The Financial Ombudsman (FOS) has revised the number of complaints it expects in the period 2024/2025 from 181,300 to 210,000.
It says this is due to several factors such as everyday financial problems such as unaffordable loans, credit card complaints and fraud and scams.
However, the FOS added that it has reduced the time taken to resolve a case from 4.8 months in 2022/23 to 2.96 months in the last three months of 2023/24. It has also set a new target of resolving 90% of cases within six months.
In addition, it has committed to solving 17% more cases in the coming year than in 2023/2024, an increase from 192,500 to 225,000.
To combat the increased workload, the FOS will recruit more practitioners.
There is also a commitment to continue investing in the digital customer and business journey, and to expand its regional presence in Britain to ensure the Ombudsman is accessible to different communities.
The FOS has also confirmed its intention to reduce the cost of its services to industry by 2024/2025.
Litigation costs will also fall by £100 per case to £650, while mandatory and voluntary jurisdiction levy costs for companies will also be reduced. This will result in an effective reduction in fees and levy costs of £60 million for businesses, once inflation and case growth are taken into account.
FOS chief executive and chief ombudsman Abby Thomas said: “The Financial Ombudsman Service continues to make significant improvements to the service we provide, helping customers make faster decisions while maintaining the high quality of our work. Next year we will be even more ambitious, with plans to resolve complaints faster while reducing the cost of our services to businesses.
“Over the coming year, our service is likely to see an increasing number of complaints, with many of these disputes expected to focus on the critical issues affecting people’s everyday lives. This includes perceived loan unaffordability, concerns about car loan agreements, and disputes surrounding fraud and scams.
“As there is uncertainty around the scale of business in the coming year, we are building a service that is flexible and agile, allowing us to respond to increased demand in every part of our business.
“Our plans will ensure that the customer is at the heart of everything we do. We want everyone who engages with our services to clearly understand the outcome of their case. Now more than ever, it is critical that businesses work with us to improve all customers’ experiences with financial services.”