombudsman Service, said: “We are delivering a series of improvements to focus on our core purpose as a quick, informal and impartial alternative to the courts, now and in the future, helping to build confidence in financial services.

“As we consult on our Plans and Budget for 2026/27, 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 Ombudsman 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.

The FOS consultation is open until 21 January 2026.