NS&I to Contact 34,000 Estates Over Bereavement Claim Errors

National Savings and Investments said it will begin contacting affected families in the coming weeks to return funds that were not paid after customers died. The bank stated that errors in identifying all NS&I products held by deceased customers left the estates of 34,000 people short of money.

The total value of the unpaid claims is £476 million. NS&I said all affected estates holding £10 or more will be contacted to reunite them with the full value of those holdings.

Funds will start to be paid out in the coming months and should be completed in the first half of next year. Affected holdings will be adjusted upward to include either the interest accrued since the error occurred or the Bank of England base rate plus one percentage point, whichever is higher.

The bank said the funds will be exempt from inheritance tax and income tax. Affected families will receive details on how to request reimbursement for reasonable legal costs caused by the delay.

Brough, 82, from Doncaster, said it took six months to make progress accessing her husband's savings after his death in 2024. She said NS&I required a grant of probate even though her solicitor said it was not needed. Rhona Edwards said her husband Alex died in November and she completed all paperwork after gaining probate for his £50,000 in premium bonds.

By March she was still waiting for NS&I to release the funds.

Harra, the interim chief executive of NS&I, said the process of repaying the funds is a key step in putting things right. He said the bank has brought in additional staff to process claims more quickly. NS&I said the error that led to the issue has been fixed and a more robust process for bereavement claims was introduced in January. Affected families do not need to take any action at this stage.