NS&I has confirmed that an operational error affecting the accounts of deceased savers means thousands of bereaved families are due payouts, with an estimated £181.9 million owed to 30,300 affected families across the country.
The state-owned bank began writing to affected families in May of this year, but confirmed that more than 15,000 families are yet to be contacted. Repayments are not expected to be fully complete until the middle of 2027.
Background of the error
The mistake was revealed in Parliament earlier in 2026 and resulted in the resignation of NS&I chief executive Dax Harkins. The average payout made so far is £5,486, with the single highest repayment received by a family being £269,225.
Families owed less than £10 will not be contacted and must contact NS&I themselves. If an affected family is to receive a payment, a warrant (which works like a cheque) will arrive within 15 days of receiving the letter.
Compensation and tracing efforts
Families due to receive the repayments will receive the original amount owed and an interest payment to compensate for the mistake. NS&I said fewer than 700 affected families have received payments so far.
NS&I said that it is working with "specialist data search providers" to trace the correct address and contact details for everyone affected, as reported by Money Saving Expert. It also said that where this isn't possible, it will continue to hold the funds, and the money will continue to accrue interest until the individual gets in touch.
Next steps for affected families
Money Saving Expert urges people to contact NS&I's general helpline on 0800 092 1286 if they believe they are owed money but do not hear anything within the given timeline.
Additionally, NS&I said it is aware that some may incur additional professional services costs, such as legal or administrative fees, as a result of receiving an unexpected payment. It will provide details on how to request reimbursement for these costs in the letters sent to those affected, and each request will be reviewed on a case-by-case basis.
On May 19, 2026, Pensions Minister Torsten Bell MP confirmed to the House of Commons that all payments owed will be exempt from Inheritance Tax.
