The Financial Services Compensation Scheme (FSCS), the industry-funded safety net for consumers, recovered £34m from failed firms in its 2025/2026 year and paid compensation to 14,000 people.
During the year it also increased its deposit protection limit to £120,000 although the investment protection limit remains at £85,000.
The figures are published in its Annual Report and Accounts for 2025/26, which reported that the FSCS had to deal with several failures at major firms during the year.
The report also reveals:
- £267m was paid across the FSCS’s deposits, insurance, advice and investment services
- Over £34m was recovered from the estates of failed firms and relevant third parties, contributing to a recovery of £145m over the last three years. The recoveries were used to reduce the FSCS levy on the industry;
- Close to 12,000 advice and investment claims were resolved
- Around 18,000 Premier Insurance Company Ltd policyholders supported to maintain continuity of cover or receive policy refunds when the firm failed.
Apart from increasing the deposit protection limit to £120,000 from December 2025, the limit for qualifying Temporary High Balances was also increased to £1.4m for up to six months.
During the year, the FSCS set a new five-year strategy for 2026–31. The strategy is focused on, "building a scalable, cost‑efficient customer claims model, embedding a purpose and performance-led culture and being a responsible steward of the levy."
Martyn Beauchamp, chief executive of FSCS, said: “When firms fail, confidence matters. FSCS provides that confidence by helping people receive compensation as quickly as possible and maintain access to essential financial services. Some 85% of people who know about FSCS say it increases their trust in the financial system. That trust helps people make informed decisions about saving and investing."
• FSCS’s Annual Report is available to download from the FSCS website.