FSCS Budget Update January 2025
You can read the full report below.
You can also read our Interim Chief Executive Martyn Beauchamp’s statement, to find out more about our plans for the year ahead.
Alongside this information, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are consulting on our 2025/26 proposed budget as part of their annual Management Expenses Levy Limit (MELL) consultation. The consultation closes on Friday 7 February 2025.
The latest management expenses forecast for 2024/25 is within budget
We expect to end this financial year within the original management expenses budget of £103.1m confirmed by the FCA and PRA.
The proposed management expenses budget for 2025/26 is £103.6m
To ensure we can carry out our statutory functions, including paying compensation to eligible customers and making recoveries, we are proposing a 2025/26 management expenses budget of £103.6m. This represents a 0.5% increase on the budget for 2024/25 and we have continued to make efficiencies to keep the overall increase below inflation.
The total levy forecast for 2025/26, which includes both the management expenses and estimated compensation payments, remains at £394m as forecast in last November’s Outlook.
We propose an unlevied reserve of £5m
The FCA and the PRA are consulting on an overall MELL of £108.6m for 2025/26. It includes the proposed budget of £103.6m and an unlevied reserve of £5m. This reserve ensures we can raise additional funds, if needed, to process a significant increase in claims for any unexpected firm failures.
Firms are only invoiced for this if necessary. This is unchanged from the unlevied reserve in 2024/25.
Full FSCS Budget Update report
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