Legal Ombudsman business plan and budget 2025/26 – Law Society response
The proposals
The Office for Legal Complaints (OLC) consulted on the Legal Ombudsman’s (LeO) draft business plan and budget for 1 April 2025 to 31 March 2026.
LeO wishes to expand its learning and insight work, and is seeking more investment in resources.
The OLC reports an increase in demand for LeO’s service this year. However, the reasons for this remain unclear.
The OLC proposes a 10.2% budget increase for LeO and is seeking a new investigator resource.
From the proposed new investigator resource, 14% (equivalent to three full-time employees) is proposed to support the delivery of targeted learning and insight work.
LeO is suggesting a doubling of the case fee from £400 to £800.
It is also proposing to publish summaries of decisions that would be generated by a combination of artificial intelligence (AI) and human input.
Our view
We support LeO’s strategic objective for service that LeO resolves complaints swiftly, fairly and effectively, providing an excellent customer service.
This should be the key focus for LeO and remain the key priority.
We are pleased to see an improvement in the number of complaints resolved and a reduction in the backlog of cases waiting to be assessed.
However, we are concerned LeO has not met forecasted targets. It is vital that LeO reduces waiting times and the size of its case backlog at pace.
LeO has repeatedly emphasised the need to invest in resources. Its budget has risen accordingly, but the first objective for resolving complaints is still not being met.
We do not support the idea that further investment in resources will result in improvement, based on the outcomes from previous years.
We remain concerned about:
- the pace of change
- high sickness levels
- ongoing failure to meet forecasts
- LeO’s wish to carry out additional work when its core statutory function is not yet satisfactorily managed
What this means for solicitors
Most consumers are very happy with the service provided by legal services providers (87% in 2024, up from 85% in 2023).
However, firms can improve management of consumer complaints at first tier. We are developing information and training to support members to improve how they handle first-tier complaints.
An inflationary rise in LeO’s case fee may be necessary, but we do not agree with a doubling of the fee to £800.
Firms doing legal aid work or even residential conveyancing work are often working at marginal rates once running and compliance costs are factored in.
Doubling the case fee could result in some firms stopping such work as they consider it no longer viable.
This could lead to more advice deserts or costs potentially being passed on to consumers. This will reduce consumers' ability to seek important early advice.
LeO needs to properly consult on any such proposal and consider factors, including:
- the potential impact on different types of firm
- the type of services offered
- potential impact on access to justice
- equality and diversity issues
Next steps
We continue to engage positively with the OLC and LeO.
This enables us to provide constructive feedback to achieve the shared objective of an efficient and well-functioning statutory complaints resolution scheme for regulated legal professionals.
The consultation closed on 13 December 2024.
The OLC will review the consultation feedback when finalising the business plan and budget.
The final 2025/26 business plan and budget will be published in spring 2025, following consideration by the Legal Services Board.