FSCS cuts £1bn levy demand to £833m

Still £133m higher than last year

Jenna Brown
clock • 3 min read

The Financial Services Compensation Scheme (FSCS) has reduced its levy demand for 2021/22 by just over £200m to £833m.

It had originally been forecast at £1.04bn for the financial year in the organisation's plan and budget document released in January, a figure described by PIMFA as a "national scandal". The FSCS said it cut its levy demand for two main reasons - firstly that many firms set to fold in the coming year would likely limp on due to government support schemes. It said: "Some firms that looked likely to fail this year could now fail in the 2022/23 financial year and beyond." Secondly, the FSCS said it saw lower claims volumes relating to recent insurance failures than had been expected duri...

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