NS&I Faces Hundreds of Millions in Payouts Over Missing Savings Scandal

National Savings and Investments (NS&I) is preparing to make a significant payout to customers who have been affected by a savings scandal. The bank is expected to repay hundreds of millions of pounds to approximately 37,000 people whose money was misplaced due to historical failings.

The government-backed savings institution is in discussions with the Treasury to compensate these customers, with the exact amount yet to be determined. This payout would not be considered compensation but rather a reimbursement for money that customers did not receive.

The scandal involves reports of bereaved families not receiving money that was rightfully theirs, as well as complaints that NS&I failed to pay out premium bond prizes to the families of deceased savers. The bank has apologized for the poor customer service, particularly during sensitive times.

The pensions minister, Torsten Bell, is expected to address the issue in a statement to the House of Commons. NS&I holds over £100bn for around 26 million customers and is one of the largest savings organizations in the UK. The bank recently faced criticism over the spiralling cost of its modernisation programme, which has risen from £1.3bn to £3bn.

A spokesperson for NS&I said: “We recognise that dealing with bereavement can be challenging and would like to apologise to anyone who has not received the customer service from NS&I that they should expect, particularly at such a sensitive time.”