FSCS lowers 2025/26 levy prediction to £356m

Figure is £38m lower than the indicative forecast from November

Jenna Brown
clock • 2 min read

The Financial Services Compensation Scheme (FSCS) has lowered its annual levy expectation for 2025/26 to £356m.

The total is £38m lower than the indicative forecast it shared in its November's Outlook. It explained that n 2024/25 the FSCS successfully recovered more than £56m, "which was higher than initially forecast. These recoveries have directly helped to reduce the levy". The FSCS said it expected to pay £332m in compensation to customers during 2025/26, £36m lower than previously forecast. It said the movement between its November forecast and the confirmed levy amount "is, in the main, due to lower compensation costs now forecast in the Life Distribution & Investment Intermediation cl...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA data information request: Four focus areas for advisers

FCA data information request: Four focus areas for advisers

‘Data is not just a compliance tool it’s a strategic asset’

Chris Davies
clock 07 July 2025 • 5 min read
FCA to extend bullying and harassment rules to non-banks

FCA to extend bullying and harassment rules to non-banks

Extension will apply to 37,000 firms

Cristian Angeloni
clock 02 July 2025 • 2 min read
Regulatory necessity: Why data is no longer a 'nice to have'

Regulatory necessity: Why data is no longer a 'nice to have'

Client-led, data-driven

Paul Bruns
clock 01 July 2025 • 5 min read