“We are particularly concerned about the changes surrounding the case fee announced in today’s publication. We do not believe any justification has been provided for a further rise in the case fee, following the increase introduced just last year. This has now increased by a third over the last two years.

“Not only are the FOS bringing in an increase in the case fee, but they are also applying this to all cases already in queue. Based on the reported backlog of cases, this stands to net the FOS nearly an additional £16m. This effectively rewards the FOS for inefficiency in not dealing with cases faster.

“We believe this year’s budget is indicative of the concerns we have had about the financial model of the FOS in recent years. With the Chief Executive due to leave in the coming weeks we believe this represents an opportunity for the Treasury to review the management of the organisation”.