Ombudsman staff numbers to jump by half

The Financial Ombudsman Service is set to increase its staffing levels by close to half by March 2013, rising from its top-end budget estimate for March of this year of 1,760 to 2,545.

In its plans and budgets for 2012 to 2013 consultation paper, Fos predicts that staff numbers will reach 1,890 by this coming March, seven per cent higher than the upper end of its budget for the financial year and 52 per cent up on the lower-end budgeted figure of 1,240.

Against this estimated figure, the rise in staff numbers expected over the next financial year would represent an increase of 35 per cent.

The Ombudsman has forecast an increase in the number of ombudsmen from the predicted figure of 90 for this March to 125 by March 2013, while front-line customer contact staff will rise from 150 to 220, adjudicators will jump from 1,490 to 2,000 and support staff will increase from 150 to 200.

In the paper Fos claims the increase was largely due to the handling of payment protection insurance cases, cases of which are set to rocket to 165,000 by March 2013.

Fos says it had already recruited and trained a “significant number” of new adjudicators and ombudsmen in 2011 to 2012.

However, Fos highlights that it was likely to have to increase or decrease the predicted numbers in response to changes in levels of demand throughout the year.

Fos claims the levels of demand it has forecast for 2012 to 2013 means it expects to be able to set an expenditure budget of around £197.6m.

In order to fund this, it has proposed to freeze the amount of the levy in the compulsory jurisdiction – as well as freezing the standard case fee in all three jurisdictions – for the third year running.

Some 80 per cent of the Fos’ cost base relates to staffing costs.

It has set aside £6m in its proposed budget for continuing investment, which includes: an increase in the number of ombudsmen; continuing and developing “e-enablement” programme; and further enhancing continuous improvement programme.