The Pensions Ombudsman (TPO) is set to expand its frontline casework teams and accelerate efforts to reduce its longstanding backlog after securing a new three-year funding settlement from the Department for Work and Pensions (DWP).

Publishing its corporate plan for 2026/27, TPO confirmed that the additional funding will support a 20 per cent increase in casework staff in 2026/27, alongside the creation of specialist teams to deal with complex and historic cases.

The funding follows a period of strong performance, with case closures rising by 14 per cent in 2025/26 and up 63 per cent compared to 2023/24, prior to the introduction of its Operating Model Review (OMR) programme.

Over the same period, demand for TPO’s services has also risen significantly, increasing by 58 per cent, highlighting continued pressure on the organisation.

TPO said the new settlement, covering 2026/27 to 2028/29, will support a sustained push to reduce waiting times for pension complaints, although it cautioned that tackling the backlog will take time, given ongoing demand.

The ombudsman plans to use the additional investment to grow its casework teams and establish dedicated units focused on resolving complex cases more efficiently, marking the start of a three-year recovery programme to reduce its historical caseload.

Alongside workforce expansion, TPO is also investing in technology, including launching an internal artificial intelligence (AI) pilot to help caseworkers progress cases more quickly.

However, it stressed that decision-making will remain based on professional judgement rather than automation.

Improvements are also being made to TPO’s online application process to help applicants better understand whether their complaint falls within its remit, with the aim of reducing invalid applications and easing demand pressures.

Commenting, TPO ombudsman, Dominic Harris, said early results from the OMR programme show “impressive” progress, with increased efficiency and higher case closure rates despite rising demand.

He added that the additional funding reflects “increased confidence” from government and stakeholders in TPO’s direction, while acknowledging that reducing the backlog will remain a challenge in the near term.

In addition to operational improvements, TPO said it will continue working closely with regulators and pension schemes to improve dispute resolution processes at scheme level, helping to resolve issues earlier and reduce the number of cases escalating to the ombudsman.

The corporate plan also outlines continued investment in digital transformation, staff training and stakeholder engagement, alongside efforts to use data and insight to drive improvements in pension scheme administration and complaint handling across the industry.

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