Automatic Compensation Scheme for Broadband
Get automatically compensated when your broadband provider fails to meet service standards. Learn your rights, how much you can claim, and which providers must pay you back.
Updated: December 2025
Contents
What is the Automatic Compensation Scheme?
The Automatic Compensation Scheme is an Ofcom-mandated initiative introduced in April 2019 that requires major UK broadband and landline providers to pay compensation automatically when they fail to meet service standards.
Unlike traditional complaint-based compensation where you had to fight for refunds, this scheme requires providers to pay you back automatically without you having to ask. The compensation is applied directly to your next bill as a credit.
Major providers including BT, EE, Sky, Virgin Media, TalkTalk, Plusnet, Vodafone, and Zen Internet are required to participate.
What Triggers Automatic Compensation?
You're entitled to automatic compensation in these situations:
- Delayed Repairs: £9.56 per day after 2 working days if service completely lost
- Delayed Installations: £5.65 per day if installation delayed beyond agreed date
- Missed Engineer Appointments: £28.91 for each missed appointment without 24hr notice
- Delayed Start of Service: £5.65 per day from agreed start date
Important Notes:
Complete Loss of Service: Compensation only applies if you've completely lost service (no broadband at all), not for slow speeds or intermittent issues.
Working Days: Calculations use working days (Monday-Saturday, excluding bank holidays).
How Much Compensation Do You Get?
Compensation amounts are set by Ofcom and reviewed annually based on inflation.
Delayed Repair
£9.56
Per day after 2 working days
Delayed Install
£5.65
Per day after agreed date
Missed Appointment
£28.91
Per missed appointment
Real-World Compensation Examples
Complete Outage for 5 Days
2 days grace + 3 days × £9.56
You Receive
£28.68
Engineer Misses Appointment
Automatic payment
You Receive
£28.91
Installation Delayed 3 Days
3 days × £5.65
You Receive
£16.95
10-Day Outage + Missed Appointment
8 days × £9.56 + £28.91
You Receive
£105.39
Maximum Compensation:
There's no legal cap. A 20-day outage = 18 days × £9.56 = £172.08 compensation.
Which Providers Are Covered?
Ofcom requires providers with 100,000+ customers to participate. Here's the current coverage:
BT / EE
Full coverage for all broadband and phone services
Sky
Full coverage for broadband, landline, and TV services
TalkTalk
Full coverage across all services
Plusnet
Full coverage (part of BT Group)
Virgin Media
Full coverage for cable and full fibre services
Zen Internet
Full coverage for business and residential
Vodafone
Full coverage for broadband services
Hyperoptic
Not currently covered - check voluntary compensation
Community Fibre
Not currently covered - check provider policy
How to Claim Your Compensation
The beauty of the automatic compensation scheme is that you don't need to actively claim—it should just happen.
- It's Automatic: Compensation should be applied to your next bill within 30 days
- Check Your Bill: Look for 'service credit' or 'compensation credit'
- Keep Records: Note down outage dates, appointments, and communications
- Contact Provider if Missing: Call with dates and details if not received
- Escalate if Necessary: File complaint, then contact ombudsman if refused
Providers with Best Compensation Practices
BT / EE
Automatically applies compensation, good at proactive communication. Stay Fast Guarantee offers additional protections.
Sky
Reliable compensation application, transparent about rights. Sky Guarantee adds extra service promises.
Virgin Media
Generally complies well, though some customers report delays in receiving compensation credits.
Plusnet
Part of BT Group, consistent application of scheme. Generally proactive about compensation.
Frequently Asked Questions
Do I get compensation for slow speeds?
No, the automatic compensation scheme only covers complete loss of service, missed appointments, and installation/repair delays. However, some providers like BT have separate 'Stay Fast Guarantee' schemes for speed issues.
What if the fault is in my home wiring?
If the fault is due to your equipment or internal wiring, you won't receive compensation and may be charged for the callout. However, if they initially failed to diagnose this correctly, you may still be entitled to compensation for the delayed resolution.
Can I get compensation if I'm cancelling?
Yes, if you experienced compensable events before cancellation, you're still entitled to compensation. It should be applied to your final bill or refunded if in credit.
What about business broadband?
Business broadband has separate compensation schemes with different rates. Some business services offer enhanced rates (£50-100+ per day). Check your business contract for specific SLAs.
How long does compensation take to appear?
Compensation should appear on your next bill within 30 days of service restoration. If not, contact your provider with specific dates and details of the outage.
Choosing a Provider with Automatic Compensation
All major providers (BT, EE, Sky, Virgin Media, TalkTalk, Plusnet, Vodafone) are covered by the scheme, so you're protected regardless of which mainstream provider you choose.
Look for providers with good reliability records rather than just compensation policies— the best compensation is the kind you never need to claim.
If choosing an alternative network not covered by the scheme, check their voluntary compensation policies before signing up.