On 18 November 2024, the Financial Services Compensation Scheme (FSCS) published its Outlook Report for November 2024 and a related statement.

The Outlook Report provides an update on compensation figures and the associated levy for 2024/25 as well as a first look at the 2025/26 forecast. Points to note from the Outlook Report include:

• The FSCS’s transition to a new operating model for claims management, which involves bringing the majority of its claims management inhouse, is progressing well and is on schedule to be fully embedded in the 2025/26 financial year.

• Over two-thirds of its advice claims are now considered highly complex, doubling from one third a few years ago. The FSCS flags that it is continually working to identify areas where it can optimise the time taken to complete a claim without significantly increasing costs.

• The FSCS now expects to pay slightly more compensation during 2024/25 than it anticipated in May. However, it has continued to secure substantial recoveries from failed firms and is now expecting to recover almost double against its forecast in May.