Shoppers across the UK will now be able to pay up to £100 using contactless card payment services from today.
At the start of the COVID-19 pandemic, the payment cap was increased to £45 to help reduce the need for customers to handle cards and cash due to concerns about the virus being transmitted via surfaces.
But today’s payment limit increase to £100, announced last week, is the most significant yet.
The latest increase, which was initially announced in March’s budget, will not be available everywhere straight away however, as some businesses and retailers still need to roll out changes to their technology, while others may choose not to adopt the new limit at all.
The British Retail Consortium said consumers should check with individual stores, as it could take “days, weeks or even months” for the change to be put in place.
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Here’s everything we know so far.
Why is the limit increasing?
As mentioned, the decision to increase the limit was taken by the Treasury and the City regulator, the Financial Conduct Authority (FCA), and was announced last week, but Chancellor Rishi Sunak first teased it during his 2021 Budget back in March.
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Mr Sunak said the decision to increase the limit to £100 would not only be more convenient for shoppers, but it would also be a boost to the High Street following several lockdowns.
When contactless card payments were introduced in 2007, the transaction limit was set at £10 and designed as an alternative to small change – but the limit has been gradually raised five times over a number of years since then.
It increased to £45 last year, as the pandemic accelerated a move away from cash.
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The increase also comes after it was found that more than a quarter of all payments in the UK were contactless in 2020, according to figures from the banking trade body UK Finance, with 83% of people using the technology.
A Financial Conduct Authority spokesperson said the rules have been changed to help the industry continue “to respond to the changing ways in which people prefer to pay”.
Shoppers across the UK will now be able to pay up to £100 using contactless card payment services from today / Credit: Flickr
Why can’t it be used in all retailers just yet?
The short answer is that not every shop is ready to facilitate the new limit from today,
Due to the huge number of terminals which need to be updated, this means that Friday marks the first day of a gradual introduction of the new limit, with the Andrew Cregan – Payments Policy Adviser at the British Retail Consortium – admitting: “It may take days, weeks, or even months for some retailers to make the necessary changes in their systems so that the new limit can take effect.”
“Some retailers may [also] choose not to adopt the new contactless limit,” he added.
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“As a result, customers will need to take care when making payments to check what the maximum contactless limit is for individual stores.”
The increase also comes after it was found that more than a quarter of all payments in the UK were contactless in 2020 / Credit: Wikimedia Commons
What are the risks?
A number of experts and organisations have spoken out to make shoppers aware of the risks as the limit increases to £100, warning that the change will make contactless cards more of a target for fraudsters, or cause problems for people who are struggling to stay in control of their spending.
Age UK has also warned that because the raising of the limit could increase the potential for fraud, it may therefore put some older people off using bank cards to pay for goods and services when they’re out and about.
Because of this, several banks across the UK have said they will also allow account holders to set a contactless limit of less than £100, or even turn it off altogether.
Gareth Shaw – Head of Which? Money – added: “While paying with contactless offers great flexibility and convenience for many people, some may be wary about the significant increase – so it is encouraging to see some banks allowing customers to set their own contactless limits from as low as £30.
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“These changes may make contactless cards slightly more attractive for fraudsters, but encouragingly the risk of being defrauded via a contactless card remains low and if a fraudster does use your card details then your card provider should reimburse you.
“Consumers should be able to feel confident using them.”
Featured Image – Flickr
News
Greater Manchester officially launches five-year climate change action plan
Danny Jones
Greater Manchester has officially begun its five-year climate change action plan, with the overarching goal of becoming a net-zero city region by 2038.
The comprehensive pledge put together over a number of years itself will see Manchester City Council and the nearby local authorities put into action a number of key measures that will help to reduce not only central carbon figures but, eventually, across the 10 boroughs in turn.
Over the last 15 years, emissions have been reduced by approximately 64%, saving an estimated 44,344 tonnes of carbon through cleaner building energy, street lighting and other electronics, as well as the increasingly green and over-growing Bee Network.
They have also insisted that it isn’t just about cutting down on greenhouse gases; the aim is to make the city region and the surrounding areas more sustainable, affordable and create a better standard of life.
Our five-year plan to tackle climate change launches today. 🌏
It details how we’ll continue to deliver dramatic reductions in the amount of carbon we emit (the biggest contributor to climate change). 🏙️
As per the summary on the Council website, in addition to creating more efficient homes, they’re hoping to provide more access to nature and good-quality green space, “public transport you can rely on”, and “better health and wellbeing for those who live, work, study and visit here.”
With a steadily recovering local and national economy (touch wood), they’re also hoping for an influx of new jobs, too.
Summarising the key bullet points leading up to the end of the decade, these are the next steps currently outlined by the Council:
Lower carbon emissions
Grow the use of renewable energy
Improve low-carbon travel in the city
Improve air quality
Grow the city’s natural environment and boost biodiversity
Improve resilience to flooding and extreme heat
Engage and involve our workforce and our city’s communities
Reduce waste and grow reuse, repair, sharing and recycling
Support a move to a more circular economy
Minimise the negative impact of events held in the city
Develop our knowledge of our indirect emissions and lower them
Create a green financing strategy and explore new funding models for the city
Influence the environmental practices of other organisations
As for emissions, the target is now to drop the present output by another 34%, which will prevent almost 43,000 tonnes of carbon dioxide (CO₂) from being pumped into the atmosphere.
Having touched upon the continued expansion of the Bee Network infrastructure, Transport for Greater Manchester (TfGM) is also set to install multiple new travel links over the coming years, including both new tram stops and train stations – further
You can read the climate action plan in full HERE.
Manchester’s firework displays are ‘back with a bang’ as they return from 2026
Emily Sergeant
Council-organised firework displays in Manchester’s parks are set to return from next year, it has been confirmed.
You may remember that these once-popular events have not been held since 2019, as the COVID-19 pandemic initially prevented them from taking place from 2020 onwards, and then following that, they remained paused on a trial basis while the Manchester City Council sought to ‘reprioritise funding’ to support a wider range of free community events across the city.
But now, as it seems, the door was never shut on their potential return.
An ‘improved financial position’ now means that the Council is in a position to bring firework events back, while also still continuing to support other community events.
Papers setting out the Council’s financial position show that fairer funding being introduced by the Government next year will leave the Council better off than previously anticipated, he the reason firework displays have been brought back into the mix.
The Council has admitted that ‘pressures remain’ after so many years of financial cuts, but this new funding creates the opportunity to invest in the things residents have said matter the most to them.
“Manchester prides itself on free community events and we know many people have missed Bonfire night firework spectaculars,” commented Cllr Bev Craig, who is the Leader of Manchester City Council.
“That’s why we are pleased to confirm they’ll be back by popular demand in 2026.
“We know that generations of Mancunians have enjoyed Council-organised displays and that free family events are a great way to bring people together… [and] now that this Government is actually investing in Councils like ours rather than the cuts we had since 2010, we can bring back Bonfire events.”
The Manc -
15th October 2021 
