Legal Ombudsman fees could see firms pay out for spurious complaints, warns CILEX

3 September 2026

Legal Ombudsman (LeO) plans to introduce tiered case fees of up to £1,500 could see firms make unmerited payments to clients to avoid escalating costs, CILEX (The Chartered Institute of Legal Executives) has warned.

Currently, LeO charges a case fee of £400 when a complaint goes against the lawyer and they did not take all reasonable steps to resolve it themselves at first tier.

New proposals aimed at reducing demand for LeO’s services and implementing a ‘polluter pays’ approach would see all cases liable for a case fee unless a new waiver test is met. Firms would be required to pay £200, £750 or £1,500 depending on the stage at which the complaint is resolved, unless it is both resolved in the lawyer’s favour or otherwise dismissed by LeO, and LeO is satisfied that the service provider took all reasonable steps to resolve the complaint at first tier.

Responding to LeO’s consultation on this and other rule changes, CILEX said that although it approves of the ‘polluter pays’ approach and considers the changes likely to incentivise improved complaint handling, it fears tiered fees could reduce the number of complaints reaching the ombudsman, with firms agreeing to pay consumers who were not entitled to redress.

Members considered the early-stage case fee of £200 to be reasonable but the £750 fee for post-investigation resolution too high. The £1,500 fee to be paid out after an ombudsman decision would need to “demonstrate the value for money of the charge” to be justified.

CILEX supports complainants being required to show evidence of detriment for their complaint to be accepted, which would reduce vexatious or unmeritorious claims, but does not want to see a requirement for serious detriment, which could see more minor but warranted complaints denied a hearing.

It agreed there should be a time limit of 12 months from the complainant having knowledge of the issue but wants to see a long-stop exceeding the proposed 12 years to ensure those dealing with the fall-out out from poor service relating to wills or property advice further down the line are still able to make complaints.

CILEX welcomed proposals for the publication of final decisions, saying this would “encourage transparency and better consumer choice, whilst also acting as a deterrent for poor service or complaints handling from providers”.

Once implemented, the rules governing the complaints process should be consistent and not revised again should demand drop, with the ability to meet changes in the volume of complaints “derived from LeO’s financial underpinnings and resourcing, not from the rules”.

CILEX President Sara Fowler commented: “CILEX agrees that those firms providing a poor service and failing to resolve legitimate complaints at an early stage should bear the financial burden of resolving them. That said, CILEX has concerns about firms being driven to make unwarranted payments over fears that a complaint going to the ombudsman will prove even more costly. CILEX would like to see proportionate case fees and a fair process that mitigates against that possibility.

“While we expect the proposals to reduce the number of unmerited and vexatious complaints, it is important that we ensure more minor complaints still get a fair hearing and that consumers have the right to complain, even when issues with the service provided do not come to light until many years after the event.”

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ENDS

For further information, please contact:

Louise Eckersley, Black Letter Communications on 07525 756 599 or email [email protected]

Notes to editors:

CILEX (The Chartered Institute of Legal Executives) is one of the three main professional bodies covering the legal profession in England and Wales. The approximately 17,000-strong membership is made up of CILEX Lawyers, Chartered Legal Executives, paralegals and other legal professionals.

CILEX pioneered the non-university route into law and recently launched the CILEX Professional Qualification (CPQ), a new approach to on-the-job training that marries legal knowledge with the practical skills, behaviours and commercial awareness needed by lawyers in the 2020s.

The CPQ is a progressive qualification framework that creates a workforce of specialist legal professionals, providing a career ladder from Paralegal through to Advanced Paralegal and ultimately full qualification as a CILEX Lawyer. CILEX Lawyers can become partners in law firms, coroners, judges or advocates in open court.

CILEX members come from more diverse backgrounds than other parts of the legal profession:

• 76% of its lawyers are women
• 16% are from ethnic minority backgrounds
  • 8% are Asian or Asian British
  • 5% are Black or Black British
  • 3% are from a mixed ethnic background
• 77% attended state schools
• 63% come from families where neither parent attended university
• Only 3% of its members have a parent who is a lawyer.

CILEX members are regulated through an independent body, CILEx Regulation. It is the only regulator covering paralegals.