News that millions of bank customers will get £10,000 less compensation in future if their bank goes bust has been criticised as "absurd" by a senior MP.

Under the Financial Services Compensation Scheme (FSCS), consumers can receive up to £85,000 per account. But from 1 January 2016, the amount will be reduced to £75,000, as a result of the strength of the pound. Furious bankers said they had been given no notice of the changes, which were announced by the Bank of England. "The level of anger is extraordinary," said one source in the industry. Andrew Tyrie MP, the Tory chairman of the Treasury Select Committee, said the whole scheme was "defective". "It is absurd that the 16% depreciation of the euro largely brought about by the crisis in the eurozone in general, and the Greek crisis in particular, should be forcing a reduction in the level of protection available to UK depositors," said Mr Tyrie.

'No sense'

The compensation scheme is run under a European directive, which sets the limit at €100,000 across the whole of the European Union.
But the precise sum in pounds for the next five years is based on exchange rates on 3 July....Read more here