The Office for Legal Complaints (OLC) has launched a wide-ranging consultation on proposed changes to the Legal Ombudsman’s (LeO) Scheme Rules, case fee arrangements, and approach to publishing decisions.
These proposals outlined are in response to significant demand for LeO’s service, which has increased markedly in recent years – rising by 37% in 2025/26 alone – driven by a combination of changing consumer expectations, greater awareness of routes to redress, and wider societal trends, including the growing role of artificial intelligence tools. Whilst that change is not unique to the legal sector, the pace and scale of this increased demand present a considerable challenge to LeO’s current operating model.
The consultation sets out proposals in three key areas:
- Scheme Rules – to support clearer expectations and more efficient resolution;
- Case fees – to incentivise earlier resolution and better complaint handling at source; and
- Publishing decisions – to enable greater transparency over time.
The consultation is open for 12 weeks and closes at midday on 2 September 2026.
Key proposed points
- A requirement for complainants to explain the impact of poor service more clearly.
- A 12-year longstop from awareness of a service failing for consumers raising complaints.
- Ensuring fewer cases escalate to a formal ombudsman decision where an investigator’s findings are sufficient.
- Differentiated case fees depending on the stage - up to £1.5k for an Ombudsman decision and an additional £400 charge for firms who have not provided a final response.
- All cases are potentially liable to be charged a case fee (including cases dismissed under scheme rules or resolved by early resolution) unless the case fee waiver test is met. Costs to be tiered to the investigation stage it has reached. Case fee income can only be used to reduce the levy contribution.
- Fees can be waived if the complaint is resolved in the firm’s favour, and the ombudsman is satisfied that they took all reasonable steps to resolve the complaint at first tier – LeO note these firms should also benefit from a reduced levy.
- Moving away from only publishing high-level statistical data or where it is in the public interest - to publishing every ‘ombudsman’ final decision on LeO’s website.