On 12 January 2022, the Financial Services Compensation Scheme (FSCS) published its budget update which sets out its running costs for 2022/23. The FSCS anticipates needing annual management expenses of £95.5m and the total levy (including both management expenses and compensation costs) for 2022/23 is £900m. The PRA and FCA are consulting on an overall Management Expenses Levy Limit of £110.5m. This includes an unlevied reserve of £15m but it is only invoiced to firms and used if necessary. The FSCS also presented its running costs for 2021/22 of £85.3m. Any budget surplus (currently £5.2m) will be used to offset the 2022/23 levy for financial services firms.
