Outlook May 2025
Here's our latest update for the 2025/26 levy.
This information is accompanied by a message from our Chief Executive, Martyn Beauchamp.
Please see the full Outlook report below. Our next edition will be published in the autumn.
Levy update headlines
- We ended 2024/25 broadly in line with November’s forecasts for compensation.
- We also successfully recovered more than £56m from the estates of failed firms and relevant third parties during 2024/25. These recoveries reduce the levy for financial services firms, or they are distributed as additional payments to customers.
- The annual levy for 2025/26 is now £356m, £38m lower than November’s forecast.
- We currently expect to pay £332m in compensation to customers during 2025/26, £36m lower than November’s forecast. The majority of this change relates to lower compensation costs in the Life Distribution & Investment Intermediation (LDII) class, all other classes are broadly in line with November’s forecast.
Payment on account
All PRA and FCA-regulated firms will be sent an annual levy invoice in the summer.
We’ve already invoiced the largest levy-paying firms in early 2025 as payment on account for the 2025/26 levy. This will be deducted from their annual levy invoice.
Full Outlook report
Outlook May 2025
Contains an update about the 2025/26 levy.
Outlook archive
Copies of Outlook going back to 2015, downloadable in pdf format.
Further reading
Martyn Beauchamp's statement
Martyn reflects on the previous year and discusses 2025/26.
Podcast - How is FSCS funded?
Listen to further information on our levy and recoveries.
How we forecast the levy
Forecasting the cost of our annual levy is a complex task with many moving parts.
We'd love to hear what you think about how we're presenting this information. Please share your thoughts or suggestions with us here.
If you would like Outlook in an alternative format, please contact us.