The Financial Conduct Authority (FCA) has reported that financial services firms in the UK received 1.85 million complaints in the first half of 2025, marking a 4% rise from the 1.78 million recorded in the previous half-year.
Complaint volumes have remained relatively stable since the first half of 2021, fluctuating between 1.7 million and 2.0 million.
The total redress paid out by firms reached £283 million in 2025 H1, representing a 20% increase compared to £236 million in 2024 H2. The average compensation payment also rose, moving from £207 to £238. The proportion of complaints upheld by firms held steady at around 57% over the same period.
Banking and credit cards saw a 7% increase in complaints, rising from 839,526 in 2024 H2 to 899,861 in 2025 H1. Within this category, current account complaints rose by 10%, from 491,172 to 541,493 cases.
Decumulation and pensions complaints increased by 6%, reaching 94,035, with trust-based pensions complaints up 38% to 8,977. Investment-related complaints also climbed, up 10% to 58,303.
Conversely, home finance complaints fell by 6% to 78,641, while insurance and pure protection complaints edged down by 0.2% to 717,406. Among the most complained about products, current accounts saw a 10% increase, while credit card complaints dropped by 2.4%. Motor and transport complaints remained largely unchanged, with a 0.2% increase.
The FCA noted that figures for previous years may have been revised due to firms re-submitting their data.
In parallel with the rise in complaints, the insurance sector is contending with a surge in impersonation scams. The FCA has reported nearly 5,000 such incidents in the first half of 2025, many of which have targeted older individuals through fraudsters posing as the FCA or other trusted organisations.
With these rising threats, the Insurance Fraud Bureau (IFB) has responded by launching a five-year anti-fraud strategy, “Connected to Protect,” which aims to improve data sharing, strengthen industry ties, and raise public awareness of insurance fraud.
Phil Smith, senior actuarial consultant at Broadstone, said, “Given the scrutiny on consumer outcomes and fair treatment from the regulator, it is perhaps unsurprising that we are seeing increases in complaints.”
He added that with the number of complaints being upheld remaining high and increases in both total and average compensation payments, firms have work to do to ensure fair treatment of customers.
Smith also noted that redress remains a significant expense for firms, referencing the ongoing motor finance case as a reminder that “it quite literally pays to treat customers well.”
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