The Office for Legal Complaints (OLC) has today launched a consultation on proposed changes to the Legal Ombudsman’s (LeO) case fee structure, marking the first adjustment to the fee since its introduction in 2010.
The consultation proposes an inflationary increase in the case fee from £400 to £600 per case, together with a review mechanism, to help ensure the longer-term sustainability of the scheme whilst maintaining fairness for both consumers and legal service providers.
LeO is primarily funded by a sector-wide levy, and through case fees – charged to service providers if evidence of poor service or poor complaint handling is found.
The proposal follows detailed feedback from stakeholders during the 2025/26 Budget and Business Plan consultation – which explored options for changing the case fee structure, including increasing the fee from £400 to £800. While there was broad support for a fee review, concerns raised included the potential impact of the originally proposed increase on access to justice and the viability of providers operating in high-volume or low-margin areas of law.
In response, the OLC has opted not to pursue more complex models such as a tiered fee or “polluter pays” approach. Instead, it is proposing an inflationary adjustment to £600 rather than £800, reflecting the real-term value of the original fee and helping to reduce the burden on the sector-wide levy.
The consultation also seeks views on introducing a regular five-year review cycle for the case fee to balance longer-term stability and ensure that it remains fit for purpose.
Chair of the Office for Legal Complaints, Elisabeth Davies, said:
“At the heart of the Legal Ombudsman scheme is a commitment to fairness, independence, and accountability – values that underpin public confidence in legal services. For many consumers, knowing that there is an impartial body they can turn to if something goes wrong is not just reassuring – it’s essential.
“A change to the case fee is not just about updating a number; it’s about ensuring the scheme continues to deliver independent, high-quality redress in a way that is fair to both consumers and providers.”
Subject to consultation feedback and approval from the Legal Services Board and the Lord Chancellor, the new fee would take effect from 1 April 2026. Cases received before this date would remain under the current £400 fee structure.
The consultation is open until 12pm on 10 September 2025.
