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NS&I To Pay £476m in Compensation – Are you Owed Money?

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NS&I To Pay £476m in Compensation – Are you Owed Money?

Over 37,000 people could receive part of £476m in compensation from National Savings and Investments (NS&I) due to a major system fault.

Bereaved families were unable to receive funds that they claim were rightfully theirs due to administrative errors.

Originally set up in 1861 as the Post Office Savings Bank, NS&I is a government-backed financial provider with more than 24 million customers.

That includes more than 22 million Premium Bond holders who are entered into a monthly prize draw.

Pensions minister, Torsten Bell, confirmed that 37,500 customers were affected by the fault following an investigation.

Dax Harkins resigned as chief executive of NS&I following the announcement and has been replaced by former HMRC boss Sir Jim Harra.

How did the error happen?

NS&I revealed that the errors happened when the estates of deceased customers were not always repaid from all of their accounts after a bereavement claim.

The issue has now been resolved and NS&I issued the following apology to those affected:

“NS&I apologises and is extremely sorry for these errors. It is working hard to ensure everybody affected is paid what is owed to them.

“Families, beneficiaries and deceased customers’ estates do not need to take any immediate action.

“NS&I will contact estates that are affected and will publish further information for the beneficiaries of those estates in due course.”

How do you claim compensation?
NS&I said it will ensure that “customers’ estates are appropriately compensated.”

Although work to identify those affected is still ongoing, anyone due compensation will be contacted directly.

NS&I must publish a delivery plan in May on how it will process the compensation fund and ensure savers are reunited with their money along with interest.

Approximately 37,500 savers will be repaid a share of around £476 million in compensation which works out to £12,693 on average per person.

Brean Horne
Brean Horne Personal Finance Writer

Keeping on top of your finances can feel overwhelming, especially with the pressures of everyday life.

But with the right help, you can make the best decisions with your money to build stability and thrive.

As a personal finance writer with almost a decade of experience, I’m dedicated to helping you navigate the (often) confusing world of money management and financial planning.

My goal is to empower you with accessible tools, tips and insights so that you can take steps to improve your financial wellbeing and build the life you truly desire.

Whether you’re creating your first budget or planning for a major life goal, I’m here to help you cut through the noise and make mindful, well-informed choices with your money.

Throughout my career, I’ve covered the latest news affecting your finances and consumer rights at publications including Forbes Advisor, NerdWallet and Which?. I’ve also delved into the nuts and bolts of financial products and services to help you understand how they work and whether they’re right for you.

Through speaking with case studies, hosting workshops and fielding questions on podcasts, I’ve developed a deeper understanding of financial concerns arising at different life stages and effective solutions to overcome them.

Here at Investing Insiders, I’ll keep delving into the finer details of personal finance to uncover the key information you need to financially flourish.

Some of the places I’ve been quoted in the press include:
Seven tips to save cash but still have plenty of fun this Christmas | The Mirror
5 things you didn’t realise were affecting your credit score | MoneyWeek
Five things to tell your child about the cost of living | ABC Magazine
How to cope if you’re concerned for your financial future right now | Metro

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