The savings and Premium Bonds provider, which is backed by the Treasury, failed to trace accounts held by some customers when they died
NS&I is contacting families from this week(Image: Getty Images)
NS&I has started contacting thousands of bereaved families who have missed out on savings following the death of a loved one.
The savings and Premium Bonds provider, which is backed by the Treasury, failed to trace accounts held by some customers when they died.
As a result, some savings and Premium Bond prizes were not paid to their loved ones, or were significantly delayed. The majority of the cases happened between 2008 to 2025.
NS&I now estimates it owes £367,000 to 34,000 estates. It previously said 37,500 families with a total claims value of £476,000 may have been impacted, but these figures have been reduced following a review. NS&I said this number is likely to reduce further.
NS&I offers a range of savings and investments to more than 24 million customers, including more than 22 million Premium Bonds holders.
In an update this week, NS&I says it has started contacting all affected estates with holdings of £10 or more to reunite them with the funds.
The payouts will also either the higher of the interest accrued since the error occurred, or the Bank of England base rate plus one percentage point.
On the NS&I website, it explains: “We’ll start to send letters to those affected from 27 May 2026. The payment will follow soon after. Letters will be despatched weekly and we expect to finish contacting people’s estates in 2027.”
It will directly contact the legal representatives of those estates affected. If you believe you are expecting a payment, you should not need to do anything – NS&I will get in contact.
NS&I has confirmed the payments will be exempt from inheritance tax. The administration of estates, the personal representatives or executors will also not be liable for income tax ordinarily due on interest accrued before death or in the administration period.
NS&I said the trace process used when handling a bereavement claim has been resolved for current and a new system was introduced in January 2026. But it added that the new process takes longer than before and has resulted in delays.
It apologised to those affected by these delays and said it has brought in 100 extra staff to support this work and ensure it returns to processing bereavement claims within usual service standards by autumn 2026.
In March, it was announced that NS&I chief executive Dax Harkins was being replaced by former HM Revenue and Customs (HMRC) boss Sir Jim Harra.
Sir Jim, interim chief executive, NS&I, said last week: “I apologise to everyone who has been affected by this issue. Beginning the process of repaying these funds is a key step in putting things right.
“We need to ensure that everybody who makes a bereavement claim with NS&I is treated sympathetically and has their case processed as quickly as possible.
“Today, this process is taking longer than it should. We have brought in additional staff to get the service back on track.”
Leave a comment