Regulators publish FSCS management expenses levy limit 2025/26

The PRA has published a policy statement setting out the Management Expenses Levy Limit (MELL) for the FSCS in 2025/26.

The MELL for 2025/26 will be taken forward as proposed, namely £108.6m to include:

• the FSCS management expenses budget of £103.6m;
• an unlevied reserve of £5m.

At the point of consultation, the FSCS projected an underspend of approximately £1.7m for 2024/25 compared with the management expenses budget of £103.1m. Since that time, the FSCS has confirmed that the projected underspend is now £2.8m. If this underspend occurs, these funds will be used to offset the levy for the relevant classes in 2025/26.