On 11 January 2024, the Prudential Regulation Authority (PRA) published Consultation Paper CP1/24 on the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2024/25.

In CP1/24, the PRA and the FCA set out the proposals for the FSCS MELL, which covers the FSCS’s costs of operating the UK’s statutory compensation scheme, for 2024/25. The proposals in the consultation paper are supported by the FSCS’s publication of its Budget Update for 2024/25.

The proposed MELL is £108.1 million for 2024/25, consisting of a management expenses budget of £103.1 million and an unlevied reserve of £5 million. The proposed MELL would apply from 1 April 2024, the start of the FSCS’s financial year, to 31 March 2025. This is a reduction of £1.7 million from the 2023/24 MELL of £109.8 million.

The consultation closes on 12 February 2024.