FSCS forecasts levy drop to £247m in 2026/27

Compensation payments of £267m anticipated

Sophia Panayi
clock • 2 min read

The Financial Services Compensation Scheme has forecasted the 2026/27 levy to be £247m, with compensation payments of £267m anticipated during the year.

The FSCS' May 2026 Outlook stated this was due to a compensation environment that "continues to evolve, particularly for advice claims". Over the past year, the FSCS has seen "higher volumes of lower-value general investment claims, and fewer higher- value pensions and Self-Invested Personal Pension (SIPP) operator claims", it said. There has also been a higher proportion of rejected Section 27 claims where no compensation has been due. Initially, in November last year, the FSCS forecasted the total levy in 2026/27 at £342m, a slight decrease from the 2025/26 levy of £356m. In the ...

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