UK customers of major providers can now receive automatic compensation when things go wrong, without having to chase their ISP or file a formal claim.
Ofcom, the UK’s communications regulator, oversees a voluntary automatic compensation scheme that has been in place since 2019 and covers residential fixed broadband and landline services.
The latest payment amounts, updated for inflation on 1 April 2026, give consumers more money back when service failures occur.
Which providers are signed up?
Most major UK ISPs participate in the scheme, covering around 97% of landline and 91% of broadband customers. Participating businesses include:
- BT
- EE
- Sky (including NOW Broadband)
- TalkTalk (with some restrictions for non-Openreach customers)
- Virgin Media
- Vodafone
- Plusnet
- Hyperoptic
- Utility Warehouse
- Zen Internet
Smaller providers may not have joined, so check with your ISP if you’re unsure.
When do you get compensated automatically?
The scheme kicks in for three main types of service isssues:
- Delayed repairs after total loss of service: If your broadband or landline stops working completely and isn’t fixed after two full working days from when you report the fault, you qualify. You get an initial £10.34 once the two-day threshold passes. Then £10.34 for each additional full calendar day until the service is fully restored. If both your landline and broadband go down at the same time, you only receive one set of payments.
- Missed engineer appointments: If an engineer doesn’t show up for a scheduled appointment, or the provider cancels with less than 24 hours’ notice, you receive £32.31 per missed appointment.
- Delays starting a new service: If your provider promises to activate your new broadband or landline on a specific date but fails to do so by 11:59pm, you get £6.46 for each calendar day of delay, including the original missed start date, until the service goes live (or the contract is cancelled).
Compensation is paid as a credit on your bill, or an equivalent alternative if you agree. Providers must issue it within 30 calendar days after the issue is resolved.
How does it actually work?
It’s designed to be hassle-free for customers:
- For loss of service, you still need to report the fault to your provider as usual. Once reported, the provider’s systems should automatically detect the delay and trigger payments — no extra claiming required.
- For missed appointments and activation delays, the provider must proactively handle eligibility and payment.
- Payments increase every year on 1 April in line with the Consumer Price Index (CPI).
In 2024, the scheme paid out over £63 million to affected customers, showing it delivers meaningful redress when ISPs fall short.
Important exceptions and limitations
You won’t qualify for automatic compensation if:
- The issue was caused by something in your home (e.g., faulty router or wiring you’re responsible for).
- You breached your contract or did something that prevented the provider from fixing the problem (like requesting a delayed repair slot).
- The problem stems from events beyond the provider’s control, such as extreme weather, industrial action, or third-party damage (providers must explain this clearly).
Providers can also cap payments after prolonged issues and may offer alternative services instead. Planned outages notified in advance usually don’t qualify.
If compensation doesn’t appear on your bill as expected, contact your provider first. If you’re still unhappy, escalate to a free Ofcom-approved alternative dispute resolution (ADR) service, such as Ombudsman Services: Communications.
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