The Financial Services Compensation Scheme (FSCS) in the UK recently announced a projected management fee of £ 89.2 million for 2022/23 and £ 99.8 million for 23/24. This forecast fee includes the daily operating costs of FSCS and related claim processing costs.

In addition, the total collection for 2023/24, including management fees and estimated compensation, is still expected to be £ 478 million.

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority will consult on the 2023/24 total management fee tax limit (MELL) of £ 109.8 million, which includes the proposed FSCA management fee budget of £ 99.8 million and an undischarged reserve of £ 10 million.

Caroline Rainbird, CEO of FSCA, stated that the infrastructure and support costs for claims processing accounted for the largest proportion of budget management expenses in 2023/24, reaching 76% of the total budget, or £ 75.9 million. This fee can enable FSCS to perform its core functions and help customers return to normal as soon as possible.

The budget for 2023/24 has increased by 5% year-on-year. Caroline said, "Although we currently have a suitable team and system to handle claims and assist in recovery, the complexity of FSCA claims means that our costs will increase in the coming years