Outlook May 2026
Here's our latest update for the 2026/27 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
- The annual levy for 2026/27 is now forecast at £247m.
- We currently expect to pay £267m in compensation to customers during 2026/27.
- We also successfully recovered more than £34m from the estates of failed firms and relevant third parties during 2025/26. These recoveries help reduce the levy for financial services firms, or they are distributed as additional payments to customers.
- The 2026/27 levy forecast reflects higher surpluses carried forward from the previous year, driven in part by lower-than-expected compensation costs.
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 2026 as payment on account for the 2026/27 levy. This will be deducted from their annual levy invoice.
Full Outlook report
Outlook May 2026
Contains an update about the 2026/27 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 2026/27.
How we forecast the levy
Forecasting the cost of our annual levy is a complex task with many moving parts.
How is FSCS funded?
Listen to further information on our levy and recoveries.
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