The Financial Ombudsman Service has confirmed it will collect fees from the industry of £24.5 million in 2016/17.

The overall levy for the ‘compulsory jurisdiction’ will rise from £23.3 million, the FOS confirmed this morning.

An operational income budget of £226.5 million has been set for 2016/2017– a small reduction from the latest forecast for 2015/16.

Officials said the FOS expects to receive around £55.9 million in case fees, of which around £0.5 million will come from the voluntary jurisdiction levy.

The FOS said in a statement: “This budget will be funded by a combination of levies and case fees.

“As we set out in the consultation, next year marks the end of the transition period for consumer credit businesses – from being licensed by the Office of Fair Trading (OFT) to being authorised by the FCA.

“To return the levies to the same level as before the transition, and in line with our previously agreed approach, we have asked the FCA to increase the overall levy for the ‘compulsory jurisdiction’ from £23.3 million to £24.5 million in 2016/17. This means the overall amount of the levy in 2016/17 is effectively frozen for all other industry blocks.

“The levy for the ‘voluntary jurisdiction’ will remain at £0.6 million. The FCA will be consulting separately on the allocation of the compulsory jurisdiction levy.”

The statement read: “We know the next twelve months will be particularly challenging, as the FCA consults on introducing a deadline for complaints about mis-sold PPI, along with proposed rules and guidance in light of the Supreme Court’s judgment in the case of Plevin v Paragon Personal Finance Ltd, and these developments have contributed to a number of uncertainties in the regulatory environment.”