In a report on the FCA website, officials said the number of claims in relation to advice about transferring from occupational pension schemes into Sipps is expected to increase by 67%.

The number of investment-based claims is forecast to increase by 108%.

The figure was revealed after advisers were told yesterday they faced forking out an extra £36m for a supplementary levy linked to Sipps.

The FSCS budget showed those in the life and pension intermediaries category would pay a levy of £171 million.

The report stated: “Notably, the FSCS is anticipating claims in respect of an increasing number of failed firms, although the majority of recent claims have been attributed to a small number of firms. More straightforward claims, principally in provider classes, are expected to reduce by 40%.”

The papers showed that the FSCS budget includes £16.113 million for outsourced claims handling costs, an increase of £4.553 million (39.4%).

The increase in costs is caused by a forecast 60% increase in the volume of complex outsourced claims compared to the 2016/17 budget.

Overall, the FSCS expects to levy the industry £378m, down from £401m in 2016/17.