The FSCS is funded by the financial services industry. Every firm authorised by the UK regulators is obliged to pay an annual levy, which goes towards the running costs and the compensation payments.

The FSCS published its plan and budget for 2016/7 in January 2016. The plan revealed details of a £363m indicative levy on firms for the period, forecasted the FSCS’s management costs falling by nearly £2m and highlighted internal organisational changes that aimed to improve the customer experience.