NS&I Withheld £367 Million From 34,000 Estates For 17 Years in 'Operational Failure' — You Could Be Owed Money

For as long as 17 years, National Savings and Investments sat on £367 million ($494 million) that belonged to people who had died — and their families were none the wiser. Now, after months of political pressure and the resignation of its chief executive, NS&I has finally begun writing to the estates it short-changed.

The government-backed savings provider confirmed on 19 May that around 34,000 estates were affected by what it termed an 'operational failure' in its bereavement claims process, according to MoneyWeek. When a family lodged a claim after a relative's death, NS&I's system failed to locate all of the deceased's accounts. Savings were left sitting untouched, invisible to the very people entitled to them.

When the scandal broke in March 2026, NS&I initially estimated £476 million ($641 million) across 37,500 estates had been affected. A full review brought the total down to £367 million, though NS&I said the figure could fall further. Roughly three quarters of the cases date from between 2008 and 2025.

NS&I Chief Resigned as Former HMRC Boss Takes Over

NS&I chief executive Dax Harkins resigned in March, shortly after the Treasury learned of the failures in December 2025. Pensions Minister Torsten Bell told the House of Commons that NS&I had disclosed 'operational failures' in its fund-tracing processes and announced former HM Revenue and Customs boss Sir Jim Harra as interim replacement — a move Bell described as a 'fresh start', as Which? outlined.

Sir Jim said the issue 'should not have happened' and repeated NS&I's apology.

'Dealing with the death of a loved one is a difficult and upsetting time,' he said. 'We know we need to do all we can to make the process of accessing a deceased saver's NS&I holdings as straightforward as possible for personal representatives and executors of estates.'

NS&I has since hired 100 additional staff to work through the backlog. The provider introduced a more thorough search system in January 2026, but it has slowed processing times. Bereavement claims that normally take two weeks are currently taking eight. NS&I expects waiting times to return to normal by autumn.

How NS&I Plans to Repay Families and What You Should Know

Letters began going out on 27 May to executors and personal representatives of estates with holdings of £10 ($13) or more. NS&I will send them in weekly batches, with payments following 'soon after' each letter. The full process is expected to stretch into mid-2027.

Each letter will confirm the amount owed and explain how estates can reclaim legal or administrative costs that arose from the error. NS&I said it will review those requests on a case-by-case basis.

Alongside the principal, NS&I will pay interest at whichever rate is higher — the amount that would have accrued since the error, or the Bank of England base rate (currently 3.75%) plus one percentage point, giving a floor of 4.75%. Bell confirmed to MPs that repayments will be exempt from inheritance tax. Income tax will not apply to interest accrued before the account holder's death, MoneySavingExpert noted.

Estates with less than £10 in savings will not receive a letter automatically. Those families will need to contact NS&I directly to claim what is owed.

NS&I warned that scammers may try to replicate its correspondence. Legitimate letters will include the name and account details of the deceased and will not ask recipients to provide bank details.

Anyone who believes they may be affected can call NS&I on 0800 092 1286 or lodge a complaint in writing. If the response is unsatisfactory, the case can be escalated to the Financial Ombudsman Service free of charge. Bell also urged families not to pay claims management firms, stressing that NS&I will proactively reach out to those who are owed money.

NS&I holds more than £240 billion ($323 billion) for over 24 million customers, including 22 million Premium Bonds holders. All funds carry a full government guarantee backed by HM Treasury. No money has been lost. The failing was in matching it to the right people.