NS&I scandal continues as Rachel Reeves alerted to 'serious' savings failures a year ago

Patrick O'Donnell
Sat, 04 Apr 2026 13:24:22 +0000

Chancellor Rachel Reeves is thought to have been alerted to "serious" issues at National Savings and Investments (NS&I) a year ago, a new report has claimed.

Ms Reeves was told of record-keeping failings and errors around contacting deceased savers' Premium Bonds accounts last March, but did not appear to act when these concerns were raised.

The Chancellor was sent a letter by Sir Iain Duncan Smith, who detailed these errors and how they could impact NS&I's service, The Telegraph reports.

This revelation comes after it emerged that 37,500 households were unable to access their deceased loved ones' savings with the financial institution.

Some £476million in savings were unable to be accessed with Dax Harkins resigning from his position as NS&I chief executive.

Officials from NS&I assert they were only made aware of the systemic failures in June of last year, despite the issue dating back to 2008.

Sir Mel Stride, the shadow chancellor, noted that the scandal has raised "serious questions" about the Government-backed bank.

Reform UK's Treasury spokesperson Robert Jenrick accused the Chancellor of "throwing Dax Harkins under the bus".

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Following the scandal, solicitor Patrice Lawrence shared that she had reached out to MPs after becoming suspicious of potential systemic failures at NS&I over the years.

Ms Lawrence's clients have sought her services to help track down savings accounts belonging to relatives who have passed away.

According to the lawyer, she was initially told by NS&I that her clients' family members did not hold accounts with the financial institution, but her own investigation found old bond numbers suggesting otherwise.

She shared: "I realised, you’re denying people have accounts and [NS&I is] sitting on millions at the same time. And I thought, something just isn’t right here."

The letter seen by The Telegraph confirms that Ms Lawrence had written directly to NS&I and received a reply on two separate occasions.

NS&I must publish a report, led by the bank's emergency chief executive Sir Jim Harra, outlining exactly how many customers have been affected by the scandal.

This report will have to detail how their savings will be returned with interest and what additional compensation they may be eligible to receive.

A Treasury spokesperson told GB News: "These claims are categorically untrue. As the Minister for Pensions set out, HM Treasury was notified of NS&I’s failings on December 18 2025, and we have since acted swiftly."

"The complaint referenced relates to the information needed to trace historic Premium Bonds, as opposed to the operational failure to comprehensively trace accounts for some customers who passed away, which is a matter for NS&I is resolving."