The Financial Services Compensation Scheme (FSCS) in the UK predicts a management fee of £ 89.2 million for 2022/23, which includes FSCS's daily operating costs and costs related to claims processing.

In addition, FSCS predicts an annual management expense budget of £ 99.8 million for 2023/24. The total collection amount for 2023/24, including management fees and estimated compensation payments, is estimated to be £ 478 million.

The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) will consult on the overall situation of the Management Fee Collection Cap (MELL) for 2023/24, including a proposed management fee budget of £ 99.8 million and an undischarged £ 10 million reserve.

Caroline Rainbird, Chief Executive Officer of FSCS, stated: "Claims processing infrastructure and support are the largest portion of the proposed management expenses for 2023/24, amounting to £ 75.9 million, or 76% of the total budget. This enables FSCS to fulfill its core functions and ensure that it helps customers return to normal life

The budget for 2023/24 has increased by 5% compared to the budget announced last year. Although we have a suitable team and system to handle claims and recoveries today, the claims filed with FSCS now are very complex, which means our costs may increase in the coming years