It has been announced that the Financial Ombudsman Service (FOS) are to take on a third more staff during 2012 to cope with increased work. As claims for missold Payment Protection Insurance (PPI) continue to rise, the service will have to increase their staff by 35 per cent to cope with the ever-heightening numbers of cases.

Over the next year, the FOS will increase its current 1,890 workforce to 2,545. Missold PPI cases continue to flood in, with staffing levels unable to deal with the large amount of claims that are being noted. With banking institutions offering higher pay packages for FOS contractors who take on missold PPI cases, staff turnover and business activity have boomed.

Explaining the need for recruitment, the FOS said “We have found it challenging to compete against the remuneration packages offered by some of those businesses. The higher levels of adjudicator turnover during 2011/12 have added to our recruitment and operational challenges.”

PPI continues to take the limelight due to the huge number of people affected by the misselling scandal. With hundreds of thousands of British consumers urged to claim back compensation and premium repayments that are legally theirs, the system has become flooded with claims and complaints against financial institutions. This has led to the FOS being overwhelmed by work, with staffing costs in 2012/13 expected to jump to £149.4m, increasing their overall budget for the year by a significant 75 per cent.

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