Rising complaints prompt reform plans as demand outpaces the current system
The Office for Legal Complaints (OLC) has unveiled plans to reform the Legal Ombudsman service in response to a sharp rise in complaints and increasing pressure on its operations.
In its 2026–27 Business Plan and Budget, the OLC outlined a programme of changes aimed at transforming how the Legal Ombudsman (LeO) operates, following what it described as unprecedented demand.
The number of complaints handled by LeO has increased significantly in recent years. After a rise of almost 30% in 2025–26, the organisation expects to receive 17,675 new complaints in 2026–27. This represents a 174% increase compared with 2019–20 levels.
The OLC stated that this level of demand is exceeding improvements already made to service delivery and cannot be sustained under the current operating model. As a result, the plan sets out measures to improve efficiency, reduce demand where possible, and introduce longer-term structural changes.
A key element of the strategy is to prevent complaints from arising in the first place. The Ombudsman will continue to expand its learning and insight initiatives, including the rollout of a Model Complaints Resolution Procedure and increased sharing of data with legal service providers.
The plan also includes a comprehensive, externally led Scheme Transformation Review, designed to reshape the service for the future. The review will focus on developing a more agile and digitally enabled system capable of managing higher demand levels over the long term.
To support these changes, the OLC initially proposed a budget of £22.2 million for 2026–27, representing an 11.1% increase on the previous year. However, the Legal Services Board approved a revised budget of £21.3 million, a 6.5% increase.
The OLC indicated that the reduced budget may limit its ability to expand operational capacity as planned. Nonetheless, it stated that efforts would be made to minimise the impact on waiting times and case backlogs.
Additional funding has been approved separately to support the transformation review, including resources for the initial discovery phase in 2026–27.
OLC Chair Ric Blakeway said the plan reflects a challenging environment but also provides an opportunity to modernise the service. Chief Ombudsman Phil Cain added that while short-term pressures remain, the reforms are intended to deliver a more sustainable and responsive system in the future.
The changes form part of broader efforts to ensure the Legal Ombudsman can continue to meet demand and support both consumers and legal service providers.