More than £100 million worth of Premium Bonds prizes remain unclaimed in the UK, prompting criticism of National Savings and Investments (NS&I), the government-backed institution that manages the scheme. With over 2.5 million unclaimed prizes—some dating as far back as the 1950s—pressure is mounting for reforms to modernize the account tracing system.
Premium Bonds: A Trusted Yet Forgotten Savings Scheme
Premium bonds, introduced in 1957, have long been a favorite among British savers. The unique government-backed system offers tax-free winnings instead of interest, with monthly draws awarding prizes ranging from £25 to a £1 million jackpot. Despite nearly 23 million people currently holding premium bond accounts valued at a staggering £130 billion, a significant number of winners have not come forward to claim their prizes.
According to NS&I, every £1 invested has an equal chance of winning, with monthly prize draws powered by ERNIE (Electronic Random Number Indicator Equipment). However, while jackpot winners are all accounted for, many smaller prizes—some as high as £100,000—remain unpaid.
Why So Many Premium Bond Prizes Go Unclaimed
Critics argue that the process to trace premium bond accounts is outdated and unnecessarily complex, especially for those with only paper documentation or people gifted bonds as children. Wills and probate solicitor Patrice Lawrence revealed that she’s helped multiple families uncover forgotten bonds, calling it “shocking” that such a large amount of money remains with the government during a cost-of-living crisis.
The oldest unclaimed premium bond prize dates back to November 1957 in South Yorkshire—a £25 reward that has yet to reach its rightful owner.
Key reasons for unclaimed prizes include:
- Holders not updating contact information after relocating
- Gifted bonds never registered in the recipient’s name
- Lost or damaged paper certificates
- Deceased estates with unrecognized bonds
NS&I Faces Backlash and Public Pressure
NS&I maintains that over 99% of premium bond winners have received their payments and that tools like its prize checker app and tracing services are available to assist. However, consumer advocacy groups argue that the current system is insufficiently accessible, especially for older savers and bereaved families.
Sam Richardson from Which? Money pointed out that NS&I is not part of the government’s Tell Us Once or Death Notification Service, making it harder for next of kin to resolve outstanding accounts. Meanwhile, money expert Iona Bain called on NS&I to simplify their procedures and stop relying on rigid documentation protocols.
A Call for Reform in the Premium Bonds Ecosystem
With more than 772 million prizes distributed since inception—amounting to £37 billion—reforming the premium bonds system is no small task. Yet campaigners believe a modernized tracing process, using names, dates of birth, and past addresses, could unlock millions for rightful winners.
NS&I reports over 781,000 account trace requests since March 2025, with about 60% resulting in a successful match. Still, critics say this doesn’t go far enough.
“The process needs to be more human-centered,” said Miss Lawrence, who is petitioning for legal reforms that would simplify how premium bond holdings can be verified and transferred.
What You Can Do
If you or a relative ever owned premium bonds, now is the time to check. Use NS&I’s official tracing service or the MyLostAccount platform, which also supports searches across other financial providers. If you’re an executor managing an estate, NS&I also provides routes to legally trace bonds on behalf of the deceased.
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