The Financial Services Compensation Scheme (FSCS) has published its new five-year strategy for 2026-2031, outlining plans to strengthen its role as a 'cornerstone' of UK financial stability while delivering value for consumers and the wider financial services industry.

The strategy set out three core priorities: delivering timely and high-quality customer outcomes, embedding a strong purpose and performance-led culture, and ensuring value for consumers, industry and the broader financial system.

FSCS said the strategy was built on its statutory role of protecting customers when authorised financial services firms failed, aiming to provide compensation quickly and efficiently while maintaining confidence in the system.

It also emphasised its ambition to remain accessible and efficient for customers, while continuing to be valued by industry stakeholders.

Central to the strategy is the continued development of its customer claims model, which FSCS plans to make more scalable and resilient in response to fluctuating demand.

This includes improving how it handles advice claims and maintaining readiness to respond to failures across deposits and insurance markets, supported by enhanced use of technology and automation.

The organisation also highlighted plans to strengthen its internal culture, focusing on aligning purpose with high performance across teams.

This includes investing in workforce capability and embedding new ways of working to ensure the consistent delivery of customer outcomes over the next five years.

In addition, FSCS reaffirmed its commitment to acting as a responsible steward of levy payers’ funds, prioritising cost-effective operations and maximising recoveries to help offset compensation costs.

The strategy also outlined continued collaboration with regulators, government and industry, alongside increased international engagement to support financial stability.

FSCS chief executive, Martyn Beauchamp, said the new strategy reflected the organisation’s role in supporting confidence across the financial system.

“FSCS protection helps people feel confident to save and invest, with 76 per cent telling us they are more likely to do so when FSCS protection is available,” he stated.

“That confidence dividend delivers value beyond compensation alone - not just for consumers, but for the industry that funds our work and for the wider UK financial system.

“This strategy reaffirms our role in supporting financial stability by providing UK consumers with confidence, continuity and fair compensation when firms fail.”

FSCS chair, Elizabeth Passey, added that the scheme remained a “trusted safety net” for the financial system, supporting confidence, participation and orderly markets, while enabling competition and innovation to thrive.

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