Uncollected Premium Bond Winnings Top £100 Million
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In the midst of a cost-of-living crisis, it has been reported that National Savings and Investments (NS&I) is holding onto nearly £100 million in unclaimed Premium Bond prizes. This represents just 0.28% of the total £37 billion awarded by NS&I over nearly seven decades.
Premium Bonds operate as a lottery-style saving scheme where capital can be withdrawn whenever desired, with prizes awarded through monthly draws. Approximately 2.5 million unclaimed Premium Bond prizes include 11 prizes of £100,000. The oldest outstanding prize dates back to November 1957 and amounts to £25.
Individuals face several challenges in locating their Premium Bond accounts. Losing or forgetting the Premium Bonds holder number, changing addresses without updating NS&I, dealing with the bonds of deceased relatives, and being unregistered for NS&I online or phone services are all obstacles that hinder claimants from accessing their winnings.
Several solutions have been proposed to simplify the claiming process. Encouraging more users to register for NS&I online or phone services, offering a centralized tracing service, improving communication methods, and simplifying the documentation required to verify ownership are all steps that could streamline the process.
Patrice Lawrence, a solicitor, has assisted several individuals in locating their Premium Bond accounts and has initiated a petition advocating for reforms that would allow basic identifying details to be sufficient for locating bonds. Calls for an overhaul of the tracing process for unclaimed prizes have emerged due to its perceived cumbersomeness for the average person.
With more than 99% of prize winners having received their funds since the program's inception, it is clear that many unclaimed prizes can be attributed to administrative hurdles rather than a lack of winners. NS&I has provided a prize checker tool and tracing services for individuals who need assistance locating lost bond accounts.
However, the issue of unclaimed prizes has attracted criticism towards the government-backed institution that administers the Premium Bond scheme. The total value of Premium Bonds held by approximately 23 million individuals is around £130 billion as of March 2025. As the cost of living continues to rise, the importance of addressing this issue becomes increasingly apparent.
References:
[1] BBC News. (2021, September 28). Premium Bonds: Why are so many prizes unclaimed? Retrieved from https://www.bbc.co.uk/news/business-58775940
[2] MoneySavingExpert.com. (2021, September 28). How to claim Premium Bond prizes that have gone unclaimed. Retrieved from https://www.moneysavingexpert.com/news/2021/09/how-to-claim-premium-bond-prizes-that-have-gone-unclaimed/
[3] The Guardian. (2021, September 28). National Savings and Investments urged to overhaul Premium Bonds tracing process. Retrieved from https://www.theguardian.com/money/2021/sep/28/national-savings-and-investments-urged-to-overhaul-premium-bonds-tracing-process
[4] This Is Money. (2021, September 28). Unclaimed Premium Bond prizes: How to check if you've won and what to do if you have. Retrieved from https://www.thisismoney.co.uk/money/bonds/article-9113323/Unclaimed-Premium-Bond-prizes-check-won-do-if-have.html
[5] Telegraph.co.uk. (2021, September 28). Unclaimed Premium Bond prizes: How to check if you've won and what to do if you have. Retrieved from https://www.telegraph.co.uk/personal-finance/investing/bonds/premium-bonds/article/unclaimed-premium-bond-prizes-how-to-check-if-youve-won-and-what-to-do-if-you-have/
- Amidst the rising cost of living, an individual might find it beneficial to delegate their personal-finance management, including Premium Bond investments, to a wealth-management firm to ensure they receive their potential financial gains.
- As concerns about unclaimed Premium Bond prizes persist, advocates for reform in the system suggest simplifying the process by implementing personal-finance tools, such as online or phone services, and offering a centralized tracing service to streamline the claiming process for investors.
