PRA CP8/25 – Regulated fees and levies: Rates proposals for 2025/26

Update (22/07/25)

The PRA has published its PS10/25 – PRA annual fees consultation for 2025/26 – final policy statement.

• The PRA’s Total Funding Requirement (TFR) for 2025/26 is £350.2 million – a decrease of £3million/ 1%
• Small and medium-sized credit unions will benefit from reduced fees – A0 Minimum Fees fee block for small and medium-sized credit unions is £0 for 2025/26 fee year.
• The PRA has confirmed there is a £6.8 million surplus for 2024/25 – including £2.1 million from retained penalties.
• The £2.1 million benefit will be applied across all fee blocks, excluding those who incurred fines.

The Prudential Regulation Authority (PRA) has published its annual fees and levies consultation, which proposes the regulatory fees to be charged for the upcoming financial year. This briefing highlights the content of the consultation paper relevant to credit unions.

The fees quoted in this briefing are proposals published by the PRA in April 2025 and can be subject to change, with the final fee levels to be announced in July 2025 following stakeholder feedback on the proposals. Subsequently, ABCUL will respond to the annual PRA fees consultation on behalf of its membership. If you have any feedback on the proposed fee levels and structure, please share by getting in touch at advocacy@abcul.org by the close of business on 7 May.

Total Funding Requirement (TFR)

The PRA’s Total Funding Requirement (TFR) is the total figure it proposes to collect in fees from all firms it regulates. The PRA has proposed to reduce the TFR to £342.5 million for 2025/26, down £10.5 million from 2024/25 (£353.0 million). The proposed decrease in the overall fees to be collected from firms is 3%.

Proposed Fees for Credit Unions

The minimum periodic regulatory fees paid by credit unions have changed to levels shown in the table below. The level of minimum fee paid by credit unions is dependent on the credit union’s level of Modified Eligible Liabilities (MELs).

Modified Eligible Liabilities for credit unions is defined by the Bank of England as their United Kingdom business only, being deposits with the credit union (that is, its share capital) less than the credit union’s bank deposits (investments + cash at bank)

It is also projected in the proposal that all deposit-takers that pay the tariff-based regulatory fee will be returned a fee surplus for 2024/25. This will be returned to credit unions that pay a tariff rate fee during the 2025/26 fee year once the level of surplus is finalized.

Predicting Regulatory Fees Payable by your Credit Union

The fees quoted in this briefing are proposals published by the PRA in April 2025 and can be subject to change, with the final fee levels to be announced in July 2025. Credit unions can predict both PRA and FCA regulatory fees they will be due to pay based on the fees proposals for 2025/26 using the FCA fees calculator.