The Financial Services Compensation Scheme (FSCS) now expects to pay £372m in compensation during 2024/25, slightly higher than the £363m anticipated in May.
In its November 2024 Outlook statement, the lifeboat fund said the increase in expected compensation payment is mainly due to the progress on claims decision volumes. Interim CEO Martyn Beauchamp also confirmed that the 2024/25 levy remains as forecast in May 2024 at £265m. The FSCS' first total levy forecast for 2025/26 is £394m. This is currently based on compensation costs totalling approximately £367m in the 2025/26 financial year, which it said is "broadly flat" compared to 2024/25. "Alongside paying out compensation to customers, maximising recoveries from failed firms is a c...
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