The number of complaints received by financial services firms increased by 3.6% year-on-year in the first half of 2025, according to the UK regulator.
In the year to 30 June 2025, financial services firms notified the FCA of 1.85 million complaints, compared to 1.78 million in the first half of 2024.
However, the FCA noted that complaints have stayed relatively constant since the start of 2021 at between 1.7m and 2.0m.
Investments saw the biggest surge in complaint numbers, increasing 10.1% from 52,971 to 58,303, followed by banking and credit cards, with complaints increasing 7.2% from 839,526 to 899,861, and then decumulation and pensions, which saw an increase of 5.5% from 89,172 to 94,035.
The total amount of redress paid in 2025 H1 was £283m, up 20% on the £236m paid in H2 2024, with the average compensation payment rising from £207 to £238.
The percentage of complaints that were upheld by firms remained around 57% between 2024 H2 and 2025 H1.
Phil Smith, senior actuarial consultant at Broadstone, said it was “unsurprising” there has been an increase in complaints given the regulator’s scrutiny on consumer outcomes and fair treatment.
“With the number of complaints being upheld remaining consistently high as well as increases in both total and average compensation payments, it is clear that firms have work to do to ensure they are treating their customers fairly.
“Redress remains a costly outgoing for firms – as the ongoing motor finance case should be a reminder of – so it quite literally pays to treat customers well.”
