In a startling revelation, over £100 million worth of Premium Bond prizes remain unclaimed, raising concerns and criticisms directed towards the government-owned entity, National Savings and Investments (NS&I). This financial institution, which has operated the Premium Bonds scheme since its inception in 1957, is now facing scrutiny for what many describe as inadequate efforts to locate the rightful owners of these winnings.
Among the staggering 2.5 million unclaimed prizes, there are 11 notable winners who are each entitled to £100,000, one of the highest rewards available through the scheme. Critics of NS&I argue that the existing processes to trace accounts are overly complex and often prove challenging, particularly for individuals who may have received Premium Bonds as gifts or maintained only paper records.
NS&I maintains that it has successfully paid more than 99% of winners since the launch of tax-free draws. However, experts stress that the current methods of account tracing need significant reform. Wills and probate solicitor Patrice Lawrence pointed out that accessing nearly £100 million in unclaimed prizes during a period of economic hardship, such as the ongoing cost-of-living crisis, is nothing short of unacceptable.
Premium Bonds function as a unique lottery-style bank account backed by the government. Participants can deposit funds and withdraw them at their convenience, with the potential to earn prizes through monthly draws. While many bondholders may receive nothing, others could win amounts ranging from £25 to a massive £1 million. The notion that money is unclaimed raises numerous questions about the overall awareness and communication surrounding these financial products.
Notably, NS&I reported that every individual who has won a jackpot has received their owed funds, yet there remains a significant gap between prize notifications and actual claims. Many issues lead people to unknowingly forfeit potential winnings. For instance, when individuals relocate without updating their contact information, NS&I is unable to reach them. Additionally, those who may have been gifted bonds in their youth might lack sufficient knowledge about the steps needed to reclaim their assets.
Andrew Westhead, retail director at NS&I, acknowledged the difficulty of tracing older bonds purchased before digital records were maintained. The first draw of the scheme took place over six decades ago, and since then, the Lottery’s Electronic Random Number Indicator Equipment (ERNIE) has distributed more than 772 million prizes totaling £37 billion. To further compound the issue, the oldest currently unclaimed prize dates back to 1957.
Efforts have been made to ensure winners receive notifications of their prizes via various means, including text messages and emails. Still, countless recipients remain uninformed about their winnings due to lost documentation. NS&I has highlighted that it has conducted over 781,000 traces for customers, with nearly 465,000 resulting in successful claims, yet many still struggle to provide original paperwork.
Amid calls for improved accessibility, Melanie Clarke’s story encapsulates the challenges many face. After sorting through her late father’s possessions, she discovered Premium Bond documents but found it difficult to trace the accounts. This experience speaks to a larger issue where many, particularly those from a similar generation, may find themselves unaware of the steps necessary to reclaim bonds that could be rightfully theirs.
Consumer advocate Sam Richardson criticized NS&I for not participating in government services aimed at easing communication and assisting bereaved families with their financial affairs. Addressing the bureaucracy involved, expert Iona Bain calls for a significant overhaul of NS&I’s tracing processes to make them less rigid and more accommodating for individuals attempting to reclaim funds.
In light of these sentiments, a petition spearheaded by Lawrence aims to simplify the process for locating accounts, suggesting that basic identifying information should suffice. Currently, hurdles that include lack of awareness and complex tracing protocols serve as a significant impediment for potential claimants.
For anyone looking to find their Premium Bonds account, NS&I offers a tracing service that can be contacted online, by mail, or over the phone. Additionally, services like MyLostAccount assist individuals in locating unclaimed assets across multiple financial institutions, potentially benefiting those who have encountered barriers in securing their rightful winnings.
As of March 2025, Premium Bonds have drawn in nearly 23 million participants with a combined value of £130 billion. The urgency and importance of these unclaimed prizes highlight a critical need for ongoing dialogue and reform within NS&I to ensure that all winners access their rightful funds.
