The Financial Ombudsman Service (FOS) has proposed to freeze its annual levies on the financial services sector, despite an expected increase in complaints next year.
Currently, the FOS has yet to see a significant increase in complaints related to cost of living pressures.
However, the ombudsman said it was mindful that an increase is on the way as there had been a rise during the Covid-19 pandemic.
In the face of increasing complaints FOS is continuing to push down the price per case in line with the action plan it published in December 2021.
Abby Thomas, chief executive and chief ombudsman, said: “Over recent years, we have generally run a deficit and we need to change our funding model.
“Under our transformation programme, we are making changes which drive cost efficiencies and change our funding model to ensure we recover our costs and are financially sustainable.
“However, we recognise the cost pressures on businesses and propose to freeze our levy and case fees at the same level as last year, which we hope will be welcomed by industry.”
FOS added that it was expecting to see a rise in mortgage complaints as rising interest rates and product portfolio changes on mortgages lead consumers to seek resolutions.
The increase will come on the back of a small decrease in mortgage complaints during the 2022/23 financial year.
