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

Helped by £54m in recoveries

The Financial Services Compensation Scheme 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 2023, 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. FSCS warns industry levy set to rise to £415m for 2024/25 Compensation expected to be paid this year stands at around £363m, the scheme 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 fro...