This forecast sits lower than the £401m levied this year due to the announcement of three supplementary levies worth a total of £114m for 2016/17.

General insurers, life and pensions advisers, and home finance intermediaries will be asked for £63m, £36m and £15m respectively to meet unforeseen compensation costs.

Mark Neale, chief executive of the FSCS, said: “We recognise the costs impact on firms, particularly in the light of the supplementary levies announced today, of which we seek to give as much advance warning as possible.

“The Financial Services Compensation Scheme is there for people with nowhere else to turn when firms fail. So the £378m indicative levy represents the costs of protecting people.

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“That protection generates consumer confidence and contributes to financial stability.”

The FSCS revealed that it expects a drop in the number of new claims over the next year following a spike during 2016/17.

Meanwhile, interest costs for the outstanding bank legacy loan used to resolve Bradford & Bingley in 2008 is forecast at £302m. The levy will be £100m less due to recoveries against these costs.

The scheme will also spend £69m on management expenses, the cost of running the scheme and paying claims, up £1.8m from this year.

"The financial services industry funds the protection we provide,” Mark added.

“That's why we're concentrating on reducing our overheads and constantly seeking value for money in our work.

“We'll continue that drive in the coming year and will also realise benefits from our online claims system."