The Union is very concerned by the disproportionate impact on building societies (including Nationwide) of the Financial Services Compensation Scheme (FSCS) levy. The FSCS is the UK's statutory fund of last resort for customers of authorised financial services firms.

It would seem that the building societies' share of the levy is approximately £200 million per annum in each of the next three years and this is equivalent to about 15 per cent of the sector's pre-tax profit for 2007-08 financial year ends. This contrasts sharply with the banking sector, where the FSCS levy is typically well below five per cent of pre-tax profits over a similar period.

We are in talks with the TUC about the influence it can exert on the Government to support the building society sector through the recession, and we are looking for support in relation to reforming the FSCS.

NGSU members and employees can get involved in two ways: by signing an e-petition of the 10 Downing Street website and writing to their MP urging them to support an Early Day Motion. Further details about these initiatives are given below and on our website.

We understand that Nationwide's contribution to the FSCS over the next three years will be significant with an adverse impact on profitability. We are worried that this will translate into a further reduction in the investment in employees. It is therefore important that everyone actively supports this campaign.

Tim Poil
General Secretary