Increase in Financial Ombudsman Service Award Limits – Laws and Insurance Products

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Effective April 1, the Financial Ombudsman Service (FOS) award caps increased to the following amounts:

  • £375,000 for complaints referred to the FOS from 1 April 2022 relating to acts or omissions of businesses from 1 April 2019;

  • £170,000 for complaints referred to the FOS on or after April 1, 2022 relating to acts or omissions of businesses before April 1, 2019.

This is an increase from previous award limits, which were set at:

  • £355,000 for complaints referred after April 1, 2020 relating to acts or omissions of businesses on or after April 1, 2019;

  • £160,000 for complaints about acts or omissions of businesses before April 1, 2019 referred after that date.

The allocation limit is adjusted every year in accordance with the Consumer Price Index (CPI) and follows the position defined in the FOS policy statement as of March 2019.

This development may be of interest, among others, to professional claims managers. Increasing the compensation limit may, for example, mean that more claimants choose to file a complaint with the FOS, in appropriate circumstances, rather than litigation.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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