Legal Ombudsman says proposed fees are intended to encourage earlier complaint resolution
Legal Ombudsman case fees are at the centre of a new Q&A explaining proposed changes to how providers could be charged when complaints reach the ombudsman.
The Legal Ombudsman published the Q&A on 13 August 2026 as part of its ongoing engagement on the Office for Legal Complaints’ consultation covering changes to case fees, Scheme Rules and the publication of ombudsman decisions.
The organisation said the three areas should be viewed as a connected package rather than separate reforms. It said proposed Scheme Rules changes would help focus on complaints involving real impact or detriment, while the case fee proposals are intended to encourage providers to respond to complaints, engage earlier and resolve issues before formal intervention is required.
The proposals on publishing ombudsman decisions are intended to support greater transparency, informed consumer choice and wider learning across the sector.
For solicitors and other legal service providers, the main practical point is that the proposed fee structure is intended to create a stronger financial incentive to deal with complaints properly and at an earlier stage.
Consumers would not be charged
The Legal Ombudsman said it is not considering charging consumers to bring complaints.
It referred to the explanatory notes to the Legal Services Act 2007, which state that where a complaint has not been satisfactorily resolved in-house, a consumer can bring it to the ombudsman scheme free of charge.
The Ombudsman Association’s Terms and Rules also state that people complaining to an ombudsman should be entitled to do so without charge.
The Legal Ombudsman said charging consumers could create a barrier to redress, particularly for people who are vulnerable, on low incomes or already experiencing financial hardship.
Proposed fees are not intended as a revenue-raising measure
The organisation also rejected the suggestion that the proposals are intended to raise revenue.
It said case fee income cannot be used for additional spending and can only reduce the overall levy contribution payable by the sector.
Based on closed cases in 2024/25, the existing regime generated about £940,000, representing around 5% of the Legal Ombudsman’s costs. Under the proposed model, it said this could have been nearly £3.5 million, or around 20% of costs, reducing the levy-funded proportion from 95% to about 80%.
£400 proposed where no final response is issued
The proposed additional £400 fee where a provider has not issued a final response within eight weeks is another significant point for firms.
The Legal Ombudsman said around 25% of complaints received each year involve consumers reporting that they did not receive a final response from their provider. This represented around 2,000 cases in 2024/25 and 2,300 in 2025/26.
Where checks establish that no response was provided, the complaint cannot be resolved through an early-resolution process and will require a full investigation, creating additional time and cost.
The Legal Ombudsman said that cost should not be borne by the rest of the profession through the levy.
It also said the proposals are not designed to pressure providers into settling complaints without merit. Where a provider has handled a complaint appropriately and offered fair redress where justified, it should have confidence in its position.
Complaints can still be dismissed where there is no real detriment, a reasonable remedy has already been offered, or further consideration would be disproportionate. No case fee would be charged where neither poor service nor poor complaint handling has been identified.
The wider consultation proposes fees linked to the stage at which a complaint is resolved. The consultation document proposes £200 for early resolution, £750 following an investigation and £1,500 where an ombudsman decision is required.
The consultation remains open until midday on 2 September 2026.