Plan and Budget 2011/12 published

2nd February 2011

Rising PPI claims driving costs for 2011/12

The Financial Services Compensation Scheme (FSCS) has today published its Plan and Budget: 2011/12, which provides its first indicative estimates of its levies on financial services firms for the coming year.

The document provides the Scheme’s initial assumptions for likely future claims volumes and recoveries across the full range of the FSCS’s work. The FSCS says PPI claims are likely to increase to about 20,000 in the coming year. Claims from high-profile investment failures such as Keydata are likely to fall away, and could total about 2,500 claims according to the Scheme.