Levy Information

Levy limits

There are limits to the amounts FSCS can levy in a financial year. These are set out in the FCA Handbook and the PRA Rulebook in both cases at FEES 6 Annex 2. For compensation payments the limits for each sub-scheme are:

PRA classes

  • Deposits: £1,500m
  • Life and pensions provision: £690m
  • General insurance provision: £600m

FCA classes

  • Investment provision: £200m
  • General insurance intermediation: £300m
  • Life and pensions intermediation: £100m
  • Investment intermediation: £150m
  • Home finance intermediation: £40m
  • Debt management: £20m.

Any costs exceeding these thresholds for the FCA classes would trigger the retail pool and be shared more widely.

Where costs exceeded the threshold in one of the FCA classes made up of intermediaries, the FCA provider contribution classes would also pay toward the costs. The levy limits for the FCA provider contribution classes are:

  • Deposit acceptors: £110m
  • Life insurance: £70m
  • General insurance: £35m
  • Home finance providers and administrators: £45m

The management expenses levy is subject to an annual limit, following consultation with the industry by the UK regulators

Levy calculation

The amount levied for compensation payments is the amount of compensation paid plus an estimate of the compensation costs we expect to pay in the 12 months following the levy date, assumed to be 1 July each year, allowing for any retained fund balances. The management expenses levy is subject to an annual limit but is based on our budget requirements for each year.

In general we would expect to levy once a year. However, subject to the limits above, we may make additional levies during the year, if necessary.

Levies raised since 2009/10


FSCS levies are included on a single invoice covering PRA, FCA, FOS and FSCS fees, which is sent out by the FCA. The FCA has established arrangements for firms who wish to spread the costs of fees and levies. Details of these arrangements are available from the FCA.