On 10 January 2025, the Financial Conduct Authority, Prudential Regulation Authority and Bank of England jointly published Consultation Paper 25/1 ‘Financial Services Compensation Scheme – Management Expenses Levy Limit 2025/26’ (CP25/1).

In CP25/1 the regulators set out proposals for the Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2025/26. The MELL covers the FSCS’s costs of operating the UK’s statutory compensation scheme.

The regulators propose the MELL for 2025/26 will be £108.6m, made up of: (i) the FSCS management expenses budget of £103.6m; and (ii) an unlevied reserve of £5m. The regulators state that although the proposed MELL is higher in nominal terms than the 2024/25 MELL, it is lower in real terms.

The deadline for comments on CP25/1 is 7 February 2025.

CP25/1 is also supported by the FSCS January 2025 Budget Update.