National Savings and Investments has apologised to customers and promised compensation after errors affecting tens of thousands of Premium Bond holders came to light, with bereaved families among those who say they were wrongly denied funds belonging to deceased relatives.
Pensions Minister Torsten Bell updated the House of Commons on the matter, confirming that NS&I was prioritising reuniting affected customers with their money “as soon as possible” and that compensation where appropriate would be paid. He was clear that the burden of resolving the situation rested with NS&I rather than customers themselves.
The scale of the problem emerged after the institution analysed more than 34 million customer records. Up to around 37,500 customers are believed to have been affected, with a maximum of approximately £470 million in deposits caught up in the errors. Bell acknowledged that while the figure represents less than 0.2 per cent of NS&I’s customer base, “it is still far too many.”
Among those who say they were let down are the families of deceased savers who claim Premium Bond winnings were withheld or significantly delayed rather than being passed on to beneficiaries. In some cases, investments appear to have been lost track of entirely. Reports indicate that certain customers had no option but to instruct solicitors to recover funds, leaving them facing unexpected legal costs at an already difficult time.
One case reported by the Daily Telegraph involved a woman who was never informed about bonds held by her late mother, while NS&I also lost track of £2,000 in Premium Bonds belonging to the woman herself.
NS&I issued an apology, with a spokesperson saying the institution recognised that “dealing with bereavement can be challenging” and expressing regret toward anyone who had not received the level of service they should expect, “particularly at such a sensitive time.”
Zoe Gillespie, investment manager at RBC Brewin Dolphin, said the full extent of the problem remained unclear and pointed to a broader context of institutional difficulty. “NS&I is currently working through a £3 billion modernisation programme which is years behind, so there appears to be some issues with potential tech or customer service problems,” she said, adding that the organisation needed to “get on the front foot” to restore confidence among savers and investors.
The government has said NS&I will be expected to contact affected customers directly rather than placing the responsibility on individuals to come forward.
