An estimated 37,500 individuals remain unable to access funds from deceased relatives’ Premium Bonds accounts at National Savings & Investments (NS&I), totaling nearly £500 million.

NS&I’s chief executive, Dax Harkins, recently resigned following revelations of operational failures in tracing these assets, valued at £476 million. The organization notified the Treasury in December about issues preventing bereaved families from retrieving deposits and prize winnings, sometimes for years.

Issue Resolved with New Leadership

Pensions Minister Torsten Bell informed MPs that the root cause has been addressed. Affected customers will receive compensation where appropriate. Bell described the appointment of former HMRC boss Sir Jim Harra as the new leader as a fresh start. Additional staff now assist in locating and distributing the missing savings, including interest.

“These deposits belong to customers,” Bell stated. “Returning them presents no additional liability to the taxpayer.”

Background on the Premium Bonds Problem

Established in 1861 as the Post Office Savings Bank, NS&I manages Premium Bonds held by more than 22 million of its 24 million customers. These bonds carry a 100% government guarantee.

Bereaved families report years of struggle to withdraw funds from late relatives’ accounts, with some hiring lawyers. The issue stemmed from a flawed bereavement claims process that failed to identify all NS&I products.

A spokesperson stated: “Dealing with bereavement can be challenging. We apologize to anyone who has not received the expected customer service from NS&I, especially during such a sensitive time.”

Parliamentary Criticism and Modernization Woes

Parliament’s spending watchdog labeled NS&I’s £3 billion modernization program, known as Project Rainbow, a “full-spectrum disaster.” Originally budgeted at £1.3 billion, the initiative exposed taxpayers to unacceptable risk with minimal transformation.

Compensation Details and Next Steps

A review of over 34 million customer records identified up to 37,500 affected bereavement claims worth £476 million, three-quarters from 2008 to 2025. NS&I will publish a delivery plan in May, outlining case numbers, proactive outreach to estate representatives, fund distribution with interest, and appropriate compensation.

NS&I takes responsibility for contacting beneficiaries. Individuals need not engage claims management companies or solicitors. Those who pursued legal action or faced other impacts will receive case-by-case assessments.

Existing customers can now more easily search for accounts, with assurances that all deposits remain 100% safe.