Short answers, pulled from the story.
The Financial Services Compensation Scheme (FSCS) is the UK's statutory compensation scheme for customers of UK-authorised financial services firms. It pays compensation when a firm is unable or likely to be unable to pay claims against it. It is free for consumers to use and is funded by levies on authorised financial services firms.
From the 1st of December 2025, the FSCS deposit protection limit is £120,000 per person per authorised firm. For joint accounts, each eligible person is covered up to £120,000. This was the first increase in eight years, made possible by the UK's departure from the EU.
Since its launch in 2001, the FSCS has paid out more than £26 billion and helped more than 4.5 million people. Over £26 billion of that total was paid out in the period from 2006 to 2011, which included the 2008 financial crisis.
In the vast majority of cases, savings are refunded in fewer than seven days. The protection is automatic; customers of a bank, building society, or credit union deemed insolvent do not need to file a claim.
Yes. The FSCS covers deposits, investments, mortgages, pensions, insurance, debt management, funeral plans, and payment protection insurance, though to varying limits. Investments are covered at 100% up to £85,000 per firm, while insurance products such as pensions and life assurance are covered at 90% of the claim with no upper limit.
The increase from £85,000 to £120,000 on the 1st of December 2025 was the first inflationary uplift in eight years. It was made possible by Brexit; when the UK was an EU member, the guarantee limit had to be set at a sterling equivalent of EUR 100,000, which constrained any independent adjustment.