| Link(s): | FSCS’s 2024/25 Annual Report | FSCS FSCS Annual Report 2024/25 | FSCS FSCS Annual Report and Accounts 2024-25 FSCS Class Statements 2024/25 |
Context
FSCS’s 2024/25 Annual Report highlights another strong year for recovering compensation costs and processing customer claims. A key milestone included the recovery of more than £56m from the estates of failed financial firms and related third parties – equivalent to 17% of total compensation costs. FSCS also increased its decisions on claims by 21% compared to the previous year, with customer satisfaction remaining high.
Key points to note and next actions
Among the report’s highlights:
Almost 12,000 decisions were processed through FSCS’s claims service. This included paying £176m in compensation to customers in relation to investments, pensions and financial advice
- FSCS made more than 12,500 payments to customers of failed insurers, with compensation totalling £134m.
- FSCS made more than 20,000 payments to customers of failed credit unions which totalled £17m in compensation.
- In total, FSCS paid £327m in compensation to customers while enhancing its systems to benefit customers and the financial services sector. This included introducing a new electronic payments portal for deposit taker customers – helping some get their savings back within 24 hours of their firm entering insolvency.
- In relation to general insurance distribution, there were no new firm failures for this class during 2024/25. The compensation that FSCS did pay out was in relation to legacy firm failures, and in total this came to approximately £0.7m. This is a slight increase of £0.1m on the compensation paid in 2023/24. No levies were raised for the General Insurance Distribution class in 2024/25 as surpluses, carried over from 2023/24, met the funding requirements for the year.
FSCS’s Annual Report and Accounts (which summarises the source of FSCS levies and how it has used these funds) and Class Statements (which explains how FSCS allocated the industry’s levy payments during the 2024/25 financial year) are available to download as PDFs.