Politics

Copy article

IFA Calls for Government to Get a Move On: Why Is It Taking Nearly a Year to Raise FSCS Protection Limits?

ended 30. October 2025

IFA Scott Gallacher of Rowley Turton has joined calls for the Government and regulators to speed up the long-awaited update to the Financial Services Compensation Scheme (FSCS) protection limits, saying it’s “taking far too long for such a simple and sensible change.”

The Prudential Regulation Authority (PRA) — part of the Bank of England — proposed back in March 2025 to increase the FSCS’s standard deposit protection limit from £85,000 to £110,000, and the Temporary High Balance (THB) protection from £1 million to £1.4 million.

These changes are designed to reflect inflation and the rising cost of living, but despite widespread support, no action has yet been taken. The consultation closed in June 2025, and implementation was initially expected later this year — yet the industry is still waiting for confirmation from both the PRA and HM Treasury.

We’d welcome comments from other financial experts

With inflation having eroded the real value of protection since the limits were last reviewed in 2017, do advisers and financial professionals believe the current levels are no longer fit for purpose?

Is the Government dragging its feet?

And should they get these long-overdue FSCS updates implemented without further delay?

2 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Scott Gallacher
Director at Rowley Turton
It’s daft that apparently simple and common-sense changes like this — with little or no cost to the Exchequer — can drag on for months for no obvious reason.

The Chancellor wants to deliver growth and get the country moving, but with unnecessary bureaucracy like this, it doesn’t bode well for other areas.

The FSCS limits are clearly out of date — surely this is something that could be sorted out over a cup of tea in Downing Street.

I can only hope that Rachel Reeves is holding this back as a much-needed good news announcement in her next Budget.
Copy

Editor
Eamonn Prendergast
Chartered Financial Adviser at Palantir Financial Planning Ltd
The Government is dragging its feet again, and savers are the ones paying the price. It’s taken almost a year to act on a change that should have been made years ago. The FSCS limit has been frozen at £85,000 since 2017 and in that time inflation has soared more than 35%. If the protection had simply kept pace with prices, it would now stand at around £115,000, so the proposed £110,000 isn’t generous, it’s merely catching up with reality. For eight long years, the real value of protection has been quietly eroded while the cost of living climbed. Consumers were left exposed through no fault of their own, trusting a safety net that has been shrinking in real terms. The Government and regulators need to stop dragging their heels because every lost year has chipped away at public confidence in the very system designed to protect them.