The Prudential Regulation Authority (PRA) has confirmed that the Financial Services Compensation Scheme (FSCS) deposit protection limit will increase to £120,000 per person, per authorised firm, effective from 1 December 2025. This measure replaces the previous £85,000 limit, which was last updated in 2017, and is intended to reflect recent inflation data and strengthen public confidence in the UK banking system. The new coverage also applies to eligible customers of banks, building societies, and credit unions that are authorised by UK regulators. According to the FSCS, compensation for covered deposits will typically be paid within seven days if a financial institution fails.
Key Changes at a Glance
| Protection Type | Previous Limit | New Limit (Dec 2025) |
|---|---|---|
| Standard deposit protection | £85,000 | £120,000 |
| Temporary high balances* | £1 million | £1.4 million |
*Temporary high balances are protected for up to six months after qualifying life events such as a house sale or inheritance.
Martyn Beauchamp, Chief Executive of FSCS, emphasised the significance of this decision for UK consumers: “Whether it’s everyday cash, rainy-day savings or temporary high balances after a big life event like selling a home, everyone wants to know their money is safe. That’s why this increase in deposit protection matters. From December, even more of consumers’ money will be covered, from the first penny up to £120,000.” He also noted the launch of the refreshed ‘FSCS Protected’ badge, which will help customers easily identify protected accounts: “That reassurance builds trust in the financial services industry and supports financial stability and growth…”
Sam Woods, PRA Chief Executive, stated: “This change will help maintain the public’s confidence in the safety of their money. It means that depositors will be protected up to £120,000 should their bank, building society or credit union fail. Public confidence supports the strength of our financial system.”
What This Means for Casino Players and Savers
- Greater protection: More funds are now covered if your payment provider or bank fails, which is especially relevant when managing large balances or making fast withdrawals from online casinos.
- Quicker payouts: FSCS aims to reimburse eligible deposits within seven days in most cases.
- Temporary high balances: Life events triggering large temporary account balances (e.g., property sales) now receive increased cover for a six-month period.
This update forms part of the PRA’s wider agenda to promote financial security and resilience among UK consumers. For further details, you may visit the FSCS official announcement.
