Lloyds IT glitch affected nearly half a million customers

Lloyds Banking Group has told the Treasury Committee that an IT glitch affected nearly half a million customers, with £201,000 in goodwill payments made to 5,250 people.

Lloyds Banking Group has sent the Treasury Committee a second update on an IT glitch that affected nearly half a million customers, the committee said on 28 April 20261. The incident itself occurred in the previous month, and follows an initial assessment of it that Lloyds sent to MPs1.

The second update says a further £62,000 of goodwill payments have been issued to 1,625 customers, bringing the total to £201,000 paid out between 5,250 people1. For the first time, Lloyds notes that 80,805 other individuals may have had their transactions shared, because while they did not log in, they are joint account holders with people who did1. The committee also reports minor downward revisions of the total number of affected customers who logged on and the number of people who clicked through to see other people's transactions1.

"A further £62,000 of goodwill payments have been issued to 1,625 customers, bringing the total to £201,000 paid out between 5,250 people."
Treasury Committee, 28 April 20261

The figures reported so far are set out below.

ItemFigure
Customers affected by the glitchNearly half a million1
Goodwill payments issued in the second update£62,000 to 1,625 customers1
Total goodwill paid out£201,000 between 5,250 people1
Other individuals whose transactions may have been shared80,8051

The committee has not published a breakdown of the payments by customer, and no date has been reported for when the goodwill payments were made or when the affected customers were told. The sources do not state what caused the glitch, which Lloyds systems were involved, or whether any regulatory investigation is under way; none of this has been reported.

Why it matters for households

The customers involved hold accounts with Lloyds Bank, one of the UK's largest current account providers, so the incident touches a large number of ordinary banking customers rather than a niche group. Two distinct groups are affected. The first are customers who logged on during the glitch and, in some cases, clicked through to see other people's transactions. The second are the 80,805 joint account holders who did not log in themselves but whose transactions may have been shared because someone else on the same account did1.

For those in the second group, the practical point is that exposure to the incident did not depend on their own actions. The £201,000 paid out so far has been shared between 5,250 people, though the committee has not said how the individual amounts were calculated or whether they vary. Anyone checking their own position will find the relevant account terms and contact routes through the banks and building societies section, and provider-specific details under brands.

What happens next

Lloyds has now sent the Treasury Committee two updates, the second on 28 April 20261. The committee has not said whether it will seek a further update or call witnesses, and no further dates have been reported.

Sources1 cited
  1. Lloyds give further update on IT glitch - Committees - UK Parliament committees.parliament.uk