The Prudential Regulation Authority (PRA) has announced that the UK’s deposit protection limit under the Financial Services Compensation Scheme (FSCS) will increase from £85,000 to £120,000, effective 1 December 2025. This move is designed to strengthen public confidence in the financial system and to provide additional security for depositors in the event of a bank, building society, or credit union failure. The previous PRA proposal set the limit at £110,000, but feedback from consultations and updated inflation data resulted in the higher figure. [Source]
The new limit marks the first increase since 2017, reflecting changes in economic conditions and inflation. In addition, the maximum cap for temporary high balances—such as funds received from property sales or insurance payouts—will rise to £1.4 million from 1 December, up from the current £1 million. Financial institutions must update their FSCS disclosure materials by the end of May 2026 to ensure customers are correctly informed of the changes.
| Previous Limit | New Limit (from Dec 2025) | Temporary High Balance Cap |
|---|---|---|
| £85,000 | £120,000 | £1.4 million (£1 million previously) |
This change is particularly relevant for online casino players and others who keep substantial balances in UK accounts, offering greater peace of mind over the safety of deposited funds. Sam Woods, Deputy Governor for Prudential Regulation at the Bank of England and CEO of the PRA, commented: “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.”
- Increase reflects inflation since 2017; addresses current cost of living concerns.
- Applies to eligible balances held with PRA-authorised UK banks, building societies, and credit unions.
- Temporary high balance protection applies for up to six months following events such as house sales or compensation payouts.
For more information on secure withdrawals and financial protection in online gambling, see our guides on UK casino withdrawal speeds, safe online casinos, common issues with withdrawals, verifying your casino account, and withdrawal methods.
