In July 2015, the level of Financial Services Compensation Scheme (FSCS) protection for depositors was cut by £10,000 to £75,000. The reduction was the result of the review requirements under the European Deposit Guarantee Schemes Directive (EDGSD). The Directive specified a minimum level of €100,000 or the local currency equivalent.
Following the Brexit Vote, the Pound has fallen significantly against the Euro and as a result, the Prudential Regulatory Authority looks set to restore the level of deposit protection to £85,000 next year.
A consultation on restoring the limit to £85,000 will run until 16 December, with the new limit to take effect from 30 January 2017. However, firms will have until 30 June next year to implement the necessary changes to systems and materials.