Minister for Pensions (): On 19 May 2026, I
updated Parliament on the steps being taken by National Savings
and Investments (NS&I) to address historic failures in the
handling of some bereavement claims and the remediation scheme
established to reunite affected estates with funds that should
have been returned earlier [HCWS44]. I reported that up to 34,000
estates had been affected by this issue with a total value of
£367 million.
The Treasury instructed NS&I to put this right swiftly and
fairly, requiring a delivery plan detailing how they intended to
do so be published in May [1]. It also appointed Sir
, former HMRC First Permanent Secretary, to take over as
Chief Executive of NS&I on an interim basis, to provide a
fresh start. Today, NS&I has updated on its delivery of its
remediation programme, which it will continue to do on a
quarterly basis until completion. [2]
As detailed in its update, NS&I has continued to analyse its
data to establish how many estates have been affected by its
bereavement claims issue. As such the total number of estates
affected has fallen to 30,300 cases, with a total value of
approximately £181.9 million. Of these, NS&I is in the
process of contacting all affected estates with holdings of £10
or more to reunite them with the full value of their holdings
that should have been returned to them earlier and to compensate
them. As reported in the update, this will see up to 15,600
estates with a total value of up to £181.83 million contacted.
The remediation programme remains underway, and NS&I
continues to expect to complete this programme in the first half
of 2027.
In addition, I have laid today the National Savings and
Investments Annual Report and Accounts and Product Accounts
2025-26 [HC 703]. Alongside this, NS&I is also publishing an
Accounting Officer assessment relating to its transformation
programme.[3]
The Annual Report and Accounts include a provision for the
estimated costs of the remediation scheme. As the issue emerged
after the Supplementary Estimate process had concluded, NS&I
was unable to seek sufficient additional provision through that
process. As a consequence, the Comptroller and Auditor General
has issued an excess vote qualification on the Accounts.
Today's publications also provide an update on NS&I's
transformation programme. An updated business case setting out
the delivery of a simplified solution has now been approved, and
NS&I has published an accompanying Accounting Officer
assessment setting out the rationale for proceeding with the
revised approach and the steps being taken to address issues
identified by independent reviews, the National Audit Office and
the Public Accounts Committee. To increase its oversight of the
programme, the Treasury has established a Sponsor and Oversight
Board that will act as the principal governance forum for
considering and determining material programme trade-offs
affecting cost, timelines, scope and benefits and provide
Ministers with assurance that the programme remains on track.
NS&I continues to be key to the Government's debt financing
programme. However, this has been a challenging year for the
organisation. As I committed to the House, NS&I's interim
Chief Executive, Sir has undertaken a review into background to the
bereavement claims issue and what lessons must be learned. That
review will be published by the end of the calendar year. I have
also appointed Luke Jensen, as the permanent Chair to the
NS&I Board, further strengthening the organisation's
leadership and oversight as it delivers its priorities.
[1] https://www.nsandi.com/about-us/press-releases/2026/nsi-bereavement-claims-delivery-plan(opens
in a new tab)
[2] www.nsandi.com/about-us/press-releases/2026/nsi-bereavement-claims-quarterly-update(opens
in a new tab)
[3] https://www.gov.uk/government/publications/government-major-projects-portfolio-accounting-officer-assessment-nsi
