By Basant El-Faramawy
National Savings and Investments (NS&I) has paid more than £3 million in repayments and compensation to 613 estates as part of a scheme addressing failures that left bereaved families missing out on savings pots. The Treasury-backed provider said it is contacting affected estates with holdings of £10 or more to reunite them with the full value of assets that should have been returned earlier.
Compensation Scheme Progress
NS&I expects the compensation scheme to be completed in the first half of 2027. Payments include the higher of either the interest accrued since the error occurred or the Bank of England base rate plus one percentage point. Interim chief executive Sir Jim Harra apologized to those affected and said repaying estates and restoring service standards are key steps in putting things right.
Operational Failure and Resolution
In December, NS&I notified the Treasury of an operational failure to comprehensively trace accounts of some deceased customers. The errors occurred because the search process used for bereavement claims failed to identify all relevant accounts. NS&I said the issue was resolved for current and new claims from January, with measures introduced to prevent recurrence. A more robust tracing process temporarily increased response times to eight weeks over spring and early summer, but the provider now responds to new claims within its 14-day service standard.
Revised Estimates
Initial estimates in March suggested 37,500 estates worth £476 million may have been affected. By May, figures were revised to 34,000 estates and £367 million. The current estimate is just under 30,300 estates with a value up to £181.9 million, of which up to 15,600 have holdings of £10 or more. Some cases initially treated as affected have been excluded because claims were already completed through normal processing.
