The FSCS has published its latest Outlook update, which includes its revised compensation and levy forecasts for 2023/2024.
The update confirms the FSCS has revised its levy forecast for 2023/24 to £270m.
While this is a reduction from their November 2022 initial estimates, the FSCS still anticipate paying £471m in compensation during 2023/2024, which places compensation costs above or close to £500m for the sixth consecutive year.
The FSCS provided that the forecast levy reduction is due to the carry over of an increased surplus from the 2022/23 levy, and an overall decrease to the compensation forecast for 2023/24 of £121m.
The FSCS continues to see firm failures of an increasingly complex nature, such as within the SIPP operator, ongoing claims management of insurance estates, and and defined-benefit pension advice areas.