NS&I has initiated communication with numerous families who have experienced financial losses due to the death of a family member. The savings and investment provider, supported by the Treasury, encountered difficulties in locating accounts belonging to deceased clients, leading to delays or non-payment of savings and Premium Bond prizes to beneficiaries. The incidents mainly occurred between 2008 and 2025.
A total of £367,000 is estimated to be owed to approximately 34,000 estates by NS&I, a reduction from the initial figures of 37,500 families and £476,000 in claims following a reassessment. The institution anticipates further reductions in these numbers.
NS&I, serving over 24 million customers, including more than 22 million Premium Bonds holders, has begun reaching out to affected estates holding £10 or more to facilitate the return of funds.
The payouts will comprise either the interest accumulated since the error or the Bank of England base rate plus one percentage point. Letters informing the affected parties of the restitution process will be dispatched starting May 27, 2026, with completion expected by 2027.
NS&I will directly engage with legal representatives of impacted estates, eliminating the need for action from potential beneficiaries awaiting payments. The payments are confirmed to be exempt from inheritance tax, and the administrators of the estates will not be responsible for income tax on interest accrued pre-death or during the estate administration period.
NS&I mentioned that the issues in tracing accounts during bereavement claims have been resolved, with a new system implemented in January 2026. However, the new process, though more comprehensive, has led to delays. To address this, 100 additional staff have been employed to expedite the resolution of bereavement claims to normal service levels by fall 2026.
In recent developments, NS&I appointed former HMRC chief Sir Jim Harra as interim chief executive, succeeding Dax Harkins. Sir Jim expressed regret over the delays faced by claimants and emphasized the importance of swift and compassionate handling of bereavement claims by NS&I. Additional resources have been allocated to streamline the process and enhance customer service.