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Regulation

Legal Ombudsman reports sharp rise in complaints as it reforms caseload reporting

LeO and the Office for Legal Complaints say demand is growing faster than the scheme can resolve cases, as they prepare to consult on a new 2027-2030 strategy.

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The Legal Ombudsman (LeO) said demand for its service rose sharply in the first half of 2026/27, with more than 8,700 complaints received, even as it resolved more cases than in the previous year, according to a half-year update published on 30 October 2026.

LeO said it received 31% more complaints in the first quarter than in the same period last year, rising to 43% higher in the second quarter. It said it resolved 2,327 complaints in the first quarter and 2,551 in the second, increases of 15% and 26% respectively on the previous year, with almost two-thirds concluded through Early Resolution rather than a full investigation.

Key points

  • LeO said it anticipates receiving nearly 18,000 new complaints this year, rising to more than 21,000 in 2027/28, against a current model capacity of around 15,000 to 15,500 resolutions a year.
  • Poor communication and delay accounted for around 45% of complaint types accepted by LeO in both the first and second quarters, and around one in four consumers said they had not received a final response from their provider before approaching LeO.
  • The Office for Legal Complaints (OLC) consulted over the summer on proposed changes to LeO’s Scheme Rules, case fees and the publication of final ombudsman decisions.
  • LeO said it is changing how it measures and reports its caseload, moving to a fuller, end-to-end view of all work moving through the service.
  • LeO forecasts that by March 2027 it will be managing around 12,260 open cases in total, of which approximately 9,612 will be awaiting progression at different stages.

Rising demand and a new reporting measure

LeO said the gap between rising demand and its resolution capacity is not sustainable, which is why it says it must transform the service for the future. It has started work on a Scheme Transformation Review, supported by Deloitte, looking at how its operating model needs to change as demand grows.

LeO said its new caseload reporting framework will include open enquiries and complaints in General Enquiries and Early Resolution, work being prepared for investigation, active investigations and cases approaching conclusion. It said the new forecast of around 12,260 open cases cannot be compared directly with its previous forecast of 4,939 to 6,732 complaints waiting for investigation at the end of the year, because the previous forecast measured a particular part of the customer journey while the new figure captures work across the service. LeO said the larger total principally reflects a more comprehensive view of work already within the service, alongside a genuine and significant increase in demand.

Consultation on scheme rules and forthcoming strategy

LeO said the OLC’s consultation on Scheme Rules, case fees and publication of final decisions aims to encourage better first-tier complaint handling, resolve complaints at the earliest appropriate stage and rebalance how the scheme’s costs are distributed. LeO said responses to the consultation emphasised the importance of access to justice, openness and transparency, and the need to support vulnerable consumers, and that this feedback will shape the proposals as they are developed and implemented.

LeO and the OLC said that next week they will consult on a new OLC and LeO Strategy for 2027 to 2030, along with a 2027/28 Business Plan and Budget, which will set out how they intend to respond to rising demand, improve the experience of consumers and providers, and make greater use of what complaints can teach the sector. The update was published jointly by Phil Cain, Chief Ombudsman, and Ric Blakeway, Chair of the OLC.

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