NS&I delays and errors leave bereaved UK families chasing premium bonds

What NS&I customers are experiencing

Bereaved families across the UK are reporting significant delays and errors when trying to claim premium bonds belonging to deceased relatives, according to a report published by The Guardian on 26 May 2026.

One of those affected is Kate Constable, whose late mother held £46,000 in premium bonds. Constable spent more than a year attempting to retrieve the money, a process she described in stark terms.

“It has been more than a year of hell.” Kate Constable, bereaved daughter, speaking to The Guardian, May 2026

Her experience is not isolated. The Guardian’s report describes mounting frustration with National Savings and Investments (NS&I), a government-backed savings institution that many UK consumers regard as one of the most trusted places to keep their money.

The probate rule that slows everything down

At the heart of many of the delays is a specific NS&I policy: any claim on a deceased person’s savings that exceeds £5,000 requires the claimant to first obtain a grant of probate (or, in Scotland, confirmation).

Probate is the legal process by which a court officially recognises a will and authorises the executor to administer the estate. In England and Wales, the Probate Registry handles these applications. The process is straightforward in simple cases, but it routinely takes several months. Where there are complications, such as complex estates, disputes, or backlogs at the Probate Registry, it can take considerably longer.

For families dealing with grief while simultaneously navigating legal paperwork, the wait is often a source of serious financial and emotional strain. If the deceased’s savings were a primary source of ready funds, the delay in accessing that money can create immediate hardship.

The current probate application process for England and Wales is described on the government’s official service at GOV.UK.

Why errors on top of delays make things worse

Obtaining probate is only one part of the problem. The Guardian’s reporting indicates that NS&I errors during the claims process have caused further setbacks for some families, extending timescales well beyond what the probate requirement alone would explain.

The nature of those errors has not been specified in detail in the available source material (additional specifics are pending verification from NS&I’s official response). However, the pattern described is consistent with complaints that consumer groups have previously documented at financial institutions: incorrect paperwork requests, lost or misfiled documents, and communication failures that leave claimants uncertain about where their claim stands.

For a family that has already waited months for probate, receiving incorrect or contradictory information from NS&I can reset the process entirely.

What premium bonds are and what happens to them after death

Premium bonds are a savings product issued by NS&I and backed by the UK government. Rather than paying conventional interest, each £1 bond is entered into a monthly prize draw. Prizes range from £25 to £1 million and are tax-free. The bonds themselves are not at risk: the original capital is always returned.

When a premium bond holder dies, the bonds are not lost. They remain eligible for prizes for up to twelve months after the date of death. However, the bonds cannot be transferred or passed on to another person in the way that, say, a cash ISA or a savings account might be. Once the estate is settled, the bonds must be cashed in and the proceeds paid to the estate.

This means that, unlike some other assets, there is a time-limited window during which the deceased’s bonds are still in the draw. A family that takes more than twelve months to complete the claims process will lose any prize eligibility on those bonds. In the case described by The Guardian, where the process took over a year, this is a material consideration.

Full details of how NS&I handles deceased customers’ accounts are published at nsandi.com.

The wider context: bereavement and financial services

NS&I is not the only financial institution where bereaved families encounter delays. UK Finance, the banking industry body, and consumer organisations including Which? have documented ongoing difficulties with how the financial services sector handles what is known as the “bereavement journey.”

The Financial Conduct Authority (FCA) has guidance requiring firms to treat bereaved customers with appropriate sensitivity and to have clear, accessible processes. Where firms fall short, the Financial Ombudsman Service (FOS) provides a formal route for complaints.

Specific figures on the volume of NS&I bereavement-related complaints are pending verification. However, The Guardian’s report suggests the problem is sufficiently widespread to be causing visible public frustration in May 2026.

What you can do today if you are in this situation

If you are trying to claim premium bonds or other NS&I savings on behalf of a deceased relative, the following steps apply under current UK rules:

1. Check whether probate is required. If the total NS&I holding is £5,000 or below, a simpler small estates process may apply. Contact NS&I directly or visit nsandi.com to confirm the current threshold and required documentation.

2. Apply for probate promptly. The online probate application service for England and Wales is available at GOV.UK. In Scotland, apply for confirmation through the local Sheriff Court. In Northern Ireland, contact the Probate Office in Belfast.

3. Keep records of all correspondence with NS&I. Note dates, reference numbers, and the name of anyone you speak to. These will be essential if you need to escalate a complaint.

4. Raise a formal complaint with NS&I if you believe the process is unreasonably delayed or that errors have occurred. NS&I must acknowledge the complaint and attempt to resolve it within eight weeks.

5. Escalate to the Financial Ombudsman Service if the complaint is not resolved within eight weeks, or if you are dissatisfied with NS&I’s response. The FOS service is free to consumers. Visit financial-ombudsman.org.uk to submit a complaint.

6. Seek free advice from Citizens Advice (citizensadvice.org.uk), MoneyHelper (moneyhelper.org.uk), or Which? (which.co.uk) if you need support navigating the process.

How to report problems or seek help

If you have experienced significant delays or errors with NS&I and want to put your case on record, two routes are available beyond the FOS:

• Action Fraud (actionfraud.police.uk, 0300 123 2040) handles reports of fraud. If you believe any NS&I correspondence you have received is fraudulent rather than a genuine NS&I error, this is the correct reporting channel.
• Your MP can raise concerns with the Treasury on your behalf if you feel the issue is systemic. NS&I is a government-backed body and is ultimately accountable to Parliament.

For general consumer protection concerns about financial firms, the FCA’s consumer helpline at 0800 111 6768 can provide guidance on your rights.

For related reading, see our coverage of common savings scams targeting UK consumers and how to protect yourself when dealing with financial institutions during a bereavement.