OLC sets out significant reforms to help meet unprecedented demand for LeO

The Office for Legal Complaints (OLC) has today launched a wide-ranging consultation on proposed changes to the Legal Ombudsman’s (LeO) Scheme Rules, case fee arrangements and approach publishing decisions, as part of a broader programme to improve consumer experience of complaints across the legal sector and transform the service in response to unprecedented levels of demand.

The consultation, which runs for 12 weeks until midday on 2 September 2026, follows ongoing engagement with the legal sector and sets out targeted reforms designed to improve consumers’ experience, support and encourage better complaint handling, and ensure LeO remains effective, responsive and sustainable.

Demand for LeO’s service has increased significantly, with complaint volumes rising by 37% in 2025/26 alone. This growth is being driven by a combination of changing consumer expectations, issues with first-tier complaint handling, and wider societal trends, including the growing role of artificial intelligence tools. This amplifies the need for transformation in complaint handling, by both the legal sector and LeO itself.

The proposals in the consultation build on continued improvements in LeO’s own service and operational delivery. But despite these ongoing improvements, it remains clear that the pace and scale of demand present a considerable challenge to LeO’s current operating model. An externally-led review of LeO’s model is planned for 2026/27 to address these longer-term challenges. 

Today’s consultation focuses on three key areas where more immediate action can be taken:

  • Scheme Rules – targeted changes to support clearer expectations, more proportionate decision-making and faster resolution. This includes requiring clearer articulation of the impact of poor service, introducing a 12-year longstop for complaints, and reducing unnecessary escalation to ombudsman decisions where investigator findings are sufficient.
  • Case fees – a revised model for charging case fees which introduces differentiated case fees, alongside additional charges for providers who have not provided a final response as part of the first-tier complaints process. The approach is designed to incentivise earlier resolution and better complaint handling, while maintaining free access for consumers.
  • Publishing decisions – making the necessary changes to the current publication policy to support a move towards publishing more ombudsman decisions in the future.
    The proposals are informed by LeO’s experience of complaint handling across the legal sector, including evidence that one in four customers who escalated a complaint say they have not received a final response from their service provider – something which prevents early resolution and increases pressure on the scheme to resolve the complaint through a full investigation.

Chair of the OLC, Ric Blakeway, said:

“Legal services are operating in a changing and challenging environment and high-profile events have shaken consumer confidence. Fragile trust is reflected through unprecedented demand to the Legal Ombudsman. This amplifies the call for a transformation in complaint handling, by both the legal sector and LeO itself.

“This consultation seeks to encourage a shift in culture and ensure complaint handling across the sector consistently meets the standards consumers would expect. 

“These proposals are also about ensuring LeO is operating as efficiently and effectively as possible, while reducing avoidable demand and strengthening accountability within the sector. Improving how complaints are handled at source is critical – both to delivering better outcomes for consumers and to building confidence in legal services.”

Chief Ombudsman, Phil Cain, said:

“The scale and pace of rising demand present a significant challenge for LeO’s current operating model, and we need to ensure we are maximising our operational capacity and focusing our resources where they can have the greatest impact.

“These proposals introduce stronger incentives for legal providers to engage with complaints at first tier and resolve them at the earliest possible opportunity. They also ensure that those providers who are not handling complaints effectively – and are therefore generating the greatest demand – contribute more towards the cost of the service.”

The OLC is inviting views from legal service providers, regulators, professional bodies, and consumers and their representatives, to help shape the final approach. Feedback will inform how the proposals are refined to ensure they are practical, proportionate and deliver meaningful improvements in complaint handling and consumer outcomes.

More information on LeO’s transformation plans can be found in the 2026-27 Business Plan.

 

Notes to editors

  • The Legal Ombudsman scheme was established by the Office for Legal Complaints under the Legal Services Act 2007.
  • This consultation forms part of the OLC’s wider programme to transform the Legal Ombudsman, alongside continued improvements to operational delivery and an externally-led review of the scheme’s operating model planned for 2026/27.
  • Any proposed changes to Scheme Rules or case fee arrangements would require approval from the Legal Services Board and, where applicable, the Lord Chancellor before implementation.
  • For queries about the consultation, contact consultations@legalombudsman.org.uk