The Financial Services Compensation Scheme (FSCS) said it has continued to build on "strong foundations" and strengthen its core capabilities, after paying out £327m in compensation in the 2024/25 financial year.

In the year to 31 March 2025, the UK’s statutory compensation scheme recovered £56.2m from failed firms, equating to 17% of total compensation pay outs to customers.

The FSCS also paid out £176m in compensation in this period to customers in relation to investments, pensions and financial advice.

In the last financial year, it made more than 12,500 payments to customers of failed insurers and over 20,000 to customers of failed credit unions.

Across this period, the FSCS enhanced its systems to benefit customers and the financial services sector.

This included introducing a new electronic payments portal for deposit take customers, allowing for some to get their savings back with 24 hours of their firm entering insolvency.

Furthermore, it increased its decisions on claims by 21% year-on-year, with customer satisfaction reaching an average of 85% on the year to 31 March.

Chief executive at the FSCS, Martyn Beauchamp, said: "We are focused on getting people and businesses back on track as quickly as possible when financial firms fail. I’m proud of our achievements over the course of the year. It highlights how vital our work is in building trust and confidence in financial services, and for promoting growth and stability in the UK’s wider economy.

"I am also particularly pleased that our duty to efficiently pay compensation to customers was matched equally by our responsibility to levy payers. In 2024/25, we secured more than £56m in recoveries from those responsible for causing financial harm to consumers. This takes us to over £110m over the past two years alone, with the majority used to offset future levy costs for firms."

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