More than £100 million of Premium Bond prizes remain unclaimed, including 11 second-tier £100,000 prizes, raising concerns about the effectiveness of the government-owned National Savings and Investments (NS&I) in locating winners. Critics argue that the existing systems, particularly for older paper-based accounts or gifted bonds, are overly complex and outdated, potentially leaving rightful owners without access to significant sums amid the current cost-of-living crisis.
Unclaimed Premium Bond Prizes: A Growing Concern
NS&I, the state-backed organisation that operates the UK’s popular Premium Bonds savings scheme, reported that approximately £103 million in prizes remains unclaimed as of March 2025. This figure represents just 0.28% of the total £37 billion awarded since the scheme’s inception in 1957. Still, it encapsulates a significant number of prizes including 11 unclaimed £100,000 winnings, the second-largest award in the scheme.
Premium Bonds operate as a lottery-style government savings product in which holders’ money is entered into monthly prize draws instead of receiving fixed interest. Prizes range from £25 to £1 million, with millions of bonds held nationwide. As of March 2025, nearly 23 million people owned Premium Bonds worth approximately £130 billion.
NS&I says it has paid more than 99% of prizes to registered winners and asserts that every million-pound jackpot winner has received their payout. However, the volume of unclaimed prizes has prompted calls for urgent improvements to the system used for finding winners who have lost contact or whose accounts are not digitally linked.
Challenges in Tracing Lost or Unregistered Bonds
The complexity of tracing Premium Bond winners is heightened by the nature of the accounts. Unlike digital bank accounts, many Premium Bond holders possess paper certificates, sometimes gifted in childhood, and often do not have registered contact details. Changes of address, lost paperwork, and unregistered holdings exacerbate tracking difficulties.
Patrice Lawrence, a wills and probate solicitor, described the problem as “shocking,” especially given the current economic pressures affecting many households. “It’s unacceptable that a government-owned bank is sitting on nearly £100 million in money that does not belong to it during a cost of living crisis,” Lawrence told the BBC. She has personally helped seven clients and acquaintances trace lost accounts.
NS&I retail director Andrew Westhead acknowledged the challenges, stating that bonds purchased before the digital era are “much harder to trace.” He highlighted that holders of unregistered bonds or those who have not updated their details after relocating may not receive prize notifications. Winners who register can be notified via text, email, or post, but many remain unreachable due to outdated information.
Since 2011, winners have been able to have prizes paid directly into bank accounts or reinvested in new bonds, replacing the earlier practice of cheque payments by post.
The Human Stories Behind Unclaimed Bonds
Melanie Clarke’s experience illustrates the personal difficulties faced by those trying to claim dormant prize money. After her father, Hugo Clarke, died in 2018, she found delicate Premium Bond papers among his belongings but did not initially understand their significance. “They’re quite delicate and flimsy… I thought, what part of these papers is important? How do I find out any information?” she said.
Hugo Clarke, who arrived in the UK from Trinidad as part of the Windrush generation, did not leave a will, complicating the tracing process. Ms Clarke is currently engaged in a prolonged effort with NS&I to recover the accounts. She believes many people of her generation hold Premium Bonds purchased on their behalf as children but lack the knowledge or documentation to claim winnings.
Calls for Reform and Improved Tracing Processes
Consumer advocate Sam Richardson, deputy editor at Which? Money, noted that NS&I is not part of the government’s “Tell Us Once” initiative or the private Death Notification Service, both designed to simplify notifications to organisations after a person’s death. These programmes aim to streamline estate administration but currently do not include NS&I, complicating matters for bereaved families.
“I understand NS&I requires more individual contact with executors than the automated Tell Us Once service allows,” NS&I said, “but we are committed to being as easy to use as possible during what can be very difficult events.”
BBC Morning Live’s money expert Iona Bain said NS&I’s tracing mechanisms must improve to avoid frustrating customers. “In theory, you shouldn’t be penalised for losing the original certificate, but the reality is that some people face a ‘computer says no’ attitude from the process,” she explained. “NS&I needs to make tracing unclaimed prizes less bureaucratic and more responsive.”
Patrice Lawrence has launched a petition urging reforms so that basic information such as names, dates of birth, and addresses at time of purchase would suffice for locating accounts. She highlighted several systemic problems, including:
- A general lack of awareness about Premium Bond paperwork found among relatives’ possessions after death.
- Children and young adults knowing little about bonds purchased on their behalf that require transfer process at age 16.
- Instances where NS&I cannot reveal ownership details to individuals who present certificates bearing account numbers but cannot prove their identity conclusively.
How to Trace and Claim Unclaimed Premium Bonds
NS&I offers a tracing service for those who have misplaced bond numbers or account details. This can be accessed online, via post, or over the phone. The bank also participates in the broader MyLostAccount service, which helps trace dormant savings and investments held with multiple financial providers.
Customers who possess original paper bond certificates can register their details through NS&I’s website or by calling the helpline at 08085 007 007. Third parties legally entitled to act on behalf of deceased or incapacitated owners such as executors or those with Power of Attorney may also request account traces.
Andrew Westhead emphasised NS&I’s ongoing commitment to publicising unclaimed prizes through its website and call centres, encouraging customers to use prize checkers and tracing services.
The Wider Implications
Premium Bonds are a hallmark of British government savings policy and have remained popular for more than six decades. Since their launch by then-Chancellor Harold Macmillan in 1957, over 772 million prizes have been awarded by ERNIE, the Electronic Random Number Indicator Equipment that runs the draws.
With premium bond holdings now at record levels of £130 billion, ensuring that rightful owners receive prizes promptly is critical for consumer confidence and social equity. Failure to locate winners not only results in unused government-held funds but can also exacerbate financial hardship for individuals unaware of their potential windfalls.
Financial experts suggest that modernising the tracing system, integrating with government notification services, and improving customer support would reduce the number of unclaimed prizes. Such reforms are especially pertinent given the role Premium Bonds play in accessible, tax-free savings for a broad demographic.
For more information on tracing your Premium Bonds account or claiming unclaimed prizes, visit the NS&I website or contact their helpline.
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