Consultation opened
13/01/2026
Consultation closed
10/02/2026
Policy Statement published
31/03/2026
31/03/2026
We and the Prudential Regulation Authority (PRA) have confirmed the annual Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for the financial year 2026/27 will be £112,972,954.
The FCA and PRA are required to set a limit on the total management expenses that the FSCS can levy financial services firms.
The MELL covers the FSCS’s ongoing operating costs and includes the FSCS’s IT, staff, legal and outsourced and internal claims handling costs. It does not include compensation costs, which are levied separately and decided by the FSCS.
Setting the right MELL makes sure the FSCS has enough funding to carry out its functions. The MELL applies from 1 April 2026 until 31 March 2027.
For more detail on how the MELL is calculated and the FSCS unlevied reserve, see the policy statement[1] and the FSCS January 2026 budget update[2].
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