UK FSCS update on compensation levy for 2025/26 and early view forecast for 2026/27

The UK Financial Services Compensation Scheme (FSCS) has published its November 2025 Outlook newsletter, providing an update on compensation figures for the current financial year and an early view of the levy forecast for 2026/27. It confirms that the 2025/26 levy remains at GBP356 million, with no additional levies expected for firms. Compensation payments are forecast to decrease by 5% to GBP315m, primarily due to changes in the types of claims expected. Recoveries remain a priority, with GBP40m anticipated by year-end. An early forecast for 2026/27 indicates a levy of GBP342m (a slight decrease from 2025/26) based on compensation costs of GBP294m. The FSCS will publish a budget update in early 2026 detailing expected management expenses for 2026/27, which form part of the overall levy and are jointly consulted on by the UK Prudential Regulation Authority and UK Financial Conduct Authority. The final levy will be confirmed in May 2026.

Return to main website.