The Bank of England has announced a significant increase to the maximum amount protected under the UKS deposit insurance scheme, effective December 1, 2025. The move raises the guaranteed sum from £85,000 to £120,000 per depositor, per authorized firm, representing a more than 40% increase and the largest adjustment as 2017. This change,confirmed by the Prudential Regulation Authority,aims to bolster public confidence in the UK financial system amid ongoing assessments of global banking risks and rising inflation.
Wednesday, November 19, 2025, 1:00 AM
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The United Kingdom’s central bank has significantly increased the maximum amount guaranteed by the government for bank deposits, a move that will provide greater protection for customers. Effective December 1, 2025, the Bank of England announced the maximum guaranteed sum will rise to £120,000.
This represents a more than 40% increase from the current level of £85,000, offering expanded coverage in the event of a financial institution failure, according to the BBC. The change reflects a broader effort to bolster confidence in the UK’s financial system.
Currently, UK depositors can claim reimbursement of the first £85,000 held in their accounts under the country’s deposit protection scheme. The upcoming change will extend that protection to £120,000 per depositor, per authorized firm.
The increase, confirmed by the Prudential Regulation Authority (PRA), which oversees banks in the UK, marks the largest adjustment since 2017, when the current limit was established. This adjustment comes as financial institutions and regulators worldwide assess risks in the banking sector.
“This increase ensures that consumers can have confidence that their money is safe, from the first penny up to £120,000,” said Martyn Beauchamp, Chief Executive of the Financial Services Compensation Scheme (FSCS).
The Bank of England stated that the new limit exceeds the PRA’s previous proposal of £110,000 and reflects the latest inflation data, as well as feedback received during consultations.
Large Romanian Community in the UK to Benefit
The FSCS protection applies per person and per authorized firm. Some banking groups operate multiple brands under a single license, meaning the limit covers the total amount held across those brands. Customers do not need to take any action, as the new limit will be applied automatically.
Sam Woods, Deputy Governor for Prudential Regulation at the Bank of England and Chief Executive of the PRA, stated: “This change will help maintain public confidence in the safety of their money.”
“This means depositors will be protected up to £120,000 if their bank, building society, or credit union fails.” He added, “Public confidence underpins the strength of our financial system.”
Eric Leenders, Managing Director of Personal Finance at UK Finance, which represents the banking industry, said it was “right” to update the limit to account for inflation and that the changes would help with implementation.
In addition to the increased deposit limit, the ceiling for large temporary balances – covering life events such as funds from the sale of a home or an insurance payout – will also increase from £1 million to £1.4 million for a period of six months.
Over 1 million Romanians have settled in the United Kingdom, with approximately 500,000 residing in the Greater London area. The Romanian community is the second largest in the UK, after the Polish community, according to Euronews. This change will provide added financial security for a significant portion of the UK’s population.
