Outlook November 2025
In this latest edition of Outlook, we provide an update for the 2025/26 levy as well as a first look at the 2026/27 levy forecast.
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 spring 2026.
The 2025/26 levy remains unchanged at £356m
- Compensation costs for the year are now forecast at £315m, a slight decrease from our May forecast of £332m.
- We have continued to make substantial recoveries and now expect to secure close to £40m by year-end.
- No additional levy is expected for this financial year.
The initial forecast for the 2026/27 levy is £342m
- Compensation costs are currently projected at £294m.
- Some funding classes are expected to start with lower opening balances, as prior year surpluses have been effectively used. This brings the levy forecast for these classes in closer alignment with projected compensation costs.
Full Outlook report
Outlook November 2025
Contains an update for 2025/26 as well as a first look at the 2026/27 forecasts.
Outlook archive
Copies of Outlook going back to 2015, downloadable in pdf format.
Further reading
Martyn Beauchamp's statement
Martyn reflects on the year so far and looks forward to the next.
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.