The UK’s Financial Ombudsman Service (FOS) has reported a significant decline in new complaints, reaching their lowest level in two years. According to the latest report, between October and December 2025, the service received 47,300 complaints, down sharply from 68,400 in the same period the previous year. This decline reflects a stabilisation in complaint volumes over the past six months, following a total of 46,300 new complaints in the second quarter of the 2025/26 financial year.
Industry observers attribute the reduction largely to procedural changes by the Financial Conduct Authority (FCA) and the proposed redress scheme for motor finance commission cases. Notably, complaints related to motor finance plummeted from 14,400 a year ago to just 400 in the most recent quarter.
In addition to these structural factors, the FOS has undertaken major internal reforms. A new charging mechanism for complaints filed by professional representatives has encouraged the submission of more thoroughly documented cases. Consequently, the proportion of withdrawn or abandoned cases has decreased significantly. During the 2024/25 financial year, more than one-third of cases filed by professional representatives were abandoned; this has now fallen to 19%.
Interim Chief Ombudsman James Dipple-Johnstone commented: “We are continually improving our service to maintain public confidence in the financial sector. The measures we have introduced ensure that the complaints we receive are more evidence-based and ready for investigation.” He added, “The changes already implemented, along with those planned for the future, will help us achieve our primary objective: providing fast, impartial, and high-quality dispute resolution.”
Excluding motor finance commission cases, the success rate for complaints in the last quarter stood at 31%.
Looking ahead, in December 2025 the FCA announced plans to expand a “super-complaint” initiative targeting household and travel insurance claims, aiming to enhance consumer outcomes and industry standards.
Financial Ombudsman Complaint Statistics (October–December 2025)
| Measurement | Number (Q4 2025/26) | Previous Year (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| Withdrawn/abandoned complaints | 19% | 33%+ |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 latest figures suggest that the FOS is increasingly focusing on efficiency and evidence-based resolutions, signalling a shift towards a more robust framework for consumer protection in the UK’s financial services sector.