In its response to the Bank’s consultation, UK Finance and its members have welcomed this move as an important milestone in modernising the UK’s payments infrastructure and strengthening the country’s global competitiveness.

Supporting the UK’s growth and global connectivity

Every day, around £400 billion flows through CHAPS, the UK’s high-value payment system that supports everything from property completions to large corporate and financial market transactions.

By opening settlement from 1:30am, the proposed changes would create greater overlap with markets in Asia, the Middle East, and the EU. This would help improve liquidity, reduce settlement risk, and enhance the speed and efficiency of cross-border payments — directly supporting the G20’s Roadmap for cross-border payments and the UK’s wider growth agenda.

Nuala Jackson, Payments Director at UK Finance said: 

Our members strongly support the direction of travel. Extending settlement hours is one step closer to more resilient, globally connected payment system. It will help ensure that the UK continues to lead in global Payments innovation while giving firms of flexibility to adapt at their own pace.

Flexibility through optional participation

Members have particularly welcomed the Bank’s proposal to make participation in the early morning window optional.

This flexibility allows participants with international business models to benefit immediately from the extended hours, while giving domestically focused firms time to plan and adjust their operations. Optionality, members say, should remain a defining feature as the UK moves gradually towards 24/7 operation.

The extended operating hours are also expected to smooth liquidity flows and reduce the morning bottleneck of queued payments, improving efficiency for participants and end users alike.

Getting the details right

While broadly supportive, members have highlighted several important areas where clarity and coordination will be essential:

• Liquidity and participation: The success of the early window depends on sufficient take-up by direct participants. Sharing the Bank’s modelling assumptions on expected liquidity levels would help firms plan with confidence.
• Operational support: The Bank has proposed limited support between 1:30am and 5:45am. Members have asked for clearer definitions of what constitutes a “critical incident” and for automated tools — such as a shared dashboard — to alert participants to any issues in real time.
• Timelines and coordination: The proposed implementation date in the second half of 2027 is broadly achievable, but firms stress the need for careful alignment with other major industry changes, such as ISO 20022 and the broader Payments Forward Plan.
• Cost and proportionality: Following significant investment in the RTGS Renewal Programme, members believe the incremental costs of extending operating hours should remain limited, with minimal cost pass-through to participants.

Looking beyond Phase 1

The Bank also sought views on introducing a later contingency window (up to 10pm) and the potential for bank holiday settlement.

Members recognise the value these options could bring for resilience and cross-border alignment but note that ad-hoc or occasional extensions would add complexity without clear customer benefit. A predictable, consistent approach — as part of a broader roadmap to 24/7 settlement — would provide greater value and allow firms to plan effectively.

Detailed consideration will also be needed on areas such as liquidity management, regulatory reporting, and FX implications before any further extension is introduced.

A clear roadmap to near-24/7

The proposed 1:30am opening is part of Phase 1 in a multi-stage programme to deliver near-24/7 settlement by the end of the decade.

Members have urged the Bank to publish a clear, long-term roadmap, setting out milestones, dependencies, and timelines beyond 2027. This would help firms plan technology upgrades, allocate resources, and coordinate implementation across the wider payments ecosystem.

Building the future of UK payments

Extending settlement hours may seem like a technical change, but it represents a fundamental step in how the UK’s financial system operates. It aligns with global moves towards always-on payments and underpins the continued modernisation of the UK’s financial infrastructure.

UK Finance and its members look forward to continuing close engagement with the Bank of England as the UK moves towards a safe, efficient, and globally competitive payments system that operates around the clock.

To read our full response to the consultation, click the below link:

Proposal to extend RT2 and CHAPS settlement hours