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Solicitors have demanded to know how the Legal Ombudsman intends to reduce the cost of its work to an all-time low at the same time that it is seeking extra funds to deal with an unexpected rise in complaints. Meanwhile, the Bar has urged LeO to investigate the reason behind a drop in the confidence lawyers have in the service.

The Office for Legal Complaints is to put in place a new performance plan for the Legal Ombudsman next year to tackle falling standards, it has emerged. Steve Green, chair of the OLC, promised things would be on an “upward trajectory” next year.

Staff working for the Legal Ombudsman will not have to repay hundreds of thousands of pounds of “irregular” benefits they received from their employer, it has been decided. Having sought advice from the Treasury Solicitor, its board agreed that “repayment should not be pursued”.

There is scope for the Legal Ombudsman (LeO) to offer redress to third parties, as long as the complaints involved could be “clearly and tightly defined”, a report by a LeO working party has found.

Ian Brack, formerly chief executive and chief accounting officer of the Olympic Lottery Distributor, has been appointed interim chief executive of the Legal Ombudsman in succession to Adam Sampson after his resignation last month.