According to the Financial Services Compensation Scheme, the administrative expenses budget for the year to March next year will be 0.5% higher than the current budget to £103.6 million.
However, the body's industry levy will rise by 49% to £394m, as it “expects a reduction in the surplus”, it confirmed in its outlook at the start of November. 
“For the past two financial years, cash surpluses have meant that levies have fallen below compensation levels,” the group, which handles consumer claims against failed financial companies, said in a statement.
“This will not be the case in 2025/26 as the tax has been used up for most classes, resulting in an increase in the overall levy.”
FSCS Interim Chief Executive Martin Beecham said in today's update:
“We are also funding other important activities, including pursuing recoveries, investing to improve organizational efficiency, and driving consumer awareness of FSCS protection and our claims service, which is free to customers at the point of use.” We will provide it.”
Beauchamp added: “The complexity of claims, which currently makes up the majority of FSCS operations, can lead to increased costs and means claims often require more specialist resources and deeper investigations. I will.
“For example, the average amount of data we receive per claim has increased by 89% over the past two years.”
