using their bank cards for contactless purchases could soon see big changes under new proposals from the government.

Currently, if your weekly grocery bill exceeds £100, you need to insert your card into the chip and pin machine and input your pin.

However, with food inflation on the rise, £100 doesn't stretch as far as it once did in supermarkets such as Sainsbury's, Tesco, Aldi, Asda, Morrisons, and Waitrose. In response to this, the Financial Conduct Authority (FCA) has announced that it is considering increasing the contactless limit.

In a letter addressing the Government's steps towards supporting economic growth, the FCA suggested the possibility of removing the £100 contactless limit. The letter suggested they "could also remove the £100 contactless limit, allowing firms and customers greater flexibility, drawing on US experience, and levelling the playing field with digital wallets".

The FCA is also considering making changes to rules, which could be good news for home buyers. FCA chief executive Nikhil Rathi stated in the letter that the regulator plans to "begin simplifying responsible lending and advice rules for mortgages, supporting home ownership and opening a discussion on the balance between access to lending and levels of defaults."

The regulatory body has also expressed its intention to collaborate with the Government to eliminate "overlapping standards" such as the Mortgage Charter. This charter, which many lenders have adopted, was designed to assist borrowers struggling with repayments in a high mortgage rate climate, although various forms of support were already being provided by banks and building societies.

In the aftermath of the 2008 financial crisis, mortgage lending regulations were tightened to prevent a recurrence of irresponsible lending practices. The FCA has suggested that it could introduce new digital service standards, such as requiring firms to accept electronic verification of death to speed up claims after someone passes.

The regulator also aims to simplify the processes for starting and expanding a business. Their aim is to show "we are 'minded to approve' promising start-ups to help them secure funding".

The FCA will also aim to work with the Treasury to develop a legislative framework "that enables relevant firms to conduct limited regulated activities with streamlined conditions".