On 22 January 2021, the Financial Services Compensation Scheme (FSCS) published its plan and budget for 2021/22.
Highlights from the plan and budget include:
- The total levy for 2020/21 is £700m.
- The supplementary levy for 2020/21 will be £78m, of this £44.5m will be invoiced in early February.
- The FSCS expects for 2021 that there will be:
- Increase in failures due to the ongoing economic impacts related to COVID-19.
- Ongoing rise in complex pension advice claims.
- Further failures of self-invested personal pension operators.
- Increase in pay-outs for the insurance provision class.
In terms of next steps:
- February 2021 – firms will be invoiced for the 2020/21 supplementary levy.
- March 2021 – 1,000 largest regulatory fee payers are invoiced for advance payment of the 2021/22 levy.
- April / May 2021 – the 2021/22 indicative levy figures announced in the plan and budget for 2021/22 will be confirmed in the FSCS Outlook report.
- Summer 2021 – the 2021/22 invoices will be issued to all levy payers. Firms that have already made an advance payment will have their summer invoice offset against this.