National Savings & Investments

Caroline Nokes Excerpts

Thursday 26th March 2026 Commons Chamber

[The Parliamentary Secretary to the Treasury (Torsten Bell)]

I would like to make a statement regarding National Savings & Investments. On 18 December 2025, NS&I notified the Treasury of an operational failure to comprehensively trace accounts for some customers who had passed away. The result of that failure is that not all savings were identified by NS&I and paid to the beneficiaries of their estates as they should have been. Specifically, processes failed to comprehensively trace some customer holdings where they were spread across multiple profiles or systems.

Hon. Members will be aware of historical challenges in financial services in this regard. For example, the Financial Conduct Authority took enforcement action in 2018 against Santander relating to the tracing of accounts following notification that a customer had passed on. That received significant attention at the time. However, what is now clear is that NS&I and its suppliers did not respond to those warning signs as fully as I and, more importantly, their customers, would expect, and nor did the last Government act.

Bereaved families, whose loved ones held accounts with NS&I, will rightly be anxious about this news, so let me turn to the action that we have taken and the further steps that we are putting in place today. Since being notified, the Treasury has ensured that external advisers, including EY and legal experts, have been engaged to identify the scale of the errors. Through this work, NS&I has reviewed over 34 million customer records. That work is ongoing, but it points to up to a maximum of around 37,500 customers, with up to £476 million in deposits, being affected. Three quarters of cases relate to the period between 2008 and 2025. The number is likely to fall in future, but although it represents less than 0.2% of NS&I’s customers, that is still far too many.

NS&I is not regulated by the FCA, but the Government expect it to live up to the same standards as regulated deposit-taking banks. It is therefore right that NS&I is apologising today. The Government’s priorities now are threefold. First—and immediately, to ensure that the problem is no longer taking place—NS&I has received written assurances from its customer-facing supplier Sopra Steria that the causes of the tracing issue have been addressed and will not affect customers going forward. Its previous supplier, Atos, has also committed to full co-operation, given that it was responsible for handling bereavement cases until 2025.

Our second priority is to ensure that we reunite beneficiaries of those customers who have passed away with any funds that NS&I holds. Those deposits belong to customers. Returning them in no way represents an additional liability to the taxpayer, and for the avoidance of doubt, let me spell out that those savings are 100% safe. The issue is about tracing and not the security of any funds, but it is important, none the less. NS&I has put in place a dedicated programme team and hired an additional 100 staff. I have asked it to publish a delivery plan in May detailing how they will take forward the work to reunite funds with their owners. This will cover: the number of cases affected; how NS&I will proactively contact representatives of estates to ensure they receive the funds that they are due, including interest on savings; and the compensation that, where appropriate, will be paid.

There is no need for individuals to waste money on a claims management company or solicitor. I reassure people that the onus is not on them but on NS&I to act—to contact estate representatives and to reconnect beneficiaries with the money they are due. Further information is available on the NS&I website and its contact centre is open seven days a week. I will also ensure that MPs have a dedicated means of contacting NS&I to raise any constituency cases directly.

Dealing with bereavement is always challenging, and I am sure that we all recognise that finding out, as party of that, that such errors have been made could be distressing. We are committed to ensuring that NS&I supports those who have experienced a loss by making the process for reuniting beneficiaries with their money as easy as possible. We also recognise that there may be tax implications for affected estates and want to avoid bereaved families facing disproportionate disruption and administrative costs as a result of the error. We are exploring what support we can provide and will set this out alongside NS&I’s delivery plan in May.

Current NS&I customers can access their accounts as normal. Any wishing to trace old accounts can use the tracing services direct through NS&I or the My Lost Account website. Because in the past some searches have focused too narrowly on searching for specific accounts, I have also instructed NS&I to make it simpler for people to search for all the accounts or products that they might hold.

Our third priority is institutional. NS&I plays an important role, helping the public to save and providing a material contribution towards Government financing. The organisation must continue to play that role while addressing the tracing issues that I have laid out today. It must also complete what has been a challenging business transformation programme. The programme was put in place back in 2020, but with little progress made in the previous Parliament, as the recent Public Accounts Committee report has set out. This Government have appointed David Goldstone, former chief operating officer at the Ministry of Defence, to support NS&I to bring the programme back on track.

With all this in mind, I also want to make sure that NS&I has the very best leadership in place. Effective from today, I have appointed Sir Jim Harra—former first permanent secretary at His Majesty’s Revenue and Customs—to take over as the chief executive of NS&I on an interim basis, to provide a fresh start for NS&I’s next phase of development. I also recognise the 22 years of public service of his predecessor Dax Harkins at NS&I.

As well as providing leadership to the organisation, Sir Jim will undertake a review over the next three months to spell out in detail the background to the tracing problem and to set out what lessons must be learned by NS&I. I have discussed this with Sir Jim and am confident that his extensive experience will help guide NS&I in the months ahead. I will ensure that Sir Jim’s review is shared with the Chairs of the Treasury and Public Accounts Committees upon completion.

NS&I holds over £240 billion of savings belonging to 24 million customers. It is an organisation that is valued by those saving with it and by this Government. I repeat NS&I’s apology to its customers and reiterate that every penny of their savings is safe, and—as always—they are 100% guaranteed by the Treasury. I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

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[Torsten Bell]

As always, I thank my hon. Friend for his important question. He is absolutely right—the priority for us is to ensure that people are reunited with their money and that they do not incur costs in trying to get it back. That is why I have been so clear with NS&I over the past few months that it makes sure that it understands the problem it is dealing with and that it needs to set out a delivery plan as soon as May for how it will reunite people with their money. That will involve contacting representatives of estates in the first instance, and that is what people need to rely on. As I said, I want to be clear with the public today that the onus is not on them; the onus is on NS&I to contact the people whose funds deserve to be reunited with them, and that is what we will all be focused on.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Bobby Dean (Carshalton and Wallington) (LD)]

I thank the Minister for advance sight of his statement and for the action he has outlined that the Government are already undertaking. He will know that customers often choose National Savings & Investments because it is Government-backed, and because that provides them with extra reassurance that their savings will be safe. The news that the money of tens of thousands of people was essentially lost for a period of time will be a hammer blow to trust in that institution, and the fact that these cases involve bereaved families makes it particularly damaging.

To restore trust in the institution, it will be vital that justice is served comprehensively and swiftly. Will the Minister confirm the estimated timeline for identifying and contacting every family affected? Have the Government committed not only to reimbursing or returning the money that the families are due, but compensating them fully to reflect the distress that has been caused? He has already mentioned interest; will he confirm that all that interest will be returned? Will legal costs also be reimbursed? Some of the bereaved families resorted to legal action to get what they believed they were owed, and I am sure that they will feel that they are entitled to be reimbursed on that as well. Will the Government now carry out a full independent investigation to fully learn the lessons of what happened and ensure that there will be much stronger oversight of the system going forward?

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[Torsten Bell]

My hon. Friend is absolutely right that administering the affairs of deceased family members or friends is always challenging, both emotionally and administratively. That is why it is so important that we get this right, now that we have set out the scale of the problem. On his specific question, I encourage him to support constituents. That is why I have said that I will require NS&I to put in place a direct method of communication for MPs who wish to raise constituency cases, and obviously I will be happy to meet him or anybody else who has constituents affected.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the Minister for his statement and for his very thorough responses.