Automatic compensation: What you need to know

Our automatic compensation scheme means you can get money back from your broadband and landline provider when things go wrong, without having to ask for it.

When you can receive compensation

Companies signed up to the scheme will provide compensation in the situations set out below. Compensation amounts increase each year in line with inflation.

Delayed repair following loss of service

• If your service has stopped working and is not fully fixed after two full working days.
• Compensation: £10.34 for each calendar day the service is not repaired.

Missed appointments

• If an engineer does not turn up for a scheduled appointment, or it is cancelled with less than 24 hours’ notice.
• Compensation: £32.31 per missed appointment.

Delays with the start of a new service

• If your provider promises to start a new service on a particular date but fails to do so.
• Compensation: £6.46 for each calendar day of delay.

Unless an exclusion applies, you should get compensation even when the problem is caused by an event beyond your, or your provider’s, control. This includes extreme weather, strikes and third-party acts.

If your landline and broadband both lose service at the same time, you will only receive one compensation payment.

This scheme covers all residential fixed broadband and landline products. You can find more detail in the Code of Practice.

How you will receive compensation

Unless you agree otherwise, compensation will be a credit on your bill, and you should receive this no later than 30 calendar days after:

• the loss of service is resolved or the service is terminated;
• the date of the missed appointment;
• a delayed start of a new service is resolved or the service is cancelled.

The credit will appear on your account within the timeframes above but might show on your bill at a later date. Your provider can offer you alternative forms of compensation of the same or higher value, as long as they make you aware of how much you could receive in the form of a credit on your bill.

What you need to do to receive compensation

If your service doesn’t start on the agreed date, or if your engineer appointment is missed, your provider will pay compensation automatically – you don’t need to take any action.

If your broadband or landline service stops working, you simply have to report the fault to your provider. If the service is not fixed after two full working days, your provider will pay you automatically if the repair takes too long. You will receive an initial £10.34 if the service is not fixed two full working days after you report it, and then £10.34 for each full day it is still not fixed after that.

When might you not get compensation under the scheme?

The following exclusions apply:

• If the loss in service is caused by equipment or activity within your home;
• if you break the terms of your contract; or
• if you caused the service failure or if you prevent it from being resolved – for example, if you ask for a later engineer appointment than the one offered and delay repairs to the service.

Where your provider claims an exception applies, we expect them to tell you clearly their reasons and continue to act in your best interests. In addition, where signatories are not paying automatic compensation for legitimate reasons and you are without service, you should not be charged for a service you are not receiving.

Is there a limit to how much compensation you can get?

Providers can also limit the amount of compensation they pay out. After 30 days of an automatic compensation payment occurring, your provider can notify you that payments would stop after a further 30 days (this is called a ‘cease notification’).

After this, your provider needs to take reasonable steps to provide a suitable alternative service. If they are not able to give you a suitable alternative, you will still be entitled to automatic compensation under the scheme.

What if you don't receive the compensation you believe you should?

If you didn’t receive compensation you should have received under the scheme, raise it with your provider. Unresolved complaints can go through an Ofcom-approved alternative dispute resolution (ADR) service.