Premium Bond black hole as £100m in prizes unclaimed

More than £100m in Premium Bond prizes remain unclaimed, sparking growing concern that the Government-owned bank behind the savings scheme is not doing enough to track down rightful winners.

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Among the 2.5 million unclaimed prizes are 11 worth £100,000 - the second-largest sum available - and hundreds of others ranging from £25 to £50,000. Critics are now calling for a major overhaul of the tracing process amid fears that vital financial lifelines are being lost at a time when households are struggling.

Patrice Lawrence, a wills and probate solicitor who has helped seven people recover long-lost accounts, said: "It is shocking that a government-owned bank is sitting on over £100m in unclaimed prizes...[and] how many people are being deprived of some financial respite from the cost of living crisis as a result?"

National Savings and Investments (NS&I), which operates the tax-free draw, says it has paid out more than 99 per cent of prizewinners since the scheme began in 1957. Yet it concedes that Premium Bonds bought before the digital era - and held only on paper - can be far harder to trace.

"We recognise those purchased long before digitalisation, and primarily over the counter at Post Office branches are much harder to trace as there is limited recorded information," said NS&I retail director Andrew Westhead.