FSCS UK News

FSCS November 2025 Outlook: Compensation at £315m, 2026/27 Levy Forecast £342m

FSCS published its November 2025 Outlook providing updated compensation and levy forecasts for the 2025/26 and 2026/27 financial years. The 2025/26 levy remains at £356m with compensation expected at £315m (5% below May forecast), driven by more lower-value advice claims and fewer high-value SIPP operator claims. Early 2026/27 levy forecast is £342m based on £294m in projected compensation costs. Recovery efforts are anticipated to generate close to £40m by year-end 2025/26. The PRA and FCA jointly consult on FSCS management expenses, with a full Budget update due in early 2026.

FSCS Budget £103.6m, 2025/26 On Track; Proposes £113m Levy Limit for 2026/27

FSCS confirms it remains on track to be within its budget of £103.6m for 2025/26, with overall costs remaining flat and efficiencies being continually driven to deliver value for levy payers. For 2026/27, the PRA and FCA are consulting on a total Management Expenses Levy Limit of £113m, comprising a core budget of £97m plus an additional £11m for an enhanced revolving credit facility to support the Bank of England's new recapitalisation power for failing deposit takers. The additional £11m will be allocated to the Deposits class in proportion to each firm's level of protected deposits.

FSCS Warns of Scam Red Flags: Cold Calls, URN Requests, Upfront Payment Demands

FSCS published updated scam alert guidance identifying key red flags for financial services customers, including cold calls from non-FSCS numbers (0208..., 0330...), requests for Unique Reference Numbers (URN) or Customer Reference Numbers (CRN), and demands for upfront payments. The latest documented scam from 09 April 2026 involves fraudsters sending emails falsely claiming FSCS protects cryptoassets and charging fees to increase compensation levels. FSCS reiterates it is completely free to make a claim and never communicates via WhatsApp or asks for upfront fees.