Short answers, pulled from the story.
The Financial Services Compensation Scheme emerged in 2001 under the Financial Services and Markets Act 2000. This legislation created an operationally independent body to step in when authorized financial services firms fail.
These payouts helped more than 4.5 million people since the scheme began operations. The period from 2006 to 2011 saw over £26 billion distributed during the height of the 2008 financial crisis.
Authorized firms pay levies to fund the entire operation of the scheme. These payments cover both management expenses and direct compensation payments to claimants while ensuring that the burden falls on the industry rather than taxpayers or consumers.
From the 1st of December 2025, the deposit protection limit rose from £85,000 to £120,000 per person per authorized firm. Joint accounts now receive £120,000 of protection for each eligible person involved.
On the 31st of August 2012, UK banks were required to display FSCS protection information in branches and online. Posters and window stickers became mandatory displays under new Financial Services Authority rules.