Legal Ombudsman: Targets missed but getting better

The Legal Ombudsman (LeO) in Great Britain continues to grapple with significant operational pressures, as evidenced by its recent annual report which indicates a failure to meet key timeliness targets. Despite these shortfalls, the report highlights notable improvements in performance compared to previous periods, demonstrating resilience in the face of an unprecedented surge in new complaints. The ombudsman service is actively pursuing radical reforms to its scheme rules and operational processes to enhance efficiency and address the growing demand for its services, particularly in areas like residential conveyancing and personal injury. This article examines LeO's recent performance, the underlying challenges, and the strategic initiatives aimed at fostering a more effective and timely complaints resolution mechanism for the legal sector.

The Legal Ombudsman (LeO), the independent body tasked with resolving service complaints against legal professionals in England and Wales, has released its latest annual report, presenting a nuanced picture of its operational effectiveness. While the report acknowledges that LeO continued to miss its key timeliness targets over the past year, it simultaneously points to a discernible improvement in performance compared to the preceding 12 months. This development unfolds against a backdrop of escalating demand, with a substantial increase in new complaints referred to the service.

This article delves into the Legal Ombudsman's recent performance data, exploring the specific targets that remain unmet, the areas where progress has been made, and the persistent challenges it faces. It will also examine the strategic reforms being pursued by LeO to enhance its capacity and efficiency. For legal practitioners, understanding these dynamics is crucial, as LeO's operational health directly impacts the landscape of client complaint resolution and the broader regulatory environment for legal services in Great Britain.

The central thesis is that while the Legal Ombudsman is under considerable strain from a surging caseload and historical backlogs, its strategic focus on process improvements and early resolution is beginning to yield positive results, albeit with a long road ahead to consistently meet its ambitious timeliness benchmarks. The ongoing reforms are critical to ensuring LeO can fulfil its statutory mandate effectively and maintain public confidence in the legal complaints system.

The Legal Ombudsman was established under the Legal Services Act 2007 (LSA 2007) as an independent body to resolve disputes between consumers and legal service providers in England and Wales. It operates under the oversight of the Office for Legal Complaints (OLC), which acts as its board. LeO's primary role is to investigate complaints impartially and facilitate a fair resolution, focusing specifically on issues related to the quality of service provided by lawyers, rather than the correctness of legal advice or matters of negligence, which are typically reserved for the courts.

Before a complaint can be brought to LeO, consumers are generally required to first attempt to resolve the issue directly with their legal service provider, who has up to eight weeks to respond. If the internal complaint handling process is unsatisfactory or exceeds the stipulated timeframe, the complainant can then refer the matter to LeO. LeO's process involves an initial assessment of jurisdiction, followed by an investigation, with a strong emphasis on achieving an informal 'agreed outcome'. Should an informal resolution not be possible, an ombudsman will make a final determination. The Legal Services Act 2007 and the Scheme Rules, which guide LeO's operations, define who can complain, what can be complained about, and the procedures for handling and resolving complaints.

The Legal Ombudsman's latest annual report for 2025-26 reveals a mixed performance, characterised by persistent challenges in meeting timeliness targets alongside encouraging signs of improvement. LeO aims to resolve 80% of low-complexity complaints within 325 days, but only achieved 28% in the past year, although this was an increase from 24% in the previous year (2024-25). Similarly, for medium and high-complexity complaints, where the target is 80% resolution within 500 days, LeO managed 59% and 64% respectively, marking a significant improvement from 30% and 24% in 2024-25.

A primary driver of LeO's operational strain is the "unprecedented demand" for its services. The number of new complaints surged by 36% in the year to 31 March 2026, reaching 14,259, up from 10,447. While the total number of complaints resolved (8,199) was slightly lower than the previous year, the service has shown resilience in managing this increased volume. The backlog of cases awaiting assessment, a long-standing issue, saw a 16% reduction, yet still remained above target. This indicates that while LeO is processing cases more efficiently, the influx of new complaints continues to outpace its resolution capacity.

LeO's strategic shift towards early resolution has been a key factor in its improving performance. In 2023-24, 46% of all cases were resolved within 90 days, a substantial improvement from 41% in 2022-23 and a mere 11% in 2021-22. Cases resolved through early resolution typically conclude within 60 days, significantly reducing waiting times. This approach has helped to reduce the average waiting time for an investigation to approximately seven months by the end of 2023-24, a marked decrease from the peak of 16-24 months in 2022.

Analysis of complaint types reveals that residential conveyancing remains the largest source of discontent, accounting for 36% of complaints, followed by personal injury and wills and probate, each at 14%. The most common issues cited by consumers are poor communication (24%), delay and failure to progress (22%), and failure to advise (19%). LeO's findings indicate that poor service was identified in 69% of investigated cases, and inadequate in-house complaints handling by legal providers in 46% of cases, underscoring a systemic need for improvement within the legal profession.

Despite the improvements, challenges persist, including a higher cost per resolved case (£2,439 against a target of £2,065) and ongoing issues with staff attrition, partly due to external constraints on pay and benefits. In response, LeO has published plans for radical reform of its scheme rules, aiming to build a more agile and digitally enabled scheme. These reforms are crucial for LeO to transform its operations and meet future demands, fostering a culture of better complaints handling across the legal sector.

The Legal Ombudsman's latest annual report paints a picture of an organisation in transition, demonstrating tangible improvements in efficiency and resolution times while simultaneously contending with a burgeoning caseload and the inherent challenges of a public service. The strategic pivot towards early resolution and the commitment to digital transformation are clearly yielding positive results, reducing the burden on consumers and legal professionals alike. However, the continued failure to meet all timeliness targets, coupled with the significant increase in new complaints, highlights that the journey towards optimal performance is ongoing and requires sustained effort and adequate resourcing.

For legal practitioners, these findings underscore the critical importance of robust internal complaints handling procedures. Firms that effectively address client concerns at the first tier can significantly reduce the likelihood of escalation to LeO, thereby mitigating potential costs and reputational damage. Practitioners should closely monitor the proposed reforms to LeO's scheme rules and engage with the insights provided by the ombudsman service regarding common complaint themes. Proactive measures to improve client communication, manage expectations regarding timelines, and ensure transparent cost structures will not only enhance client satisfaction but also align with LeO's objectives of driving higher standards across the legal profession. The coming years will be crucial in observing the full impact of LeO's reforms and its ability to balance increasing demand with its mandate for timely and fair complaint resolution.