The contactless card payment limit will more than double to £100 in today's budget set to be announced by Chancellor Rishi Sunak.

The changes will see the legal single contactless payment limit raised from £45 to £100.

The Government said the change has been made possible by the UK's exit from the European Union, which means we are no longer bound by EU rules on the maximum limit for contactless payment, which is currently set at £45.

Mr Sunak said: "As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth."

In January the Financial Conduct Authority said they intended to consult on the proposal to increase the limit to £100.

The FCA said that since the limit was increased from £30 to £45 last April many more people have started paying via contactless payments.

It's never been more important to stay in touch with the news, so subscribe now to the Liverpool Echo newsletter. Twice a day, seven days a week, we'll deliver the biggest stories straight to your inbox.

We'll also send special breaking news emails too for the latest stories that matter. You won't miss a thing.

How do I sign up?

It's free, easy and takes no time at all.

  1. First just click on this link to our newsletter sign-up centre.
  2. Once you're there, put your email address where it says at the top, then click on the Echo Daily News button. There are other newsletters available too if you want them as well.
  3. When you've made your choice, press the Save Changes button.

The FCA said: "It's important that payments regulation keeps pace with consumer and merchant expectations.

"Recognising changing behaviour in how people pay, as part of a wider consultation, we will shortly be seeking views on amending our rules to allow for a possible increase in the contactless limit to £100."

Increasing the contactless payment limit may hasten the demise of cash use, although the Government intends to legislate to protect access to cash.

Keep up to date with local news in your area by adding your postcode below

Some retailers have encouraged shoppers to pay by card rather than cash during the pandemic, although a recent Bank of England study found the risk of catching coronavirus from banknotes was low.

The current £45 limit is three times the amount it was a decade ago.

"Tap and go" contactless cards initially had a limit of £10 in 2007, and this was increased to £15 in 2010, £20 in 2012 and £30 in 2015.