Errors and delays in tracing accounts at National Savings and Investments (NS&I) have compounded the stress of relatives dealing with the loss of loved ones. Kate Constable described the process of claiming £46,000 in premium bonds belonging to her late mother as “a year of hell”, with the entire claim taking 14 months due to NS&I rules requiring probate for sums over £5,000. She criticised the bank’s outdated paper-based system, saying “they only deal in paper … no one can tell you anything helpful”.
The government-backed savings institution, which holds investments for about 24 million people, has confessed to long-running problems tracing accounts of deceased customers. The issue has left 34,000 bereaved families owed £367m. Sir Jim Harra, a former HMRC boss brought in to resolve the crisis, admitted that a new, more thorough search process introduced this year “takes longer than before, and has, unfortunately resulted in delays to current and new claims”. Response times for bereavement inquiries have increased from two weeks to eight weeks.
Experts suggest the tracing failures may stem from paper-based bonds or accounts opened in the 1950s and 1960s being missed during system migrations. Duncan Stevens, chief executive of account tracing firm Gretel, said: “Being over 160 years old, NS&I’s records will have moved through multiple systems and formats.” Families may be asked to provide evidence of ownership for accounts they did not know existed.
Next week, NS&I staff will contact the first group of affected families, with payments expected to follow shortly. However, putting things right is expected to take at least a year. One bereaved relative, who wished to remain anonymous, described contacting NS&I with details of five accounts belonging to his late father worth about £55,000, only to be told none existed, although a separate account containing £12,000 was found.
