NS&I has initiated contact with numerous families who have lost out on savings after a family member’s passing. The government-backed savings and Premium Bonds provider failed to locate accounts of deceased customers, leading to delays or non-payment of savings and prizes, primarily occurring between 2008 and 2025.
Estimating a total debt of £367,000 to 34,000 estates, NS&I revised initial figures that suggested 37,500 families were affected, now anticipating further reductions. With over 24 million customers, including more than 22 million Premium Bonds holders, NS&I has commenced reaching out to affected estates holding £10 or more 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 clarified that letters will be dispatched weekly to affected parties starting from May 27, 2026, with completion expected in 2027.
In instances where payments are due, NS&I will directly contact the legal representatives of the estates. Notably, the payments will be exempt from inheritance tax, and the administrators or executors will not be liable for income tax on pre-death interest or during the administration period.
NS&I acknowledged the delays in the trace process for bereavement claims and implemented a new system in January 2026, albeit experiencing longer processing times and delays. To address this, the organization has recruited 100 additional staff to expedite the handling of bereavement claims by autumn 2026.
Following the appointment of former HMRC boss Sir Jim Harra as interim chief executive, NS&I expressed regret for the inconveniences caused by the delays and emphasized the importance of promptly addressing all bereavement claims. Sir Jim underscored the commitment to improving service standards and ensuring timely processing for those affected.
