Financial Services Compensation Scheme

One year on from the ‘failure’ of Northern Rock, greater understanding was needed of people’s knowledge and perceptions of their potential exposure to bank failure, and of the extent and limits of the FSCS, as well as to planned changes in the scheme (since enacted).

Group discussions were hold with savers and borrowers. During the fieldwork period the subject matter moved from the hypothetical to a ‘clear and present danger’ status, as Lehman’s failed and in the UK HBOS, A&L and B&B all had to be ‘rescued’.

The work was used to inform the approach adopted by the FSCS in communicating the changes to the scheme.