During H1 2025, financial services firms received 1.85m complaints, a 4% increase from 2024 H2 (1.78m).
This is according to data released by the Financial Conduct Authority, which also said total amount of redress paid in 2025 H1 was £283m, a 20% increase on the 2024 H2 figure of £236m, with the average compensation payment rising from £207 to £238.
However, since 2021 H1, complaints have stayed relatively constant between 1.7m and 2m. Similarly, the percentage of complaints that were upheld by firms remained around 57% between 2024 H2 and 2025 H1.
Complaints issued saw rises in banking and credit cards by 7% to 899,861, decumulation & pensions by 6% to 94,035 and investments by 10% to 58,303.
Two areas that witnessed a decrease were home finance by 6% to 78,641 and insurance & pure protection by 0.2% to 717,406.
Broadstone senior actuarial consultant Phil Smith said: “Given the scrutiny on consumer outcomes and fair treatment from the regulator, it is perhaps unsurprising that we are seeing increases in complaints.
“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.”
In 2024, the FCA released data which recorded a 40% increase in non-financial misconduct complaints including bullying, sexual harassment and discrimination in 2023.
The findings were from the FCA’s survey, which looks at how investment banks, brokers and wholesale insurance firms record and manage allegations of non-financial misconduct.
The survey of over 1,000 firms found that the number of allegations reported increased between 2021 and 2023.
Firms reported 1,363 incidents in 2021, another 1,670 in 2022, and a further rise in complaints to 2,347 in 2023.
In the three years covered by the survey, bullying and harassment (26%) and discrimination (23%) were the most recorded concerns.
