NS&I chief replaced as £470m missing savings trigger record payout
NS&I chief replaced as £470m missing savings trigger record payout
NS&I replaces its CEO as Britain faces a record payout to bereaved families owed £470m after an operational tracing fault; advisers to uncover scale.
The National Savings and Investments bank has replaced its chief executive on an interim basis as it faces a record payout to bereaved families owed almost £500 million. Officials say about 37,500 people have deposits tied up because of an ongoing operational fault that hindered tracing of accounts, including those belonging to deceased customers. The government insists the system is safe and that savings are guaranteed, but families have spent years chasing missing funds.
Jim Harra, who previously led HM Revenue and Customs, steps in to lead NS&I on an interim basis, taking over from Dax Harkins. External advisers have been hired to quantify the scale of the errors and to help determine how the payments should be processed and prioritised. Ministers have begun discussions with the Treasury about repaying those affected and ensuring appropriate compensation where warranted.
The tracing problem emerged when NS&I acknowledged an “operational failure” to thoroughly trace the estates of deceased customers, leaving some investments unrecovered or misdirected. The government has reiterated that the problem does not threaten the security of savers’ funds and that government guarantees remain in place.
Families have described years of stress and frustration while trying to recover money. Tracy McGuire-Brown, from Newbury, Berkshire, said it took six years to access her late father’s premium bonds, with the claim sometimes treated as if it was a burden rather than a rightful entitlement. She was told that any winnings earned during the delay would not be paid to her and that the funds might be used to settle debts. Phil Fraser of Leeds likewise described poor service and delays in handling his father’s accounts.
Pensions minister Torsten Bell told lawmakers that a full account of the failures will be provided and that advisers will help establish the scope before any compensation is sent out. In the meantime, NS&I is working with the Treasury to determine how best to repay the estates affected and to restore trust in a scheme the government has long portrayed as a straightforward savings option.
