Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the press release entitled Regulator axed as red tape is slashed to boost growth, published on 11 March 2025, what the estimated reduction in staff numbers is from the merger of the Payment Services Regulator into the Financial Conduct Authority; what functions will cease; and whether staff will be required to move desks.

The Payment Systems Regulator (PSR) has carried out important work to support the UK’s world leading payments sector. However, moving forward, the Government wishes to see a more streamlined regulatory environment with minimal overlap between regulators’ responsibilities. That is why the Government has announced its intentions to consolidate the PSR and its functions primarily within the Financial Conduct Authority (FCA).

The Government will consult on the detail of this proposal in the summer. However, the expectation is that most functions will move to the FCA, reflecting the close synergies between those organisations.

Questions regarding the staffing of the FCA are matters for the regulator, which is independent from Government.