National Savings and Investments (NS&I) is expected to announce hundreds of millions of pounds worth of compensation after issues managing the money of thousands of customers.
The Government-backed bank has held talks with the Treasury over repaying about 37,000 savers whose funds have been affected by failures.
The Telegraph reported that NS&I could pay as much as £400 million to impacted customers.
The reported failings at the bank included bereaved families not being able to receive money they claim was rightfully theirs.
On Wednesday, the bank apologised to anyone suffering a bereavement who has not received the customer service “they should expect”.
Pensions minister Torsten Bell is expected to speak on the issue in the House of Commons later on Thursday.
NS&I offers a range of savings and investments to more than 24 million customers, including more than 22 million Premium Bonds holders.
