HM Treasury has published and laid before Parliament the Financial Services Compensation Scheme's 2025/26 Annual Report and Accounts and accompanying Class Statements, setting out FSCS's compensation activity, funding and operational changes over the year. FSCS paid GBP267 million in compensation to 14,113 customers across claims, deposits and insurance, declared 46 firms in default and paid compensation linked to 412 firms in total. The Class Statements show that an annual levy of GBP356 million was raised from firms for 2025/26, with no supplementary levy or retail pool required, while FSCS recovered GBP34.4 million from failed firms' estates to offset levy costs. Compensation remained concentrated in advice, pension and self-invested personal pension claims and in general insurance failures from prior years. The largest funding class by compensation was Life Distribution and Investment Intermediation at GBP125 million, followed by General Insurance Provision at GBP100 million and Investment Provision at GBP39 million. The report also highlights the October 2025 failure of Premier Insurance Company Ltd, where FSCS said it reduced disruption for around 18,000 customers, and the increase in deposit protection from GBP85,000 to GBP120,000 per person per authorised bank, building society or credit union from December 2025, with temporary high balance protection rising from GBP1 million to GBP1.4 million. During the year, FSCS launched a new five-year strategy effective from 1 April 2026, simplified its appeals process, reduced longer-running claims by about 48% and noted expanded responsibilities under the Bank Resolution Recapitalisation Act 2025, including creation of a new recapitalisation levy class with no transactions in 2025/26.

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