The Bank of England’s Prudential Regulation Authority (PRA) has confirmed a significant increase to the deposit protection limit under the Financial Services Compensation Scheme (FSCS), raising it from £85,000 to £120,000 per eligible depositor, effective from 1 December 2025. The limit for temporary high balance claims will rise from £1 million to £1.4 million. These measures aim to enhance consumer protection and confidence in the UK financial system, especially in light of inflation since 2017 and feedback from recent consultations.
According to the PRA, “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.” This updated limit governs the maximum compensation offered by the FSCS if a UK-authorised bank, building society, or credit union collapses.
- New deposit limit: £120,000 per person, per institution
- Temporary high balance cap: Increased from £1 million to £1.4 million
- Implementation for banks: Six months to update customer information and single customer view (SCV) systems; all new limits apply in the event of institution failures after 1 December 2025
- Disclosure updates: All FSCS disclosure materials must be revised by end of May 2026
The FSCS states, “This rise ensures that consumers can feel confident their money is safe, from the very first penny up to £120,000. At FSCS, we know that trust in financial services is vital for stability and growth. This enhanced protection will reassure consumers and support confidence in the UK’s financial system.”
For online casino players and payment service providers, these changes mean improved protection for funds held in UK banks. The increased guarantee may also make rapid casino withdrawals more secure by reducing the risk premium associated with larger transfers.
| Change | Previous Limit | New Limit |
|---|---|---|
| Standard FSCS deposit protection | £85,000 | £120,000 |
| Temporary high balance protection | £1 million | £1.4 million |
For further information, see the official Bank of England announcement.
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