FOS redundancy total set to swell as axe falls across organisation

The Financial Ombudsman Service is ploughing ahead with redundancy plans, with the axe set to fall across the organisation, Money Marketing has learned.

Earlier this month, Money Marketing revealed that FOS was looking to make 150 staff redundant, despite a complaints backlog.

An insider now tells us that, in the face of opposition, FOS is driving forward with the plans, and that the number of employees facing redundancy could now be even higher.

Areas where redundancies are set to take place include: 100 out of 375 adjudicators; five out of 12 lead adjudicators; two out of six casework coordinators; one out of two quality and service improvement managers; six out of 14 service improvement partners; one quality and service improvement team coordinator; 35 out of 76 team manager;  nine out of 12 heads of casework teams; one head of casework operations and one head of mass claims support.

This could bring the redundancy total up to 239.

Money Marketing understands that all roles ,including 78 ombudsmen, will be placed onto new employment terms.

FOS said it could not comment on specific numbers, but stated that the consultation period is underway, and decisions will be made at the end of that.

It confirmed that it was looking at shaving around 150 off its headcount.

This comes as last week, FOS came under fire after being slammed as “unfit for purpose” in a damning report by the Institute of Economic Affairs thinktank.

The same day, FOS published its budget for 2021/22 ,which outlined that staff-related costs had already fallen to £158.1m, down from £163.1m, ahead of the coming redundancies.

Meanwhile, the search for a replacement for chief executive Caroline Wayman, who stepped down on 10 March, is still underway.

Her last day at the adjudicator is set to be 16 April, just five weeks after the announcement of her resignation.

FOS has also appointed two new board members in the meantime; former Royal Mail chief information officer Ruth Leak and former Axa, Allianz and Legal and General director Jacob Abboud.