FSCS Annual Report shows over 14,000 customers compensated and more than £34m recovered from failed firms in 2025/26
The Financial Services Compensation Scheme (FSCS) paid over 14,000 individual customers, responded to major firm failures and recovered more than £34m in 2025/26. It also implemented the increased £120,000 deposit protection limit, protecting even more of people’s savings.
Today, FSCS publishes its Annual Report and Accounts for 2025/26, covering a year of strong delivery for customers and industry. The report sets out how FSCS has paid compensation and managed firm failures effectively, maintained focus on recoveries and cost control, and strengthened its readiness to respond at varying levels of demand.
Highlights from 2025/26 include:
- £267m paid across FSCS’s deposits, insurance, advice and investment services, with over 14,000 individual customers compensated;
- over £34m recovered from the estates of failed firms and relevant third parties, contributing to £145m over the last three years, helping to reduce costs for levy payers;
- close to 12,000 advice and investment claims resolved, maintaining high quality and customer satisfaction scores; and
- around 18,000 Premier Insurance Company Ltd policyholders supported to maintain continuity of cover or receive policy refunds when the firm failed.
The report also outlines FSCS’s response to key regulatory developments, including the increase in the deposit protection limit to £120,000 from December 2025. The limit for qualifying Temporary High Balances has also increased to £1.4m for up to six months. This means more savings are protected, providing greater reassurance to consumers.
During the year, FSCS set a new five-year strategy for 2026–31, outlining a disciplined, commercially grounded approach to delivering its statutory role. The strategy is focused around three priorities — building a scalable, cost‑efficient customer claims model, embedding a purpose and performance-led culture, and being a responsible steward of the levy.
Martyn Beauchamp, Chief Executive of FSCS, said:
“When firms fail, confidence matters. FSCS provides that confidence by helping people receive compensation as quickly as possible and maintain access to essential financial services. 85% of people who know about FSCS say it increases their trust in the financial system. That trust helps people make informed decisions about saving and investing.
Over the past year we delivered for customers when they needed us most, supporting those affected by firm failures, implementing the increased protection limit for savers and pursuing recoveries that help reduce costs for levy payers. Our new strategy builds on that momentum, setting a clear direction for the future. It strengthens our readiness and resilience and helps us make better use of data and technology. Working closely with regulators and industry, it ensures we continue to support financial stability by giving consumers confidence, continuity and compensation when firms fail.”
FSCS’s Annual Report and Class Statements are available to download as PDFs from the FSCS website.
Media enquiries
Contact: Farah Baldock
Email: publicrelations@fscs.org.uk
Tel: 07730 668 558