According to its annual report filed at Companies House, EY increased its provisions pot to £188m, up from £44m the previous year. This figure is almost seven times the average amount EY has set aside annually since it began reporting such figures in 2002. It also surpasses the £179m set aside by rival KPMG in 2022, ahead of that firm’s settlement with the liquidators of collapsed outsourcer Carillion.

The surge in provisions reflects a series of legal claims and regulatory investigations bearing down on EY over the quality of its audits. In February, the firm settled a £2 billion High Court lawsuit brought by administrators of collapsed hospital operator NMC Health for an undisclosed sum and without admission of liability. The claim had alleged that EY missed a series of red flags and was negligent in its audit.

EY had previously described the £2bn figure as “highly speculative” and outside any reasonable range of possible outcomes, and its filing did not confirm whether the £188m provision was linked to that settlement. The Financial Reporting Council’s investigation into EY’s NMC audits is ongoing, and EY continues to deny negligence.

Beyond NMC, EY is currently subject to four other regulatory investigations. In December, the FRC opened a probe into its audit of Shell, one of the most valuable mandates in the FTSE 100; Shell subsequently dismissed EY as its auditor, and four partners left the firm. Further investigations concern EY’s work for the Post Office and collapsed online retailer Made.com. The firm was also fined approximately £5m during the financial year, including for serious breaches in its work on failed travel group Thomas Cook’s accounts.

EY paid out £48m against claims during the year. Its trade and other receivables, which include insurance recoveries, rose by £116m, reflecting the protection offered by the firm’s professional indemnity insurance arrangements, which include an in-house insurer that passes part of the risk to external providers.

Provisions vary considerably across the Big Four. Deloitte reported £57m set aside in May 2025, KPMG £31m in September 2024, and PwC £19m in June 2025, though PwC had previously set aside £181m in its 2024 financial year and paid out £162m.

EY declined to comment.