The FSCS has set its 2005/06 levy at £160.7m, a reduction on its £42m on January forecast and £77m down from the 2004/05 figure.
This levy excludes funding for potential split claims due to the uncertainty of the volume and nature of these claims, it said.
FSCS chief executive Loretta Minghella said: "In setting our levies, we seek to ensure that we will have enough money to pay claims that we expect to settle in the coming year. We also seek to avoid levying more money than we need."