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NS&I bereavement blunder leaves bank facing big bill
NS&I will compensate about 37,000 customers after failures including delayed payouts and lost investments, with payments potentially reaching £400 million, officials said.
- On Thursday, Pensions Minister Torsten Bell addressed the House of Commons, confirming National Savings and Investments is negotiating compensation for approximately 37,000 customers following widespread administrative failures.
- Operational failures at the lender, which serves 24 million customers, included losing track of accounts and withholding prizes, disproportionately affecting bereaved families seeking rightful funds.
- Treasury officials are assessing a potential bill of up to £400 million, while Financial Ombudsman Service data reveals complaints surged from approximately 73,000 in 2021 to nearly 160,000 by early 2025.
- Conservative Shadow Chancellor Sir Mel Stride condemned what he called "a staggering failure of oversight," while Reform UK's Treasury spokesman Robert Jenrick demanded Chancellor Rachel Reeves explain accountability.
- The Public Accounts Committee previously warned NS&I's £3 billion digital transformation program was years behind schedule, describing the bank as "bullishly confident" despite significant delivery risks.
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26 Articles
26 Articles
Evening Standard+3 Reposted by 3 other sources
NS&I expected to announce compensation payouts for thousands of customers
NS&I could pay as much as £400 million to affected customers, according to reports.
·London, United Kingdom
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Coverage Details
Total News Sources26
Leaning Left4Leaning Right2Center16Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
L 18%
C 73%
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