UK PRA and FCA Finalize FSCS MELL for 2026/27
Summary
The UK FCA and PRA published policy statements finalizing the FSCS Management Expenses Levy Limit (MELL) for 2026/27 at £113 million. This comprises £108 million for ongoing operating costs and £5 million unlevied reserve. The FSCS expects a £2.5 million underspend from the 2025/26 budget, which will offset levies for relevant classes in 2026/27. The MELL applies from 1 April 2026 through 31 March 2027.
What changed
The UK FCA and PRA have finalized the FSCS Management Expenses Levy Limit (MELL) for 2026/27 at £113 million, comprising a £108 million management expenses budget and £5 million unlevied reserve. The regulators largely maintained their January 2026 consultation position. The FSCS expects a £2.5 million underspend from 2025/26, which will offset levies for relevant classes when reconciled at year end.
Financial services firms regulated by the FCA and PRA, including banks, insurers, and financial advisers, should budget for FSCS levy contributions under the 2026/27 MELL. The levy applies from 1 April 2026 and represents a routine annual funding mechanism for the UK's investor and depositor compensation scheme.
What to do next
- Monitor for FSCS levy invoicing for 2026/27
- Budget for anticipated levy contributions
- Review prior year underspend offsets applied to your levy class
Archived snapshot
Apr 9, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
April 8, 2026
UK PRA And FCA Finalise The FSCS MELL For 2026/27
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The UK Financial Conduct Authority (FCA) and UK Prudential Regulation Authority (PRA) have published policy statements (PS26/4/PS8/26), finalising the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2026/27 following the January consultation. The regulators largely maintain the approach as consulted on, setting the MELL at GBP113 million. This comprises a GBP108m management expenses budget to cover the FSCS' ongoing operating costs and a GBP5m unlevied reserve, allowing the FSCS to meet unforeseen expenses without the need for further consultation.
In the January consultation, it was reported that the FSCS projected its management expenses to be GBP103.6m for the current financial year, in line with its budget. The FSCS has since revised its forecast and now expects a GBP2.5m underspend from the 2025/26 budget. Where actual expenses are lower than the budget when reconciled at year end, these funds will be used to offset the levy for the relevant classes in 2026/27. The MELL will apply from 1 April until 31 March 2027.
[View source.]
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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