The Prudential Regulation Authority has published a consultation proposing amendments to the Fees Part of the PRA Rulebook for the 2025/26 fee year, covering new periodic fee rates, targeted cost allocations and changes to several application and special project charges. The proposals are based on an Annual Funding Requirement of £328.7 million for ongoing regulatory activities and a Total Funding Requirement of £342.5 million, a 3% decrease from 2024/25, with the ongoing regulatory activities budget noted as provisional pending final cost estimates. Key elements include a new £3.2 million cost allocation to fund the Future Banking Data programme, payable only by banks and building societies (fee block A1) and firms dealing as principal (fee block A10) and allocated in proportion to firms’ ongoing regulatory activities fees, with minimum-fee-only firms paying zero. The PRA also proposes CPI-linked increases (to December 2024) for internal model application fees, the model maintenance fee and Special Project Fee restructuring hourly rates, a reduction of minimum fees to £0 for small and medium-sized credit unions and small non-directive friendly societies (while retaining a £600 minimum fee for other firms), and an increase in the Type 3 new firm authorisation fee for most prospective deposit takers and insurers to £27,870 (from £25,000). The consultation also sets out a draft, unaudited £4.0 million 2024/25 surplus for allocation across fee blocks other than the minimum fee block, and notes that 2024/25 enforcement fines and penalties totalled £33.9 million, with £2.1 million included in the retained surplus calculation. Responses are requested by 9 May 2025, and the PRA proposes implementing changes resulting from the consultation on 2 July 2025.

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