FCA eyes contactless limit hike after PM’s edict to watchdogs
Share:
The City watchdog is considering a formal proposal to increase Britain’s £100 contactless spending limit as part of a response to the prime minister’s order for regulators to tear down barriers to economic growth. Sky News has learnt that the Financial Conduct Authority's response to a Christmas Eve letter from Sir Keir Starmer, chancellor Rachel Reeves and business secretary Jonathan Reynolds includes potential reforms to contactless payments among its ideas.
The £100 limit has been in place since the autumn of 2021, and any move to increase it could be controversial among retailers and consumer debt groups. Money latest: Millionaire urges end to 'obsession with work-life balance'. City sources said the FCA's thinking was at an early stage and may not lead to a formal proposal, while it was unclear whether the watchdog would consider removing the contactless payments ceiling altogether.
The FCA is understood to be considering whether to publish its response to Sir Keir's letter. Sky News revealed a few days after Christmas that the PM, chancellor and business secretary had written to more than a dozen economic regulators, including the Competition and Markets Authority, Ofgem and Ofwat, in a bid to remove unnecessary barriers to growth.
Pizza Hut salvages restaurants' future with pre-pack sale. UK economy just about returns to growth after two months of contraction. Money blog: Britons need to end 'obsession with work-life balance', says BrewDog millionaire. The letter's recipients were given a January 16 deadline to respond with five proposals to achieve the government's objective.
