The Financial Services Compensation Scheme (FSCS) has awarded PwC the contract for its core claims service following a competitive procurement process.

The new contract is a “key part” of the FSCS’s new hybrid operating system, whereby the scheme will increase the proportion of claims processed in house.

Its current claims handling contracts will end on 31 March 2025.

Between now and that date, the FSCS said it would be working closely with PwC and its current claims partners to ensure a “seamless transition” for customers using the claims service.

It is expected that PwC will begin handling FSCS claims this autumn as part of a phased transition plan.

The announcement of PwC as the scheme’s core claims service partner marks the second ‘milestone’ of this transition, following the opening of a new customer contact centre at the FSCS’s London office in April.

FSCS interim CEO, Martyn Beauchamp, described PwC’s appointment as a “major milestone” in its transition to a new operating model.

“We’ve been through a rigorous procurement process to ensure that the partner we’ve chosen is the right fit for FSCS,” he stated.

“We’re confident the team at PwC have the capability and expertise to help us run a high-performing compensation scheme that is effective for our customers and good value for the levy payers who fund our service.”

FSCS chief customer officer, Sarah Marin, explained that the scheme’s core claims service was the largest part of its operation, and is where some of the FSCS’s most complex claims for pensions and investments are handled.

“Alongside our larger in-house team, working with PwC will give us the flexibility we need to handle the variety and volume of claims that now come to us,” she continued.

“PwC impressed us with their commitment to customer experience and their plans for the transition. The team and I are really looking forward to working with them going forward.”

Also commenting on the announcement, PwC partner and leader of operations transformation, Phil Raines, said: "We’re delighted to have been awarded the core claims service with FSCS.

"The critical service FSCS provides to consumers is essential to building confidence in the financial services industry in the UK and we look forward to working with the team to help them continue to deliver great outcomes for their customers.”

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