That road has now taken a clearer shape with the Bank’s policy decision to make a significant change to how and when high-value payments settle in the UK.

What’s changing?

From September 2027, the UK’s high-value payment system, CHAPS, will begin settling payments much earlier in the day. Instead of opening at 06:00, CHAPS will open for settlement at 01:30am UK time.

Importantly, this earlier window is optional: direct participants in CHAPS can choose whether to send payments during these early hours, but all participants will be able to receive payments from 01:30 onwards if they wish. 

Why this matters

This change might seem technical at first glance, but it has real implications for how money moves in the UK and beyond. Here’s why it’s significant:

1. Better liquidity and resilience

Opening settlement earlier gives firms more flexibility in managing liquidity – the cash and balances they need to make payments – and helps reduce bottlenecks in the morning rush. 

2. Stronger global connectivity

An earlier start aligns UK settlement hours more closely with markets in Asia, the Middle East and Europe. This overlap supports smoother cross-border flows and helps the UK maintain its role as a global financial hub.

3. Progress towards near-24/7 settlement

The early morning extension (EME) is the first concrete step in a phased journey towards near-around-the-clock settlement. The Bank will continue work on later evening settlement, bank holiday windows, and broader operating models – with further consultation and engagement planned. 

Practical impact for firms

Under the new design:

• Sending payments early will be voluntary, so firms can adopt the change at a pace that suits their operations.
• Receiving payments from 01:30 will be automatic. This means banks and payments firms must plan how their own systems manage crediting funds, even if they don’t send payments at that time.
• The existing throughput rules – which set expectations for how much value CHAPS participants settle at different times of day – will stay the same, even though the system opens earlier.

Where this fits in the bigger picture

This change builds directly on the themes we explored in our earlier blog on extending settlement hours as part of modernising UK payments infrastructure:

Extending settlement hours is an important foundation for 24/7 payments – creating more efficient liquidity management, stronger international connections and a more resilient payments ecosystem.

The Bank’s latest policy statement shows that this isn’t just theoretical – it’s turning into a tangible shift that firms will plan for and operationalise in the years ahead.

What’s next?

Looking forward:

• The Bank has said it will not proceed with extending CHAPS settlement every evening right now, because demand for that was limited in the consultation. 
• Work will continue on assessing demand for bank holiday settlement windows and the best way to bring settlement towards near-24/7 hours. 
• In Spring 2026, the Bank plans a new consultation focused on the opportunities and challenges of near-24/7 settlement across RTGS and CHAPS. 

What this means for UK Finance members

For firms across the UK’s payment ecosystem, the early morning extension represents:

• A chance to rethink liquidity and operational processes.
• A more flexible settlement environment that supports international business models.
• A stepping stone towards the future of payments infrastructure that’s more resilient, more competitive and better aligned with global markets.

We’ll continue to engage with our members and the Bank of England as the implementation plans take shape, ensuring that industry voices help guide every stage of this transition.