National Savings and Investments (NS&I) is expected to pay out hundreds of millions of pounds to customers following serious concerns over how it has handled accounts, particularly in cases involving bereavement.
The Government-backed institution has been accused of repeated administrative failures stretching back several years. Reports suggest that some bereaved families did not receive funds owed to them, while others faced delays, missing payments, or difficulties tracing investments.
The issue is believed to affect around 37,000 customers. Labour MP, Torsten Bell, is expected to address Parliament on the matter, with a statement scheduled in the House of Commons.
A central concern relates to Premium Bonds. Some families claim that winnings due to deceased holders were not paid out, or that NS&I failed to properly manage accounts after a customer’s death. In certain cases, families reportedly had to seek legal support to recover funds, adding further financial and emotional strain.
NS&I has acknowledged the situation and apologised. A spokesperson said the organisation recognises how difficult bereavement can be and expressed regret to anyone who did not receive the expected level of service during such a sensitive time.
The announcement is likely to prompt further scrutiny over whether compensation costs could ultimately fall on taxpayers.
Originally founded in 1861 as the Post Office Savings Bank, NS&I now serves more than 24 million customers, including over 22 million Premium Bond holders.
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