BARCLAYS is still the UK's most complained-about bank after figures showed more than 250,000 new disputes were recorded in the first half of this year.

The league table based on figures from the Financial Services Authority (FSA) revealed Barclays received 251,563 complaints, followed by Lloyds TSB with 181,907 and Santander with 168,888.

Barclays also topped the chart during the second half of last year, with more than 205,000 complaints, although the banking giant pointed out that the latest figure was down 14% on the same period last year.

It has cut the number of complaints directly related to banking and said much of the rise was due to complaints relating to the mis-selling of payment protection insurance (PPI), an issue which has affected the whole sector.

Retail banking boss Antony Jenkins said: “We have made good progress in reducing complaints, with a substantial and sustainable reduction in banking complaints by nearly a third.

“However, there is much more to be done and we are working hard to further improve our service to our customers; putting them at the heart of our business and getting it right first time, every time.”

The FSA said the total number of complaints about controversial PPI surged by 23% to 531,667.

The insurance, which looks set to become the UK’s biggest ever mis-selling scandal, covers debt repayments if the holder is unable to work due to an accident or illness, or if they lose their job.

In May, the banking industry dropped its legal challenge over whether new FSA rules on PPI mis-selling claims could be applied retrospectively.

This means more than three million people are in line for compensation, with firms facing a total bill of up to £9bn.

The FSA said the proportion of complaints which were upheld also went up slightly from 49% in the final six months of last year to 50%.