Dax Harkins has been replaced by Sir Jim Harra, the former head of HMRC.

The controversy centres on failures in NS&I’s bereavement claims process, which left around 37,500 families unable to access the savings and premium bonds of deceased relatives. The total value of affected funds is estimated at up to £476 million. Some families reportedly spent years navigating bureaucratic obstacles — completing multiple forms, making numerous phone calls, and in some cases engaging lawyers at their own expense — in order to recover money they were rightfully owed.

Pensions Minister Torsten Bell informed the House of Commons that NS&I had alerted the Treasury to “operational failures” in tracing funds as far back as December. He confirmed that a review of more than 34 million customer accounts had identified the scale of the problem, and stressed that no money had been lost. “No funds have been misplaced and everybody will be entitled to every penny of their savings,” he said. Compensation would be paid “where appropriate,” and the onus to act would lie with NS&I rather than affected customers.

NS&I acknowledged that errors arose because its search process failed to identify all relevant products when handling bereavement claims. The organisation stated the issue had since been resolved and that robust measures were in place to prevent a recurrence. It apologised “unreservedly” for the distress caused.

Founded in 1861 as the Post Office Savings Bank, NS&I now serves more than 24 million customers, including over 22 million premium bond holders. Its appeal has long rested on the government guarantee underpinning all deposits — a trust the Minister acknowledged must now be rebuilt. NS&I has been asked to publish a full delivery plan in May, setting out how it will return funds and support those affected.