Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of removing the £250 fee for making claims to the Financial Ombudsman Service.

The Financial Ombudsman Service (FOS) provides a free service for consumers and small businesses to resolve disputes with their financial services providers.

The FOS is independent from the government and is funded entirely through a combination of levies and case fees paid by financial services firms within the FOS’s jurisdiction and by professional representatives. Financial services firms are charged a fee of £650 per case. As of 1 April 2025, professional representatives who bring a case to the FOS on behalf of complainants may bring 10 cases a year for free, after which they are charged a fee of £250 per case and receive a £175 refund if the case is found in favour of the consumer they represent. No fee is charged to the consumer.

The FOS is responsible for determining exactly who it charges and the level of any fees, within its legislative framework which is set by Parliament. The FOS consults annually on its proposed Plans and Budget for the following year, including the level of its case fees.

On 25 November 2024, Parliament approved a Statutory Instrument allowing the FOS to charge fees to professional representatives bringing complaints on behalf of consumers. The government considers that introducing a fee for professional representatives when they bring cases to the FOS will help to ensure that the FOS can focus on promptly resolving consumer complaints and reduce the impact of spurious complaints on financial services firms. The new charges were introduced by the FOS following extensive consultation.