PRA CP7/26: Regulated Fees and Levies 2026/27 — A £17.4m Other Fees Line and the FBD Investment Explained
Credit: UKGI Compliance
The PRA's annual fee consultation reveals a £3.6m uplift in other fees, driven largely by the Future Banking Data programme, which every fee-paying firm needs to understand.
Context:
In April 2026, the PRA published Consultation Paper CP7/26, Regulated Fees and Levies: Rates Proposals for 2026/27. The consultation closes 15 May 2026. It is published alongside the PRA Business Plan 2026/27, which details the work the fees will fund.
The PRA's Annual Funding Requirement (AFR) for 2026/27 is composed of Ongoing Regulatory Activities (ORA) costs. The proposed Total Funding Requirement (TFR) for 2026/27 includes the AFR and other fees to industry. The headline figure is that other fees are expected to rise to £17.4 million, an increase of £3.6 million from 2025/26. The primary driver of this increase is the Future Banking Data (FBD) programme, which is allocated £6.8 million in 2026/27, an increase of £3.6 million from the prior year.
The FBD cost increase reflects the PRA's investment in reforming its strategic approach to banking regulatory data collection, as set out in DP1/26 (published February 2026). The FBD programme aims to deliver tangible cost reduction for firms in the medium term through rationalisation of templates and improved data processes but 2026/27 is an investment year, and firms will see higher fees before they see lower reporting costs.
The fee block allocation percentages for 2026/27 are unchanged from 2025/26. Firms are allocated to PRA fee blocks based on regulated activities for which they hold permissions, with costs allocated proportionately to reflect anticipated supervisory workload within each block.
Rules and Guidelines:
The fee consultation proposes amendments to the Fees Part of the PRA Rulebook for 2026/27. No structural changes to the fee-setting methodology are proposed; this is an annual cost-recovery exercise. The fee allocation methodology remains risk-based, with supervisory intensity varying by firm size, complexity, and systemic importance.
The PRA's fee blocks cover: deposit-taking institutions (banks and building societies), insurers (life, general, and specialist), and PRA-designated investment firms. The minimum fee block provides a proportionate floor for smaller regulated firms. Credit unions have a separate fee structure.
The consultation is a joint exercise with the FCA. The joint FCA/PRA consultation to amend invoice due dates for firms paying £50,000 or more in combined FCA and/or PRA fees per year is a related element. The FCA's parallel CP26/11 covers the FCA's own fee proposals for 2026/27. Both close in late April/early May 2026, with final rates expected before the July 2026 invoicing cycle.
Businesses Affected:
All PRA-regulated firms — banks, building societies, insurers, PRA-designated investment firms, and credit unions pay periodic fees to the PRA.
Finance directors, regulatory cost management teams, and CFOs who need to budget for PRA fee increases in 2026/27.
Firms subject to both PRA and FCA fees (dual-regulated) should review the joint invoice due date amendment proposals.
Credit unions, which have a distinct fee structure, should review the credit-union-specific provisions in CP7/26.
Next Steps:
Respond to CP7/26 by 15 May 2026 if your firm considers any proposed fee allocation or rate to be disproportionate or factually inaccurate. The consultation process allows firms to raise concerns about the basis for cost allocation.
Budget for the £17.4m other fees line in 2026/27 planning. The FBD investment cost will persist until the programme delivers its template rationalisation benefits likely in 2027/28 at the earliest.
Track the FBD programme (DP1/26 response expected post-May 2026) to understand when reporting cost reductions will materialise and flow through to lower fee requirements in future years.
Review the joint PRA/FCA invoice due date consultation for any firms paying £50,000+ in combined fees. Early payment changes may affect cash flow management.
Source | PRA | Regulated Fees and Levies
