Committee publication · Estimate memoranda · 13 May 2026

NS&I 2026-27 Main Estimate Memorandum

From: Treasury Committee

Summary

NS&I's 2026-27 Main Estimate seeks £380.3 million in Resource DEL, £81.4 million in Capital DEL, and £17.0 million in Resource AME. The £33.9 million increase in Resource DEL from 2025-26 reflects continued investment in NS&I's Business Transformation Programme. The estimate includes a bereavement claims issue affecting up to 37,500 customers and £476 million in potential liabilities, currently under investigation.

Key findings

  • Resource DEL increases 8.9% to £380.3 million, primarily driven by Business Transformation Programme costs peaking in 2026-27 before declining to £201.2 million by 2028-29.
  • Capital DEL decreases 9.7% to £81.4 million, reflecting planned transition from build phase to delivery and implementation of the Transformation Programme.
  • NS&I identified a bereavement claims issue on 26 March 2026 affecting up to 37,500 deceased customers' estates worth £476 million; financial impact quantification and accounting treatment pending.
  • Efficiency targets include £1 reduction in consultancy spend, Learning & Development reductions, travel controls, and marketing research cuts, targeting at least 1% RDEL efficiency annually.
  • Service Delivery Measure target set at £15 billion net financing (+/- £4.0 billion); other ministerial targets to be published in 2025-26 Annual Report.

Tone

Procedural

Topics

public-financegovernment-spendingdigital-transformationcustomer-service

Key actors

National Savings and Investments (NS&I), HM Treasury, Chancellor of the Exchequer, Minister for Pensions, Sir Jim Harra, Government Property Agency, House of Commons Scrutiny Unit, Cabinet Office

Notable line

… up to 37,500 bereavement claims with a total value of up to £476 million where the estates of deceased customers were not always repaid money from all of their NS&I accounts following …

Key Quotes

NS&I had identified an issue affecting up to 37,500 bereavement claims with a total value of up to £476 million where the estates of deceased customers were not always repaid money from all of their NS&I accounts following a bereavement claim.
Minister for Pensions · Statement to House on 26 March 2026 regarding bereavement claims issue
The upward trend accelerated in 2024-25 and is expected to peak at £380.3million in the 2026-27 Main Estimate, driven by the transition to full implementation and delivery phases of the Transformation Programme.
NS&I · Explanation of Resource DEL spending trends
From 2027-28 onwards, planned Resource DEL, as set out in the SR25, is projected to decline to £201.2 million by 2028-29. This reflects the expected tapering of programme spend as the Transformation Programme moves beyond peak delivery into a more stable operational phase …
NS&I · Future spending projections post-2026-27
The programme has experienced significant delays in delivery and an increase in costs. NS&I is currently developing several costed options for the programme to identify a recommendation for submission to Ministers.
NS&I · Status of Business Transformation Programme major project
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Source · parliament.uk record ↗