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ARTICLE · 04 DECEMBER 2025

PRA Issues Policy Statement On Raising FSCS Deposit Protection Limit

Lewis Silkin
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The Financial Services Compensation Scheme is the UK's deposit guarantee scheme. It protects eligible deposits by providing compensation to depositors if a firm fails, up to limits set by...

United KingdomFinance and Banking
Wendy Saunders
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The Financial Services Compensation Scheme is the UK's deposit guarantee scheme. It protects eligible deposits by providing compensation to depositors if a firm fails, up to limits set by the Prudential Regulation Authority.

The PRA recently consulted on amendments to the depositor protection framework about the level of protection that the FSCS provides. In particular, the PRA proposed to:

  • increase the deposit protection limit from £85,000 to £110,000 from 1 December 2025;
  • increase the limit applicable to certain temporary high balance (THB) claims from £1 million to £1.4 million from 1 December 2025;
  • require firms to update disclosure materials and deposit compensation information by 31 May 2026;

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