Families of Premium Bonds savers are grappling with massive delays after a £470 million error at NS&I has left thousands waiting for their rightful funds. Celia Dowell, an 85-year-old from Marston Green in the West Midlands, is just one of 37,500 people caught up in this ongoing Premium Bonds bereavement scandal.
Celia’s late husband, Robert, who passed away from a pulmonary disease just before Christmas, held Premium Bonds worth over £18,000. Since his death, Celia has struggled to claim these funds due to significant administrative backlogs at NS&I.
The delays affect a total of up to £476 million tied to accounts of deceased savers. The situation escalated to the point where NS&I’s chief executive, Dax Harkins, resigned last month amid the public outcry.
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“I was simply told there is a heavy backlog for bereaved families,” Celia explained. “I just can’t understand why it’s taking so long – it feels impossible to get any money out.”
Another affected saver, 71-year-old Nustran Bryce from Glasgow, shared her experience dealing with NS&I. “Other financial institutions have dedicated bereavement teams that make it easy to manage. NS&I feels disorganised—like the right hand doesn’t know what the left hand is doing. Their phone system is a complete nightmare; it’s just shambolic.”
An NS&I spokesperson stated: “We have been in contact with Mrs Dowell, arranged for her late husband’s savings to be paid directly to her, and agreed a goodwill payment for the distress and inconvenience caused. We apologise to any customer who has experienced delays or poor service.”
The spokesperson also clarified that NS&I is not part of the Government’s Tell Us Once service, which updates departments handling benefits, passports, and pensions but does not extend to banking or investment services that require direct contact with executors.
This ongoing Premium Bonds issue highlights the challenges bereaved families face when accessing financial assets amid administrative backlogs and organisational shortcomings.