As my time as Chief Ombudsman comes to an end this week, I want to take a moment to reflect on the journey that LeO has been on since I started in 2021 - and the opportunities and challenges that lie ahead.LeO has made such significant strides in transforming how we deliver our service and improving stakeholder confidence in the face of some complex and longstanding challenges. We are a more proportionate, efficient and productive service, having significantly increased our resolutions, improved the pace and quality of our service and the customer experience.I’m proud that we have maintained momentum in delivering meaningful performance improvement and efficiencies in each year of my time as Chief Ombudsman. This includes so far in 2025/26 where we are continuing the positive performance trend of finishing at the top end of forecasts, currently on track to resolve a further 7% increase on last year. That’s a significant achievement again against the backdrop of challenges faced and especially the rising demand for our service.But that demand is accelerating sharply and continues to present a serious strategic challenge for LeO and for the sector. Unprecedented numbers of consumers are seeking LeO’s help. In Q1 of 2025/26 alone, new complaints increased by 23% compared to the same period last year, exceeding 3,000 in a quarter for the first time. If this trend continues, we’re now forecasting annual demand would reach nearly 12,500 complaints, which is a 17.5% year-on-year increase. By next year, demand for LeO’s service will have increased by over 110% since the pre-covid period.And this is demand where we are identifying persistent failings in the delivery of legal services. In 2024/25 alone, LeO awarded over £3.7 million in remedies to consumers when resolving and investigating their complaints about legal services.LeO continues to operate as an efficient and high performing service. We are actively exploring ways to further improve and evolve, including through the smarter use of technology to improve our processes. Despite this, it is clear that the sustained increases in sector-led demand presents a challenge that will require further change and agility from LeO and require an appropriate strategic response from the sector.Transformation over the last few years has also been about investing in building LeO’s impact and insight-sharing capabilities – recognising that our role is not only to resolve complaints, but to help prevent them and to help the sector improve legal services.Over the first 18 months of the OLC’s 2024-27 Strategy for the Legal Ombudsman, we have substantially increased LeO’s visibility and insight sharing, and delivered a huge range of practical resources to support service providers. From publishing a range of full Public Interest Decisions, detailed guidance, topical Spotlight insight articles on key areas of complaint, case studies and more, the investment in our insight function is enabling us to provide a range of resources to provide learning for the sector. Our Model Complaints Resolution Procedure and programme of tailored support for providers, along with collaborative efforts from regulators, is helping embed consistency and best practice in complaints handling across the sector.Looking ahead, there is still much to do and LeO is wholly focused on continuing to play its part and work with the sector. Ultimately, meeting the long-term challenge of consumer demand for redress will continue to require a sector-wide collaborative effort to tackle the root causes. That’s why LeO will continue to work closely with the legal sector – listening, learning, and using its voice to support the changes that are needed, as well as recognising the huge importance of an effective redress model.As I step down, I’m pleased to confirm that Steve Pearson, LeO’s Deputy Chief Ombudsman, and Dave Peckham, Head of Operations, will jointly take on the role of Interim Chief Executive while the process to appoint a new Chief Ombudsman is underway. Their combined experience and leadership, so central to the changes delivered over recent years, will, along with the wider Executive Team, ensure continuity and stability during this transition period.To everyone I’ve worked with across the sector over the last five years, thank you. I am confident that the organisation I leave behind is well positioned to continue delivering improvements and responding effectively to the challenges ahead. I look forward to following LeO’s continued progress and wish everyone the very best for the future.
Paul McFadden
