The Pensions Ombudsman is funded by the Department for Work and Pensions, with the money recovered from a levy on pension schemes. It is free to use.
That answers who funds the pension ombudsman, but most readers want to know whether it can help with a problem of their own. It looks into complaints about how occupational and personal pension schemes are run, once you have been through the scheme’s own complaints process. Unsure whether yours is a workplace scheme or a personal plan, which decides where a complaint starts? An FCA-authorised adviser will untangle which of the two you hold; booking that call costs nothing, using the form on this page.
Who funds the Pensions Ombudsman?
The Ombudsman’s annual report for 2025/26, ordered to be printed by the House of Commons on 9 July 2026, says it is “a non-departmental public body” and is “funded by the Department for Work and Pensions (DWP)”. The grant-in-aid “is recovered from the general levy on pension schemes that is administered by The Pensions Regulator”. So schemes pay through a levy, not the people who complain.
The report gives the amounts: £13.41 million of grant-in-aid in 2025/26, against £12.25 million in 2024/25, and it says the organisation “is funded solely from the general levy”. The Regulator that runs the levy is a separate body; who regulates what in UK pensions sets them side by side.
Who is the Pensions Ombudsman, and is it independent?
The title belongs to a person as well as an organisation. The Ombudsman and a Deputy are appointed by the Secretary of State for Work and Pensions, and “only an Ombudsman can make a final and binding decision on a case”. On 1 November 2026 the organisation’s site named Dominic Harris, appointed with effect from 16 January 2023 for a term of five years.
The law behind it is the Pension Schemes Act 1993 (Part X). It describes itself as “completely independent and impartial”, and it is not a regulator: it cannot change the law, make wider changes to the pensions industry, or fine or punish organisations.
Which pension complaints can the Ombudsman look at?
It investigates complaints about how occupational or personal pension schemes are run, where the dispute cannot be resolved between the parties. That includes:
- taking too long to act without good reason
- failing to do something they should have
- not following their own rules or the law
- giving incorrect or misleading information
- not making a decision properly
It may help if this has had a significant consequence, such as a financial loss, or significant distress or inconvenience. A fall in an invested pot is not in itself maladministration, because the value of investments can fall as well as rise and you may get back less than you put in.
Outside its reach are State Pension complaints (DWP deals with those; see the State Pension guide), tracing a lost pension, complaints about the sale or marketing of pensions or about financial advisers, schemes based overseas, and matters already with a court or employment tribunal. It is also unlikely to act where another body, such as the Financial Services Compensation Scheme, has compensated you or may do so; can you lose your pension? covers those safety nets. A grievance can sit between a scheme failing and the advice behind a purchase, and an adviser can untangle which it is with you; your request goes in via the form on this page.
Who can complain to the Pensions Ombudsman?
Members, former members and people who think they should be members can, as can anyone entitled to benefits from someone else’s pension, for example after a divorce or the death of a member. You must be 18 or over, but a parent or guardian can complain for a younger person. You can ask a family member or friend to be your representative; power of attorney and pensions covers formal authority.
The service is designed so that you do not need professional help. You may appoint a solicitor or claims management company, but even an upheld complaint is unlikely to get the cost repaid, and a claims firm will charge you. It cannot take a complaint from a group, though where all parties agree it may ask the group to nominate one person as a lead case.
How do you complain about your pension?
There are three steps, in order. First, most problems can be sorted out informally, so raise it with the employer, trustees, managers or administrator concerned. MoneyHelper has guidance on common pension problems, and free pension help lists where else to ask.
Second, complain formally in writing, saying clearly that it is a formal complaint, to each party you think is at fault. Occupational schemes should offer an Internal Dispute Resolution Procedure (IDRP). Give your full name and date of birth, a scheme reference, payroll or National Insurance number, what happened and how it affected you, and what you would like done. IDRP is usually two stages, and in general each can take up to four months. A personal pension follows the provider’s own process; ask for a written response. If the problem is missing money, late or unpaid contributions has the steps first.
Third, if you are unhappy with the final response you may be able to apply to the Ombudsman, generally within three years of the event or, if later, of when you became aware, or should reasonably have become aware, of the problem. If you never reach a final response, limited exceptions cover a party that refuses to engage or overruns the allowed time without a reason, and you will need evidence of your efforts.
What happens after you apply, and how long does it take?
There are four stages: a review of your application, an investigation by an Adjudicator or Resolution Specialist, their view or a resolution, and, if any party disagrees with a written decision, a final Determination by an Ombudsman. The Ombudsman says it will normally validate a complaint within one month, that complaints with a clear outcome are likely to be resolved within 18 months, and that those needing formal investigation are likely to take more than 18 months, all indicative. You can ask for prioritisation in exceptional circumstances such as severe financial hardship, serious or life-limiting ill health, or bereavement, with evidence.
If you lost out, it will try to put you back in the position you would have been in if everything had been handled correctly. If a scheme did not follow its decision-making process, say on a death benefit (how death benefits work), it can direct the process to be redone but will not generally direct a different decision. There is no financial limit on the value of an award.
A Determination is binding and enforceable in court, and can only be challenged by appeal to the courts on a point of law. In England and Wales you must lodge the appeal within 28 days after its date, and the High Court’s permission is needed. In Scotland you first write to the Ombudsman within 14 days; Northern Ireland has different limits.
More questions about complaining to the Ombudsman
Can it look at a Pension Protection Fund decision?
Yes. It also acts as the Pension Protection Fund Ombudsman and can help with a complaint about a decision made by the Pension Protection Fund or the Financial Assistance Scheme, under different rules and through a separate application. How the PPF works explains the scheme itself.
Is it the same as the Financial Ombudsman Service?
No. Sales, marketing and adviser complaints belong with the Financial Ombudsman Service, while the Pensions Ombudsman looks at how a scheme is run.
Can I complain from abroad?
Yes, if your scheme or provider is based in the UK, wherever you live. Overseas schemes are outside its remit.
What if the scheme ignores my complaint?
The exception for a party that refuses to engage or overruns without a reason applies only if you are unlikely to finish the process yourself, so keep records of every chase.
Before you write that first letter
A clear, dated account helps at every stage. Want the dispute talked through first? An FCA-authorised adviser can discuss where your complaint stands in a call that costs you nothing; request it ahead of any formal letter with the form on this page, or you can go straight to The Pensions Ombudsman, Submit a complaint.
Sources, read 29 October and 1 November 2026: The Pensions Ombudsman, About us, Who we are, What we can and cannot do, Who can complain to TPO, How to complain about a pension problem, How we handle complaints, Submit a complaint and How to appeal; Pensions Ombudsman and Pension Protection Fund Ombudsman, Annual Report and Accounts 2025/26 (HC 405, GOV.UK).