Last year, the Financial Services Compensation Scheme (FSC) paid £327 million in compensation to customers.
Almost 12,000 decisions were processed through FSCS’s claim service, thus paying clients £176 million in investment, pension and financial advice.
More than 12,500 payments were made to customers of failed insurance companies, with a total compensation of £134 million.
The key milestone of the year was the recovery of more than £56 million from the legacy of failed financial companies and related third parties, accounting for 17% of the total compensation cost.
FSC’s claim decisions also increased by 21% compared to the previous year.
“At FSCS, we are focused on getting people and businesses back on track as soon as possible when financial companies fail,” said Martyn Beauchamp, CEO of FSCS.
“I am proud of what I have achieved in the year. It highlights the critical importance of our work in building trust and confidence in financial services and promoting growth and stability in the wider UK economy.”
These efforts are complemented by enhanced capabilities of their systems, including the introduction of a new electronic payment portal for deposit customer clients, which allows some to retrieve their savings within 24 hours of the company’s entry into unpaid debt.
Beauchamp also highlights FSCS’ commitment to the levy payers. He added: “I am also particularly pleased that our responsibility to pay compensation effectively to our clients is equal to our responsibility to the levy payer.”
“In 2024/25, we received over £56 million in recovery from those responsible for financial damage to consumers. This only took more than £110 million in the past two years, and most people used it to offset the future tax costs of the company.”
The FSC said the report highlights its continued efforts to strengthen its core capabilities and build trust in the financial services sector.
May, FSCS It will be levied for £38 million consultants this year.
