The Estate Registry (TER), a leading UK provider of end-of-life admin services, including NotifyNOW, Settld and InheritNOW, welcomes news that National Savings and Investments (NS&I) has begun contacting thousands of bereaved families affected by a significant savings scandal, but urges the bank to expedite the process as speedily as possible.
It follows the revelation of long-standing issues in tracing accounts belonging to deceased customers. NS&I has confirmed the total amount owed to customers is £367 million, affecting up to 34,000 estates.
In March 2026, NS&I’s chief executive resigned after it was discovered that the institution had failed to properly identify and repay funds from these accounts.
Howard Enders, Chief Operating Officer at The Estate Registry said:
“As we now know, up to 34,000 estates have been affected by these errors going back to 2008.
“It is good that the process of repatriation is under way, but we urge NS&I to put their efforts into carrying out the work without any further delay. Many families have experienced financial hardship and uncertainty following bereavement, and we hope to see an appropriate compensation scheme for those affected.”
Sir Jim Harra, appointed as interim chief executive, has expressed deep regret over the situation.
The errors occurred when the search process used when handling bereavement claims failed to identify all relevant NS&I products. It’s now been resolved for current and new bereavement claims from January 2026, with operational processes updated to prevent recurrence.
However, NS&I has acknowledged that the new, more thorough search process takes longer than before, resulting in delays to current and new claims. It has brought in additional staff to get the service back on track.
NS&I has committed to contacting the personal representatives and executors of estates with holdings of £10 or more directly. Letters will be sent out in a phased order with the first cohort being contacted immediately, followed by payments shortly afterwards. The bank aims to complete this remediation programme in the first half of 2027.
To ensure estates have not been disadvantaged by the delay, payments will be adjusted upwards by whichever number is higher: the interest accrued since the error occurred, or the Bank of England base rate plus one percentage point.
Additionally, payments that were made as a result of the tracing error will be exempt from inheritance tax. Executors will also not be required to pay income tax on the sums that would ordinarily be due.
The Pensions Minister Torsten Bell has emphasised the importance of this initiative, saying NS&I aims to return holdings to their rightful owners as swiftly as possible.
Bell also highlighted the need for a comprehensive review into the background of the tracing problem at the bank and the lessons to be learned. The savings bank is due to report back before the summer recess.
Enders adds:
“It is essential that those affected receive sympathy and any financial disadvantage that accrued from this error is put right, including expense reimbursement.
“This is an error that should never have occurred. Because the £367 million in unreturned funds relates primarily to accounts that went unclaimed after the original saver passed away, a substantial number of beneficiaries are elderly.
“Although steps are underway to contact those family members, timing is critical. NS&I must resolve this issue as a matter of urgency.”