Legal Services Board minded to approve 6.5% uplift instead of requested 11% as backlog exceeds 3,200 unallocated investigations
The Legal Services Board is poised to block an 11% budget increase requested by the Office for Legal Complaints, backing instead a smaller uplift for the Legal Ombudsman despite continued growth in complaint volumes.
Board papers ahead of this week’s meeting show the oversight regulator is minded to approve an increase of around 6.5% for 2026/27.
The reduced uplift would allow the ombudsman scheme to recruit four additional staff and resolve between 2,400 and 3,200 extra complaints.
The OLC had argued a larger increase was required to respond to sustained demand and reduce waiting times. However, the board signalled concerns about whether the preferred option represented value for money and whether increasing staff numbers alone would address longer-term pressures on performance.
Complaints accepted by the ombudsman rose 26% year on year, exceeding even worst-case projections.
Despite improvements in productivity in recent years, the organisation continues to face a substantial backlog. More than 3,200 investigations were waiting to be allocated at the start of the year, with complainants facing an average wait of 319 days before cases are assigned.
Board papers note that since 2023/24 resources have largely been absorbed by new cases rather than reducing historic queues.
The oversight regulator also questioned whether the scheme’s operating model is sufficiently flexible to respond to sustained increases in demand.
Even under favourable assumptions about complaint volumes, the board expects a significant queue of unallocated investigations to remain for at least the next two years.
The final decision on the 2026/27 budget will need to balance improving service performance with the board’s statutory duty to ensure regulatory costs remain proportionate for the profession funding the scheme.