The Payments Vision Delivery Committee, comprising representatives from HM Treasury, the Bank of England, the Financial Conduct Authority, and the Payment Systems Regulator, published the Payments Forward Plan on 26 February 2026. The document provides the most detailed regulatory roadmap the UK payments sector has received since the 2023 Future of Payments Review, spanning initiatives across retail payments, wholesale payments, and digital assets over a three-year horizon.
The most consequential structural change confirmed in the Plan is the merger of the PSR into the FCA, with target legislation to dissolve the PSR board by end 2026. This consolidation, first announced in March 2025 as part of the government's Regulatory Action Plan, aims to eliminate overlaps between the two regulators and simplify the supervisory framework. Banks, payment institutions, and e-money institutions already supervised by the FCA under payment services and e-money legislation will see no immediate changes to their regulatory relationships. HM Treasury consulted on the merger details from September to October 2025, with the FCA and PSR submitting a joint response supporting the consolidation.
For retail payment infrastructure, the Plan identifies two parallel tracks. Short-term enhancements to the existing Faster Payment System and BACS payment system are scheduled for delivery by end 2026, addressing immediate operational improvements. A longer-term retail payments infrastructure design and delivery programme will launch in Spring 2026, setting the direction for next-generation payment rails.
On legislation, HM Treasury will publish a consultation paper in Q2 2026 covering modernized payment services law. This consultation will address approaches to open banking regulation and stablecoin payments, shaping the framework that will eventually replace the current Payment Services Regulations 2017 and Electronic Money Regulations 2011. The FCA will issue a parallel engagement paper between Q2 and Q4 2026 on its review of assimilated payment services law.
The Plan also addresses the Digital Pound, with HM Treasury and the Bank of England committing to continued development work through 2026. A blueprint and formal policy decision on whether to proceed with a retail central bank digital currency are expected during the year, though no launch commitment has been made.
The Payments Forward Plan represents a notable consolidation of the UK's post-Brexit payments reform agenda. Rather than individual agencies pursuing separate workstreams, it brings the full regulatory landscape under a single coordinated timeline. For the industry, it provides a clear sequence of consultation windows and implementation deadlines against which to plan compliance programmes and strategic investment.