The Financial Services Compensation Scheme (FSCS) provides a guarantee to bank depositors for the first £35,000. They make a levy on the banks who pay into a contingency fund to cover payouts. This time last year (september 2007) there was only £4.4 million. So you had better be in the front of the line!
Heres some comments on the situation.
Anyone know how much there is in there now?