Financial Services Compensation Scheme to cover deposits of small local authorities

Financial Services Compensation Scheme (FSCS) to cover deposits of small local authorities

From 3rd July 2015 the UK Financial Services Compensation Scheme (FSCS) will cover the deposits of small local authorities. The definition of small local authority being one that has an annual budget of less than €500,000 (currently £355,700 as it is based on the exchange rate on 3rd July each year). This will extend cover to over 8,000 parish and community councils.

The UK FSCS will cover the first £75,000 of eligible deposits, a reduction from the previous figure of £85,000. The previous limit will remain in force for individuals and small companies until 31st December 2015, but the new rate will apply immediately for councils

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The FSCS ensure that eligible bank depositors have access to their eligible deposits within fifteen business days of receipt of a request from the depositor which contains sufficient information to enable the FSCS to make a payment. The formal announcement of the change can be found on the Bank of England’s website.

NALC Financial briefing note F05-15 is in the Members Area of the NALC website, your clerk has the username and password to access that area.