NS&I has initiated communication with numerous families who have experienced financial losses due to the passing of a family member. The government-backed provider of savings and Premium Bonds failed to locate accounts of some deceased clients, resulting in delayed or missed payments to beneficiaries, primarily occurring between 2008 and 2025.
Recent estimates indicate that NS&I is accountable for £367,000 owed to 34,000 estates, a reduction from the initial figures of 37,500 families with claims totaling £476,000. NS&I, serving over 24 million customers, is now reaching out to affected estates with holdings exceeding £10 to facilitate the return of funds.
The payouts will include accrued interest or the Bank of England base rate plus one percentage point. NS&I plans to dispatch letters to affected parties starting May 27, 2026, with payments following soon after, aiming to conclude the contact process by 2027.
Those expecting payments need not take any action as NS&I will directly contact legal representatives of impacted estates. The payments will be exempt from inheritance tax, and executors will not be liable for income tax on pre-death interest.
NS&I has rectified its trace processes for bereavement claims and introduced a new system in January 2026, albeit leading to processing delays. Acknowledging the inconvenience caused, NS&I has recruited additional staff to expedite the resolution of bereavement claims by autumn 2026.
Following the appointment of Sir Jim Harra as interim chief executive, NS&I has expressed regret over the issue and emphasized the importance of promptly addressing all bereavement claims to ensure affected individuals are treated with empathy and efficiency.
