FSCS levy of £265m significantly under forecast for 2024/25

This marks a significant drop from the £415m forecast in November , and a £5m reduction from the levy paid last year. The FSCS said the fall was partly due to its successful recovery of £54m from the estates of failed firms during 2023/24. Compensation expected to be paid this year stands at around £363m, the lifeboat fund said. The reduction in the overall figure also stems from lower average compensation forecasts, with the average compensation paid out for pension transfers last year around £35,000 – almost a 30% fall from the £45,000 of the previous financial year, FSCS interim...