The United Kingdom’s Financial Ombudsman Service (FOS) has reported a marked decline in new complaints, reaching the lowest levels observed over the past two years. According to its latest report, between October and December 2025, the service received a total of 47,300 complaints—a nearly 31% decrease compared with 68,400 complaints lodged in the same period the previous year. This reduction suggests that complaint volumes have stabilised over the past six months. During the second quarter of the 2025/26 financial year, new complaints numbered 46,300.
The FOS attributes much of this decline to temporary pauses in complaint-handling procedures by the Financial Conduct Authority (FCA) and to proposed redress schemes related to motor finance commission cases. Notably, motor finance-related complaints fell sharply to just 400 in the latest quarter, down from 14,400 in the corresponding quarter of the previous year.
In addition to managing complaint volumes, the service has embarked on significant reforms. Charges introduced for complaints submitted by professional representatives have led to more robust and evidence-based submissions, reducing the rate of withdrawn or abandoned complaints. In the 2024/25 financial year, more than one-third of cases submitted through professional representatives were abandoned; this year, the rate has fallen to 19%.
Interim Chief Ombudsman James Dipple-Johnston said, “We are continuously improving our service to maintain public confidence in the financial sector. Our reforms are ensuring that the complaints we receive are more thoroughly evidenced and ready for investigation.” He added, “The changes we have implemented, and those planned for the future, support our core objective: delivering fast, impartial, and high-quality dispute resolution.”
Excluding motor finance commission cases, the success rate for complaints in the last quarter was 31%. Furthermore, in December, the FCA announced plans to expand its “super-complaint” process to improve standards in domestic and travel insurance claims.
Financial Ombudsman Complaint Statistics (October–December 2025):
| Measure | Q4 2025/26 | Q4 2024/25 |
|---|---|---|
| Total complaints | 47,300 | 68,400 |
| Motor finance-related complaints | 400 | 14,400 |
| Withdrawn/abandoned complaints | 19% | 33%+ |
| Success rate (excluding motor finance) | 31% | 30% |
The figures clearly illustrate that the Financial Ombudsman Service is focusing not only on improving operational efficiency but also on fostering more substantiated complaints. These steps enhance the transparency and credibility of the UK financial sector, reinforcing public trust and confidence in dispute resolution mechanisms.