The legal ombudsman's scheme is seeking a 10.2% rise in its budget to cope with 'persistently high' numbers of complaints, it revealed today. In a draft business plan and budget 2025/26, the Legal Ombudsman's Office (LeO) proposes spending £19,784,220 in 25/26.

It also proposes doubling the case fee payable where a complaint is resolved in the client's favour and where the service provider 'did not take reasonable steps to resolve the complaint' to £800.

Justifying the planned increase, the office said it is consistently resolving 25% more complaints than in the past, including half through early resolution. 'Persistently high numbers of people who’ve relied on legal services at critical times in their lives are turning to LeO, with demand having never returned to pre-pandemic levels. In 2025/26 LeO expects to receive 9,700 new complaints, and take on 7,500 for early resolution or investigation.

Until now, the plan states, this higher throughput 'has been absorbed without substantial increase in operational resource'. 

'In the context of high demand, the OLC is aiming to balance investing in resource to reduce the queue of people waiting; to help the legal sector prevent demand and consumer detriment at source; and to ensure LeO is harnessing the power of technology to enhance its service and generate savings and efficiencies.'

The case fee increase recognises the role of this income in both offsetting the levy and in incentivising better complaints handling through underlining the 'polluter pays' principle.

Among the issues that could increase demand for the LeO's services is 'an ongoing possibility that service provider closures could drive complaints to LeO on a large scale'. The document cites the failures of Axiom Ince and SSB as highlighting 'clear gaps in consumer redress'.

Developments in the use of artificial intelligence could also give rise to new issues 'as well as increasing the complexity of understanding what has happened and where responsibility lies'.  

The consultation is open until 12pm on 13 December 2024.