FOS cuts budget 13% and freezes levy at £23m

The Financial Ombudsman Service (FOS) is to make further cuts to its operating budget in the coming financial year and has frozen its levy at £23.3m.

Its proposed Plan and budget for the next financial year (2015/2016), released on 6 January, said the organisation will reduce its operating budget from £253.7m to £220.7m. It said this would result in a 13% cost saving to the financial services sector, which funds the service via levies and case fees. The overall compulsory levy on the industry will remain at £23.3m in 2015-2016. It also said it intends to recruit an additional 200 adjudicators and ombudsmen. It said it would continue to freeze the case fee paid by businesses at £550, payable only after the 25th case. It said t...