NS&I boss replaced over missing savings scandal

The boss of the UK's government-backed National Savings & Investments (NS&I) has stepped down over a scandal where the bank misplaced around 37,000 customers' funds, leading to some bereaved families facing long delays accessing relatives' Premium Bonds.

The scandal, first revealed in The Telegraph, saw around £476m of funds affected and led to NS&I chief executive Dax Harkins resigning. He has been replaced by Jim Harra, former boss of HMRC. Pensions Minister Torsten Bell said those affected may receive compensation and said the Treasury had been notified of the issue in December.

NS&I operates a number of products including Premium Bonds, where savers can buy bonds worth £1 each, which are then entered into a prize draw with the chance of winning prizes from £25 up to £1m tax-free. However, millions of bonds are thought to be 'lost' where people have forgotten they have them or the bonds' owner has died.

Dan Coatsworth, head of markets at AJ Bell, said: “NS&I effectively competes with the banks as a savings brand and is extremely popular with individuals up and down the country. News that thousands of bereaved families faced delays accessing their relatives’ Premium Bonds will be bruising for its reputation.

“Trust is incredibly important in financial services and savers might not look so fondly at NS&I following operational failures in the business.”