Complaints and redress payments rise across wider financial services industry
Financial services firms in the UK recorded 1.85 million complaints in the first half of 2025, according to figures from the Financial Conduct Authority (FCA). However, complaints related to home finance products fell by 6% over the same period, dropping to 78,641 cases.
The data shows that while the broader financial services sector experienced a 4% increase in complaints compared to the previous half-year, home finance was among the few product groups to see a reduction. Since the first half of 2021, overall complaint numbers have remained between 1.7 million and 2 million.
Total redress paid by firms reached £283 million in the first half of 2025, a 20% rise from £236 million in the latter half of 2024. The average compensation payment climbed from £207 to £238. The proportion of complaints upheld by firms held steady at around 57%.
Banking and credit cards saw complaints increase by 7% to 899,861, with current account issues up 10% to 541,493, FCA figures further showed. Decumulation and pensions complaints rose by 6% to 94,035, including a 38% jump in trust-based pension complaints to 8,977. Investment complaints also increased by 10% to 58,303. Insurance and pure protection complaints edged down by 0.2% to 717,406.
“Given the scrutiny on consumer outcomes and fair treatment from the regulator, it is perhaps unsurprising that we are seeing increases in complaints,” said Phil Smith, senior actuarial consultant at financial services consultancy Broadstone. “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.”
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