On 12 March the Housing Ombudsman consulted on its business plan for 2024/25.  2023/24 has been another record year for complaints, with a 91% increase in the number of cases in the first 9 months, compared with the same period in 2022/23. Over the same period, the percentage of cases leading to a finding of maladministration rose from 59% to 72%, and compensation of £3.7 million was awarded, compared with £1.1 million for the whole of 2022/23. For 2024/25, the Ombudsman forecasts a further increase in the volume of cases of between 50% and 80%.

Proposed priorities for 2024/25 focus on improving local complaint handling so that more complaints are dealt with locally, bringing faster resolution for residents and less pressure on the Ombudsman Service. This will be achieved by ensuring landlords comply with the new Complaint Handling Code, including the new powers granted to the Ombudsman by the Social Housing (Regulation) Act, which give the Code statutory effect and grant the Ombudsman wider order-making powers.

More controversially, the Ombudsman is consulting on reforms to the fee regime it claims would incentivise better complaints handling. The consultation paper states:

“This could potentially be achieved by charging more per home to those who proportionately use our service more and have the highest maladministration rates, or a polluter pays model where both a membership fee and a cost per case are charged. In the year to date, we have dealt with complaints from 42% of our membership. It should be noted that any change to our fee regime would require the approval of the Secretary of State and HM Treasury.” 

In the interim the Ombudsman proposes to increase its fee for 2024/25 from £6.75 per property to £8.03.

The consultation closes on 5 April. ARCH will be submitting a response and is keen to hear the views of member authorities and tenant representatives on these proposals. Comments should be sent to Matthew Warburton, ARCH Policy Adviser (matthew.warburton@arch-housing.org.uk) by 28 March.