Mark Garnier

I thank the Minister for early sight of his statement. This scandal affects tens of thousands of people, and it could end up costing taxpayers many millions of pounds. NS&I is supposed to be as safe a place as anywhere for people to put their savings—a place where savers can trust that their money will be looked after. As we have heard, 24 million people do so. It is also a savings scheme that the Government can use as a benefit to taxpayers, borrowing to provide funds for the running of the country. It needs to be demonstrably secure. In reality, bereaved families have been short-changed, with NS&I losing track of investments, delaying transfers and withholding premium bond payments. Customers have faced a complete breakdown in communication at the most difficult time, adding stress and worry. In the breaking newspaper reporting today, we have heard how people have had to chase up their own cases, only to be told that they would have to wait a further six to nine months for a resolution. Some families have also had to call in lawyers to obtain money that is rightfully theirs, and there are examples of bereaved family members receiving letters incorrectly addressed to their dead relatives. NS&I has in the past tried to blame some of these failures on covid and the outsourcing of staff, but whatever its excuse, this is unacceptable and a complete failure of management. NS&I is letting down its customers, and complaints have more than doubled in just over three years. At the same time, the digital transformation of NS&I that was meant to cost £1.3 billion has now ballooned to £3 billion. Is it any wonder that the Public Accounts Committee was damning about the digitalisation plan, calling it a “full-spectrum disaster” and concluding that NS&I is “over-confident” and “has no workable plan, and no idea of eventual cost.” If the Public Accounts Committee could see it, why have this Government been sitting on their hands? Poor performance and a botched digital transformation mean that NS&I is short-changing savers at a time when raising money for the Government has never been needed more. NS&I is an arm’s length body overseen by the Treasury. Specifically, it is an Executive agency of the Chancellor, so it is concerning that the Minister has today admitted that NS&I notified the Treasury of these operational failings on 18 December last year. It has apparently taken a breaking news story in The Daily Telegraph for the Government to make a statement today. Can the Minister please explain why it has taken him over three months to come forward with this statement? He also says that the previous Government failed to act. That implies that there was something to act on. Can he set out what actions he has taken between coming to power on 4 July 2024 and 18 December 2025? I have some further questions for the Minister. What provision has been made for compensation and who will pay for it? Where bonuses have been paid to senior staff over the period of poor performance, will they be recovered? On that note, we have seen reports that the chief executive will be resigning as a result of this issue and the botched digital transformation process. Can the Minister confirm whether he has resigned, or has he been sacked? Can he confirm whether the chief executive received bonuses over this period of poor performance? Finally, what confidence do the Minister and the Government have that this is the true depth of the problem affecting bereaved families? What work is he doing to identify whether this might be the tip of an iceberg? I am not trying to imply that it is the tip of an iceberg, but I ask the question to ensure that this is the limit of the problem. People have been let down. While NS&I has apologised for the mistakes, it will be of little comfort to those thousands of people who have lost out. The Government need to act swiftly and the families need to be compensated. The Opposition will work collaboratively with the Government to ensure a swift resolution.