On 9 November 2023, the Financial Services Compensation Scheme (FSCS) published its Outlook for November 2023, in which it provides an update on the 2023/34 levy as well as a first look at the 2024/25 forecast.

In its report, the FSCS highlights the following:

  • The 2023/24 levy remains unchanged at £270m.
  • The current forecast for the next financial year is £415m. This figure is indicative and subject to change, and is based on the FSCS’ expected compensation costs totalling approximately £457m during 2024/25.

The FSCS notes that it continually reviews its forecasting and will keep firms informed of any major developments that may impact the levy.