The final year of our strategy: a critical juncture 

As we approach the final year of the OLC’s current strategy period for the Legal Ombudsman, we can both look back at significant achievements and ahead to significant challenges.  

LeO is on track to deliver its commitments for 2025/26 and aims to go even further next year. In 2026/27 LeO expects to resolve over 10,000 complaints, a 57% increase in output compared to the pre-pandemic period. This is a considerable achievement, and reflects the organisation’s focus on continual improvement, innovation and digital transformation which have boosted productivity by more than 25% since April 2021.  

LeO has also established great momentum in its programme of learning and insight work. So far in 2025/26, it has published two sets of Public Interest Decisions, piloted a new Model Complaints Resolution Procedure, introduced its Tailored Support initiative for service providers, and launched the Spotlight insight series. It will maintain this positive momentum into 2026/27, continuing to support the legal sector by sharing its insight and promoting better complaint handling.  

But despite both of these major advances, demand for LeO’s help is rising sharply. In the first half of 2025/26, new complaints increased by 26% year-on-year, exceeding LeO’s worst-case forecasts. By 2026/27, it expects demand to more than double compared to 2019/20. LeO is not alone in facing this challenge – evidence of rising volumes of complaints is clear both elsewhere in our own sector and in others. This creates serious pressure on LeO’s ability to maintain and improve the experience of those customers needing its assistance.  

This brings challenging questions and difficult choices. We are clear that part of the answer must be sector-led change to improve consumer service standards and complaint handling. LeO will continue work with regulators and the profession to share learning and insights that help support the necessary change. It is right that it does so, reflects a central element of the OLC’s strategy, and is a fundamental part of being an ombudsman scheme. But sector leadership is required here – LeO does not have the means or mandate to deliver culture change in isolation. 

In parallel, though, LeO must itself think and act equally boldly about new ways to deal with unprecedented increases in demand. Continuous improvement is important, but the scale of the challenge significantly exceeds the efficiency gains that LeO has already made and those that it expects to make this year and next. So in 2026/27 LeO proposes to undertake an ambitious and forward-looking Scheme Transformation Review, to ensure the scheme has the agility to deal with the rising demand. We very much look forward to hearing your views on what this should focus on. 

In the meantime, it is critically important that LeO enters a new strategy period in a robust position, with the strong foundation necessary for further transformation and renewal. The hard-won operational improvements achieved in recent years must not be wasted, and it is vital that LeO is adequately resourced to meet growing demand.  

Equally, we are mindful of the wider economic climate and the difficulties it creates for all organisations. For this reason, we are putting forward in this consultation a range of budget options for our stakeholders’ consideration. The range includes a recommended option (Option 3 – which, including the Scheme Transformation Review, represents a 12.1% increase on LeO’s 2025/26 budget), to safeguard against the very real operational and organisational risks presented by ever-higher demand levels. But it is important to share the real impact of the different options, so that the thinking behind the recommended option is transparently clear.    

LeO has transformed its service in recent years, with impressive results.  

It will need to be radical again.  

We respect the size of the challenge but know that we can rise to it by again working closely with all those people and organisations interested in resolving and preventing legal complaints.  

We welcome your feedback on our plans and proposals for the coming year and will continue to talk to stakeholders to shape them before publishing final versions in spring 2026. 

Elisabeth Davies, Chair, Office for Legal Complaints 

Steve Pearson, joint Interim Chief Executive, Legal Ombudsman 

Dave Peckham, joint Interim Chief Executive, Legal Ombudsman