FSCS’s 2024/25 Annual Report highlights another strong year for recovering compensation costs and processing customer claims

The Financial Services Compensation Scheme (FSCS) continued to build on its strong foundations and strengthen its core capabilities during 2024/25.

A key milestone included the recovery of more than £56m from the estates of failed financial firms and related third parties – equivalent to 17% of total compensation costs. FSCS also increased its decisions on claims by 21% compared to the previous year, with customer satisfaction remaining high.

Among the report’s highlights:

Almost 12,000 decisions were processed through FSCS’s claims service. This included paying £176m in compensation to customers in relation to investments, pensions and financial advice;

FSCS made more than 12,500 payments to customers of failed insurers, with compensation totalling £134m; and

FSCS made more than 20,000 payments to customers of failed credit unions which totalled £17m in compensation.

In total, FSCS paid £327m in compensation to customers while enhancing its systems to benefit customers and the financial services sector. This included introducing a new electronic payments portal for deposit taker customers - helping some get their savings back within 24 hours of their firm entering insolvency.

Martyn Beauchamp, FSCS’s Chief Executive, said:

“At FSCS, we are focused on getting people and businesses back on track as quickly as possible when financial firms fail. I’m proud of our achievements over the course of the year. It highlights how vital our work is in building trust and confidence in financial services, and for promoting growth and stability in the UK’s wider economy.

“I am also particularly pleased that our duty to efficiently pay compensation to customers was matched equally by our responsibility to levy payers. In 2024/25, we secured more than £56m in recoveries from those responsible for causing financial harm to consumers. This takes us to over £110m over the past two years alone, with the majority used to offset future levy costs for firms.”

FSCS’s Annual Report and Class Statements are available to download as PDFs from the FSCS website.

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