Am I eligible for NS&I compensation with up to £476m in deposits affected?
National Savings and Investments (NS&I) is set to pay out millions of pounds to customers after a series of errors were discovered.
The Treasury-backed savings bank has apologized after reports emerged of poor customer service as well as scores of bereaved families not receiving the money they were owed.
The banking giant provides various savings and investments to more than 24 million customers, of which approximately 22 million are Premium Bond holders.
A program to reconnect people with their cash is currently underway, with up to £476 million of deposits affected. The bank also stated that those affected may be “compensated” for the issue.
Many families of deceased depositors complained that NS&I withheld Premium Bond awards from them; some reported delayed payments and lost investments.
The savings bank is in talks with the Treasury to refund 37,500 savers whose money may have been lost.
NS&I had notified the Treasury of an operational failure to comprehensively track the accounts of some deceased customers, Pensions Minister Torsten Bell told the House of Commons.
He said: “The consequence of this failure is that not all dispositions are determined by NS&I and their estates are not paid to their beneficiaries as they should be.
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“In particular, processes failed to comprehensively track some customer assets that were spread across multiple profiles or systems.”
An NS&I spokesman said: “We recognize that dealing with bereavement can be challenging and would like to apologize to anyone who did not receive the customer service they should have expected from NS&I, especially at such a sensitive time.”
Am I entitled to compensation?
Mr Bell confirmed further details were expected to be set out by NS&I in May regarding possible compensation as well as how the missing funds would be returned.
It is unclear at this stage whether those affected will be paid compensation in addition to the refund of their missing funds.
The pensions minister told the House of Commons: “The Treasury commissioned external advisers, including EY and legal experts, to determine the scale of these errors.
“Through this study, NS&I reviewed more than 34 million customer records.
“This work is ongoing but indicates a maximum of 37,500 customers and deposits of up to £476 million were affected.
“Three quarters of the cases relate to the period between 2008 and 2025.
“This number is likely to decrease in the future, but while it represents less than 0.2 percent of NS&I customers, it is still very large.”
“There is no need for individuals to waste money on a claims management company or lawyer,” he added, emphasizing that the onus is on NS&I to contact people.
In its latest guidance, NS&I said: “NS&I apologizes and is extremely sorry for these errors. It is working hard to ensure that everyone affected is paid what is owed to them. Families, beneficiaries and estates of deceased clients do not need to take immediate action. NS&I will contact affected estates and will release further information for the beneficiaries of those estates in due course.”
In one case NS&I reportedly failed to inform the daughter of a deceased guardian about her mother’s bonds and also lost track of £2,000 of bonds she was holding. Telegram.
In another case, NS&I allegedly reimbursed a woman’s family for tax interest and legal costs after losing track of two accounts linked to an investment portfolio.
Mr Bell said former HM Revenue and Customs (HMRC) boss Sir Jim Harra would replace Dax Harkins as chief executive of NS&I on an interim basis to “provide a fresh start”.
NS&I was also under the spotlight in February, when the Public Accounts Committee (PAC) said it was unsure of NS&I’s ability to successfully deliver the transformation program designed to modernize its operations.
The committee said the total cost of the program reached an estimated £3bn by 2024 and that NS&I was overconfident in its ability to deliver this.
The spending watchdog said there would be risks to NS&I’s business, and particularly its customers, if the scheme failed.
