On 26 March 2021, the PRA published Policy Statement 5/21: Financial Services Compensation Scheme – Management Expenses Levy Limit 2021/2022 (PS5/21). In PS5/21 the PRA provides feedback to responses to Consultation Paper 4/21: Financial Services Compensation Scheme – Management Expenses Levy Limit 2021/22. It also contains the final rules for the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2021/22. As consulted on for 2020/21 MELL is increasing by £22.4 million (16%) and there will be a different approach to the use of the unlevied reserve. Under this approach, the unlevied reserve will be used to cover management expenses in relation to both a portion of forecasted claims and unexpected increases in claims, as a result of the difficulty in accurately predicting claims volumes due to the uncertainty of the current economic climate.