Under plans released this morning the organisation said its operating costs would be £295.2m for 2017/18, an increase from the £265m budgeted for in this financial year. The forecast for 2016/17 now stands at £256.5m.
This year its total operating income was budgeted at £226.5m. This is set to rise to £276.6m.
See table below.
The body has also said today it is expecting to receive more complaints than it had planned for at the beginning of the year for 2016/17.
Source: FOS Budget papers.
Complaints will end up around the 319,000 for the current financial year, it estimated, which would be 13,000 more than anticipated.
Today’s proposals include freezing the case fee paid by businesses at £550 for the fifth year running.
Businesses pay a case fee only after their 25th case, which the FOS said meant 99% of businesses will continue to pay no case fee at all.
The compulsory jurisdiction levy is to be frozen at £24.5m.
The FOS said in its report it expects a record number of complaints about payment protection insurance next year.
Caroline Wayman, chief ombudsman, said: “Like last year, we’re planning for the next financial cycle at a time of ongoing uncertainty in the area with the most significant bearing on our work. As ever, we remain focused on giving quick and fair answers to individual problems, while ensuring we’re in a position to respond effectively to future demand for our help.”
She said: “We think that the number of complaints we’ll receive in 2017/2018 will be heavily influenced by the Financial Conduct Authority’s proposed deadline for PPI complaints – as well as the final content of its proposed rules and guidance on how firms should approach complaints following Plevin. And complaint volumes will depend both on the timing and the implementation of these proposals.”
The consultation for the Budget plans runs until 31 January.