The increase took effect from 1 April and relates to complaints referred to the service about acts or omissions by firms on or after 1 April 2019.

On top of that, for complaints referred to the service about acts or omissions by firms before 1 April 2019, the award limit has increased from £190,000 to £195,000.

The compensation award increase by the FOS is in line with prior increases by the organisation. In 2023, the maximum award was increased from £375,000 to £415,000.

The award limit is the maximum amount the FOS can require a financial business to pay when it upholds complaints. The limit is adjusted each year in line with inflation, as measured by the Consumer Prices Index (CPI).

The Financial Conduct Authority confirmed the increase to the award limits for the 2024-25 financial year in March.

When a customer has lost out financially, the FOS can usually tell the business to compensate them for the loss it caused. It can be any amount of money up to the award limit. Different limits apply depending on when the case was brought to the FOS:

• £430,000 for complaints referred on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019.
• £415,000 for complaints referred between 1 April 2023 and 31 March 2024 about acts or omissions by firms on or after 1 April 2019.
• £375,000 for complaints referred between 1 April 2022 and 31 March 2023 about acts or omissions by firms on or after 1 April 2019.
• £355,000 for complaints referred between 1 April 2020 and 31 March 2022 about acts or omissions by firms on or after 1 April 2019.
• £350,000 for complaints referred between 1 April 2019 and 31 March 2020 about acts or omissions by firms on or after 1 April 2019.
• £195,000 for complaints referred on or after 1 April 2024 about acts or omissions by firms before 1 April 2019.
• £190,000 for complaints referred between 1 April 2023 and 31 March 2024 about acts or omissions by firms before 1 April 2019.
• £170,000 for complaints referred between 1 April 2022 and 31 March 2023 about acts or omissions by firms before 1 April 2019.
• £160,000 for complaints referred between 1 April 2019 and 31 March 2022 about acts of omissions by firms before 1 April 2019.
• For complaints referred before 1 April 2019, the award limit of £150,000 applies.

The Financial Conduct Authority (FCA) Dispute Resolution Rules say the FOS can make an award of an amount it considers fair compensation for any or all of the following types of award:

• money awards
• awards for distress and inconvenience
• interest awards
• costs awards
• directions

In cases where the FOS thinks a customer is due more than the limit, it will recommend the additional amount it thinks a company should pay. It can also award fair compensation for distress, inconvenience, pain and suffering as well as for damage to reputation.

It can also tell companies to pay interest on top of (or as part of) any payment it recommends. Interest on an award is usually calculated from the date the customer should have had the money until the date it was actually paid.

If there have been widespread regulatory failings by a business, the FCA may require it to enter a consumer redress scheme. It will include a set of rules that the business has to follow when compensating its customers for a specific issue.