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

'This will change our forecasts and could result in further surpluses'

Cristian Angeloni
clock • 2 min read

The Financial Services Compensation Scheme (FSCS) has revealed its annual levy for the 2024/25 financial year will be £265m.

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...

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