§ Mr. David Mitchellasked the Chancellor of the Exchequer (1) whether he can give an assurance either that the Premium Bond Office received the money from the sale of bonds in every case in which the name of the purchaser was 289W not recorded or that there was a reduction in the stock of bonds held by a selling agent, not matched by purchase applications received in the Bonds Stock Office;
(2) whether interest is paid on unclaimed winning premium bonds; at what percentage; and whether it is accumulating on the prizes still held for unidentified purchasers;
(3) if he will list those selling organisations which failed to record the purchasers' names and addresses of premium bonds which they had sold; and how many such cases apply to which organisations;
(4) if he will give a list of the localities in which premium bond prizes have not been claimed in respect of the 150 prize winners of unidentified registrations;
(5) what steps have been taken to trace premium bond winners who have changed address.
§ Mr. DellThe Department for National Savings receives the purchase money for all premium savings bonds registered at the Bonds and Stock Office, including those recorded as having been sold to a holder whose name and address remain to be identified. In the case of any other reduction in stock, purchase money is paid over if and when there is evidence that the reduction related to bonds sold. Out of a total of over 7,000 premium savings bond purchases by persons whose names and addresses remain to be identified, 34 were made through banks. The remainder were made through post offices, which handle 90 per cent. by number of the sales of bonds value £10 or under.
The 150 prizes won by bonds recorded as sold to, as yet, unidentified holders were purchased across the country. I will write to the hon. Gentleman giving him the details.
The Department for National Savings goes to considerable trouble and expense to trace premium savings bond winners who have changed addresses. A prize claim form or, for £25 and £50 prizes, a warrant is sent to each bond prize winner at his latest recorded address, and if a completed claim form is not received, or a warrant is not negotiated, a reminder is sent. If there is still no response, or if a claim form or warrant is returned undelivered, 290W a search is made for a more recent address through all the records of the Department for National Savings. If this also proves fruitless, the Post Office is then requested to undertake discreet inquiries in the area of the bond holder's last known address. If after a year the bond holder is still not traced, the Post Office is asked to repeat its inquiries, after which any prizes still unclaimed for 18 months or more are included in the list of unclaimed prizes published as quarterly supplements to the London, Edinburgh and Belfast Gazettes and displayed at the larger post offices. Additionally, the Department for National Savings issues a special monthly Press release of unclaimed prizes broken down into geographical areas based on the last recorded addresses of the prize winners. There is no time limit for claiming prizes.
Interest is not normally paid on unclaimed prizes where the bond holder has failed to notify the Department for National Savings of a change of address. The bond holder is asked to do this on his bond and again, if he makes a subsequent purchase, both on the application form and on the new bond. The regulations governing the premium savings bond scheme do not allow for the payment of interest in such cases. However, the Government have reviewed the situation and accept that, where a bond holder suffers possible loss because a prize payment is delayed through no fault of his own, an ex gratia payment should be made. This arrangement will include prizes won by bonds sold to holders whose names and addresses remain to be identified. The payment will be calculated at a rate of interest equal to that paid on a National Savings Bank investment account less tax deducted at source at the basic rate. The current gross rate of interest payable on this form of saving is 9 per cent.