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HomeFinancial PlanningFOS productiveness up 12% however levy rises 10%

FOS productiveness up 12% however levy rises 10%



Caseworker productiveness improved 12% on the Monetary Ombudsman Service in 2021/22 because the Ombudsman confirmed this week that its obligatory levy will rise by over 10% for 2022/23.

The elevated productiveness helped the Ombudsman reduce its whole inventory of circumstances from 165,000 on the finish of 2020/21 to 112,000 on the finish of 2021/22, in response to its annual report revealed this week.

The FOS estimated {that a}, ‘regular state’ inventory stage goal must be round 50,000 circumstances.

Nonetheless, the FOS has elevated its obligatory jurisdiction levy by over 10% to £106m (2021/22: £96m) for 2022/23 to fund its transformation programme.

The Ombudsman will even cut back its free case allowance for particular person corporations from 25 to three in step with its “polluter pays” method.

The FOS has focused a further 7% enchancment in underlying productiveness and can make investments a further £14m in contingent case handlers to scale back its case queues.

Productiveness on the FOS improved on account of steps taken beneath its Motion Plan revealed in December 2021, in response to the Ombudsman.

The entire spending pot for the FOS’ Motion Plan is £18m, with £12m being reallocated from 2021/22’s restructuring funds.

The Ombudsman’s transformation programme is geared towards delivering folks, course of and system enhancements to extend output supply and velocity up turnaround instances whereas sustaining high quality and lowering prices.

The plan additionally targets a discount within the variety of complaints referred to the Monetary Ombudsman Service.

The FOS mentioned the operational productiveness enhancements beneath the Motion Plan ought to ship a 28% enhance in productiveness by the top of This autumn 2023/24.

By growing effectivity, the FOS mentioned it should resolve circumstances at decrease prices, with the present trajectory seeing it not run at a deficit by 2024/25.

In 2021/22 the Ombudsman’s “enterprise as common” prices remained flat, with a value base of £246m, excluding one-off restructuring prices. The FOS made a £10m funding in its capability to resolve complaints in excessive volumes over the 12 months.

The Ombudsman’s revenue was funded primarily by the obligatory jurisdiction levy (44%) of £96m and case charges (32%) which elevated to £750 per case.

Working income was £221.7m (2020/21: £245.1m) with a value base of £233.6m (2020/21: £264.5m).

The FOS acquired 40% fewer new complaints in 2021/22 than in 2020/21 as PPI circumstances ended. Probably the most complained about sectors had been banking and credit score adopted by insurance coverage.

The Ombudsman acquired 14,931 complaints about investments and pensions with the identical variety of complaints resolved. This included 550 complaints concerning the British Metal Pension Scheme (BSPS), of which it upheld over 90%.

In line with its annual report, the FOS discovered the complaints about investments and pensions to be a few of its most difficult circumstances, taking the longest to resolve.




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