Overview
- The error affected bereavement claims made between 2008 and 2025 and left money from up to about 34,000 estates unreturned to executors or relatives.
- NS&I revised an earlier worst-case figure and now says £367 million is owed; it will begin contacting affected estates imminently and aims to finish repayments by 30 June 2027.
- To make good the delay NS&I will pay whichever is greater: the original interest due or the Bank of England base rate plus one percentage point, and repayments will be exempt from inheritance tax with income tax on the interest waived.
- The organisation says failures in its bereavement tracing and search processes, plus limits in legacy paper records and IT systems, meant some holdings were not identified and an internal investigation led by interim chief executive Sir Jim Harra has been launched.
- NS&I has hired about 100 extra staff and introduced a slower verification process that is lengthening responses for estates; the group also faces fresh scrutiny of its Project Rainbow IT overhaul, which is late and over budget.