| Link(s): | FSCS confirms annual levy for 2024/25 is £265m | FSCS Outlook May 2024 | FSCS FSCS Outlook May 2024 |
Context
FSCS has published its latest update on the annual levy for 2024/25. The total levy payable by firms for the 2024/25 financial year is now £265m, which is lower than the indicative levy announced in the November 2023 Outlook and is a small decrease from the final 2023/24 levy of £270m.
Key points to note and next actions
The Levy updates are:
- The annual levy for 2024/25 is now £265m.
- FSCS currently expects to pay £363m in compensation to customers during 2024/25.
- FSCS successfully recovered more than £54m from the estates of failed firms and other relevant third parties during 2023/24.
- No retail pool levy is anticipated in 2024/25 as no class is expected to breach its annual levy limit during the year.
- There will be no levy for the General Insurance Distribution class, due to the surplus carried over from 2023/24 into 2024/25 being deemed sufficient for anticipated compensation payments.
All PRA and FCA regulated firms will be sent an annual levy invoice in summer 2024.