Half a billion paid out in compensation: FSCS

It says that approximately 132,000 claims decisions were made in total, with payouts concerning 1,614 different firms, 66 of which failed in 2021/22.

Total compensation costs within the time span ran to £584m.

In the home finance intermediation class, total compensation paid out fell from £1.7m in 2020/21 to less than £1m in 2021/22.

“This was because t. were no new failures and associated claims made for this class,” details the report.

Of the 52 decisions upheld of the 397 new claims made in 2021/22, all were related to failures in previous financial years.

Levies received rose from £3.6m to £5.4m, leaving a closing surplus of £8.7m in this class.

FSCS chief executive Caroline Rainbird says: “I am pleased to report that for the second year in a row, we achieved record levels of customer satisfaction. Our customers are at the heart of everything we do and we are continuously striving to improve our customer experience.

“It is worth noting that the compensation we paid to customers during the past financial year does not represent the full amount of financial harm being experienced. T. were £214m in losses that we could not compensate customers for, due to our limit, which is currently £85,000 for most claims.

“We also cannot compensate for the emotional loss associated with financial harm which can be devastating. Preventing this harm from occurring in the first place remains the best way to address this issue and improve outcomes for consumers.”