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Written question asked by Mark Garnier (Conservative) on Tuesday, 6 May 2025, in the House of Commons. It was due for an answer on Tuesday, 13 May 2025 (named day). It was answered by Emma Reynolds (Labour) on Tuesday, 13 May 2025 on behalf of the Treasury.


Financial Services Compensation Scheme

Question

To ask the Chancellor of the Exchequer, what recent discussions she has had with the Prudential Regulation Authority on the potential merits of changes to the Financial Services Compensation Scheme deposit protection limit.

Answer

Eligible deposits held by UK banks, building societies and credit unions that are authorised by the Prudential Regulation Authority (PRA) are protected by the Financial Services Compensation Scheme up to £85,000. The PRA sets this limit and is required to independently review the limit every five years.

On 31 March, the PRA launched a consultation on the outcome of its most recent review and proposed an inflation-based increase in this limit to £110,000. Any changes to the limit must be approved by the Treasury and the Government would carefully consider any changes proposed by the PRA following the conclusion of this consultation.


Secondary information

Type
Written question
Reference
50098
Session
2024-26
Subjects
Financial Services Compensation Scheme Prudential Regulation Authority
Link
View this Written question on www.parliament.uk