NS&I to repay £367 million.
34,000 estates affected.
Payments begin in months.
Atlas AI
National Savings and Investments (NS&I) said Tuesday it will begin contacting about 34,000 affected estates to release £367 million that was not paid out after customers died. The government-backed savings provider said errors in identifying all products held by some deceased customers meant beneficiaries did not receive the full value of those holdings. NS&I said it has fixed the issue and is now starting the process of putting payments right.
NS&I said it will contact all affected estates with holdings of £10 or more and will provide instructions on how to access the money. Payments are expected to begin in the coming months, with full disbursement scheduled for the first half of next year.
The provider said holdings will be adjusted upward to include either interest accrued since the error occurred or the Bank of England base rate plus one percentage point, whichever is higher. NS&I also said the funds will be exempt from inheritance tax and income tax.
Compensation terms and next steps for estates
NS&I said affected families, beneficiaries and executors do not need to do anything at this stage because the bank will initiate contact directly. It said contact will begin in the coming weeks.
NS&I said it will also give details of the process for requesting reimbursement of reasonable legal costs caused by delays in accessing funds. Some people said they incurred costs after turning to legal help to recover money and complete probate-related paperwork.
Process changes after leadership departure
The problem contributed to the resignation of NS&I’s former chief executive in March. NS&I said the error that led to the shortfalls has been rectified and that it introduced a more robust process for bereavement claims in January.
NS&I has 24 million customers and offers a range of savings and investment products, including premium bonds. The provider said its focus now is on completing repayments and improving how quickly bereavement claims are processed.
NS&I said it expects to provide further updates as repayments begin rolling out in the months ahead.
