OLC consults on 2026/27 Business Plan and Budget for LeO

The Office for Legal Complaints (OLC) announces the launch of a radical Scheme Transformation Review for the Legal Ombudsman (LeO), as it publishes budget recommendation for 2026/27 alongside data showing a surge in complaints.

• LeO will resolve more than 10,000 complaints in 2026/27. It has increased case resolutions by more than 50% since 2019/20.
  
  
• Demand for LeO’s help will more than double in the same period (2019/20-2026/27). New complaints in the first half of 2025/26 have increased 26% year-on-year.
  
  
• LeO needs adequate resourcing to meet the immediate demand challenge, but the scale of the increase requires fresh thinking.
  
  
• A Scheme Transformation Review will seek views on radical options for change.
  
  
• As it considers future reforms, LeO will hold case fees at £400 in 2026/27. 

The OLC has published its draft 2026/27 Business Plan and Budget for the Legal Ombudsman, setting out an ambitious programme for the final year of its 2024-27 Strategy and inviting views on wider-reaching reform. 

LeO is receiving record numbers of complaints from people unhappy with the legal service they have received, and who have been unable to resolve their complaint with their provider. In the first half of 2025/26 alone, complaints to LeO were 26% higher than the same period last year.  

The scale of the increases in complaints outstrip the significant performance improvements LeO has delivered in recent years: introducing early resolution, reducing customer journey times, and increasing productivity by a quarter since April 2021. 

Closing this gap presents challenges for the whole sector: for regulators, for service providers and for the ombudsman. Imaginative and bold thinking is required, so LeO will undertake a Scheme Transformation Review to explore options for ensuring it has the agility to deal with rising demand. 

Plans and Budget for 2026/26

The 2026/27 Business Plan published today commits LeO to:

• Responding to sustained and accelerating volumes of complaints by increasing resolutions – subject to budget resourcing – to 10,000 complaints next year.
• Implementing AI and digital front-end solutions – deepening LeO’s approach to continuous improvement, efficiency and digital transformation.  
• Providing an equitable and inclusive service, strengthened customer experience, and prioritised support for those who need it.
• Supporting the legal sector by sharing insight, launching its Model Complaints Resolution Procedure, and building its learning and training resources.  
• Delivering greater value for money – balancing operational delivery with investment in future service design.
• Holding its case fee at £400 for 2026/27, pending a root and branch review as part of its transformation agenda. 

In response to the challenges posed by rising demand in an economic climate where budgets are tight, the OLC has adopted a new approach this year, setting out four distinct budget options for LeO for 2026/27.

Each option carries different implications for output, unallocated investigations levels, and customer experience. The options represent real trade-offs and difficult choices. As a balanced compromise, the OLC sets out a recommended option of a 12.1% increase on LeO’s 2025/26 budget (including the cost of the Scheme Transformation Review). 

Latest complaints data and insight

Alongside the business plan and budget consultation, LeO has also published its 2024/25 Annual Complaints Report and data for the first two quarters of 2025/26. Key trends and findings that are highlighted include:

• Rising demand and case complexity – LeO is not only receiving more complaints, but more that require an in-depth investigation.
• Standards of service and poor complaint handling remain poor in too many cases: 70% of complaints with an investigative outcome had evidence of poor service in 2024/25, and 49% had evidence of poor first-tier complaint handling.

The findings reinforce the twin-track strategic approach that continues to underpin LeO’s work and proposals for 2026/27: optimising its own operational delivery whilst simultaneously supporting the sector by sharing insight to promote better complaint handling. 

Elisabeth Davies, Chair of the OLC, said:

“LeO has transformed its service. These gains have been hard-won and must not be lost. But with complaints continuing to rise rapidly, LeO must be radical again and find new ways to meet growing demand. 

“These challenges cannot be met by LeO alone. A sector-led approach is essential, including to improve standards of service and complaint handling, and LeO will continue to be a positive and proactive partner in supporting this improvement.

“Collaboration is key to lasting change, and that’s what sits at the heart of this consultation. We look forward to hearing stakeholders’ views on how we can work together to deliver for all customers of legal services.”

Notes to editors

• Stakeholders are invited to provide feedback on the draft Business Plan and Budget for 2026/27 by 12 p.m. on Tuesday 16 December 2025. If you have any questions about the consultation, LeO’s data publications or its work more generally, please contact us.
• The Legal Ombudsman scheme was established by the Office for Legal Complaints under the terms of the Legal Services Act 2007. The Act also established the Legal Services Board to oversee the regulation of the legal profession in England and Wales.
• LeO resolves complaints about legal services that legal providers haven’t resolved to customers’ satisfaction - as quickly and informally as possible. LeO covers the majority of legal services provided in England and Wales. The rules and limits about what complaints LeO can help with are set out on its website.
• 2026/27 marks the final year of the OLC’s 2024-27 Strategy for the Legal Ombudsman – focused on two objectives of service and impact. The OLC’s current strategies and business plans for LeO are published in full on LeO’s website.