Depositor protection: UK PRA increases FSCS protection limits with effect from 1 December 2025

Depositor protection changes being introduced largely in line with March 2025 consultation

The PRA’s November 2025 policy statement (PS24/25) confirms that it is introducing the depositor protection changes as consulted on in March this year pretty much “as is”, the main exception being the slight increase to the new deposit protection limit from £110,000 to £120,000.

For a more detailed reminder of those changes, take a look at this previous Our Thinking article.

Alternatively, here’s a brief overview of what’s changing and any additional amendments that the PRA has made in light of consultation feedback:

• The deposit protection limit is being increased from £85,000 to £120,000 and the temporary high balance limit from £1 million to £1.4 million, both taking effect from 1 December 2025 (for firm failures on or after that date). The updated versions of SS18/15 and Statement of Policy SoP1/15 will also apply from that date. The PRA proposed increasing the deposit protection limit to £110,000, but has settled on a new total of £120,000 due to respondents’ feedback and the latest inflation data.
• Firms are also required to update their single customer view (SCV) systems to reflect the new limits from 1 December 2025. With less than two weeks to go until this deadline, hopefully firms took heed of the emphasis that the PRA placed on the importance of forward planning in its March 2025 consultation and are now in a position to quickly adjust their SCV systems having checked that depositors’ contact details held within the SCV are up-to-date.
• There is a transitional period to 31 May 2026 for consequent changes to the information firms are required to disclose to depositors and other consumers to reflect the updated protection limits as well as ensuring information on the FSCS more generally remains clear and easy to understand.
• Further amendments to the DPP rules in light of stakeholder feedback include:
  • amending the requirement for firms to display the FSCS compensation sticker and poster to exclude branches where a firm does not deal with depositors in person;
  • clarifying the scope of ‘third-party premises’ (to tighten the requirement and more closely reflect models such as banking hubs); and
  • updates to the information sheet to address points relating to accessibility.
• Further amendments to SS18/15 to clarify existing requirements have also been made, and new guidance on ‘third-party premises’ is being introduced to support the new requirements for models such as banking hubs as mentioned above.
• The FSCS will make information available on its website to assist firms in relation to the new limits and information requirements.

What about the consultation proposals relating to implementation of the Bank Resolution (Recapitalisation) Act 2025?

The PRA's March 2025 consultation also included proposed new and amended DPP rules to enable the FSCS to fulfil its new functions under the Bank Resolution (Recapitalisation) Bill, now Act. This legislation was introduced in recognition of the lessons learnt from the resolution of Silicon Valley Bank UK Limited and is aimed at enhancing the existing resolution regime to provide increased flexibility for the effective management of the failure of smaller banks. Take a look at this Our Thinking article for more on the Act.

The rule changes were confirmed – without significant amendment – in the PRA's July 2025 policy statement (PS13/25). They came into force on 16 July 2025, the same date as the Act.

Amendments to SS18/15 and to SoP1/15 relating to the PRA's implementation of the Act were introduced on publication of the PRA's November 2025 policy statement.

Next steps

The countdown towards the 31 May 2026 deadline for deposit taking firms to make the required changes to disclosure materials is about to begin. If you would like to talk about this or any other aspect of the recent PRA rule changes, please reach out to one of the people listed above or your usual Hogan Lovells contact.

Authored by Virginia Montgomery.