NS&I has initiated communication with numerous families who have experienced financial losses after the passing of a family member. The government-backed savings and Premium Bonds provider failed to locate accounts belonging to deceased customers, resulting in delayed or missed payments of savings and Premium Bond prizes, primarily occurring between 2008 and 2025.
According to NS&I, an estimated £367,000 is owed to 34,000 estates, a reduction from the initial figures of 37,500 families and £476,000 in claims value. The organization anticipates further reductions in these numbers. NS&I serves over 24 million clients, with more than 22 million holding Premium Bonds.
In a recent update, NS&I disclosed that it has begun reaching out to affected estates with balances exceeding £10 to facilitate the return of funds. The payments will include the accumulated interest or the Bank of England base rate plus one percentage point.
NS&I clarified that it will contact the legal representatives of affected estates directly. Individuals anticipating payments are advised to wait for NS&I to initiate contact. The payments will be exempt from inheritance tax, and the estate administrators will not be liable for income tax on interest accrued before death.
The organization acknowledged the delays in handling bereavement claims and apologized for the inconvenience caused. It has employed additional staff to expedite the process and restore normal service standards by autumn 2026. NS&I announced the appointment of Sir Jim Harra as the interim chief executive, succeeding Dax Harkins, in an effort to address these issues promptly.
Sir Jim expressed regret over the situation, emphasizing the importance of rectifying the matter swiftly and ensuring compassionate treatment for all bereavement claims made with NS&I. He assured that efforts are underway to streamline the process and enhance service efficiency.