Broadband Automatic Compensation: Your Rights
How the Ofcom Automatic Compensation scheme works - when you are entitled to money back from your broadband provider and how much you should receive for service failures.
Under Ofcom's Automatic Compensation scheme, UK broadband providers must pay you �6.10 per day for delayed repairs beyond two working days, �6.10 per day for delayed activations, and �30 for missed engineer appointments. Payments are automatic - you do not need to claim. The scheme covers around 95 percent of UK broadband customers.
What Triggers Automatic Compensation
Three situations trigger automatic compensation. First, if your broadband service develops a fault and is not fully repaired within two working days of you reporting it, you receive �6.10 for each calendar day the fault persists. Second, if your new broadband service is not activated on the date promised by your provider, you receive �6.10 per day of delay. Third, if an Openreach or provider engineer misses a scheduled appointment without giving you 24 hours' notice, you receive a one-off �30 payment. These amounts are set by Ofcom and reviewed periodically. BT, Sky, Virgin Media, EE, TalkTalk, Plusnet, Zen Internet and Hyperoptic have all signed up to the scheme. Compensation is calculated automatically by provider systems and applied as a bill credit within 30 days of the qualifying event ending.
Which Providers Are Signed Up
The Automatic Compensation scheme is voluntary but covers around 95 percent of UK broadband customers through participating providers. Major signatories include BT, EE, Sky, TalkTalk, Plusnet, Virgin Media, Vodafone, Zen Internet, Hyperoptic and NOW Broadband. Among alt-net providers, participation varies. Community Fibre and Cuckoo have also signed up. Smaller providers not signed up to the scheme may still offer compensation under their own policies, but it is not guaranteed or standardised. If your provider is not a participant, you can still claim compensation through their standard complaints process and ultimately through the ombudsman. Check your provider's website for their participation status. Ofcom publishes a list of participating providers which is updated annually.
How Compensation Is Paid
Compensation is applied as a credit on your next bill or bills. If the credit exceeds your bill amount, the balance carries forward. If you have left the provider, they must send payment by cheque or bank transfer. You do not need to call, email or submit a claim form - the process is entirely automatic. Your provider's systems track fault reports, activation dates and engineer appointments, triggering payment when qualifying criteria are met. If you believe you are owed compensation but have not received it, contact your provider's complaints team quoting the Automatic Compensation scheme. Keep your own records of fault reports, including dates and reference numbers. For missed engineer appointments, note the date, time window and any communication received. These records help resolve disputes if your provider's tracking fails.
Maximising Your Compensation Rights
To ensure you receive everything you are owed, report faults to your provider promptly and get a reference number. The compensation clock starts from the day after you report the fault, not from when the fault actually began. Test your broadband speed regularly and keep screenshots - if speeds drop below your minimum guarantee, this may constitute a fault eligible for compensation. For new installations, confirm the activation date in writing with your provider before the appointment. If a Gigaclear, BRSK or Toob engineer is sent rather than Openreach, the same compensation rules apply if those providers are signed up. If your provider repeatedly fails to meet service standards, consider switching to a provider with better reliability. Ofcom data shows that Zen Internet and Hyperoptic consistently have the fewest complaints per 100,000 customers, suggesting fewer occasions where compensation would be needed.
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Frequently Asked Questions
Do I have to claim automatic compensation?
No, compensation is applied automatically by your provider's systems. You should receive a bill credit within 30 days of the qualifying event. If you do not see the credit, contact your provider and reference the Automatic Compensation scheme with your fault reference number.
How much compensation will I receive?
You receive �6.10 per day for delayed repairs or activations, and �30 for a missed engineer appointment. These amounts are set by Ofcom. For a fault lasting 10 days beyond the initial two working days, you would receive �61 in total.
What if my provider is not signed up?
If your provider has not joined the Automatic Compensation scheme, you can still claim compensation through their complaints process. If unresolved after eight weeks, escalate to the ombudsman. The ombudsman can award compensation based on the impact of the service failure.
Does compensation apply to planned maintenance?
No. Planned maintenance and network upgrades that are communicated in advance do not trigger automatic compensation. Your provider must give reasonable notice of planned work. Only unplanned faults and failures qualify for the scheme.
Related Guides
Ofcom Broadband Rules � Broadband Complaints and Your Rights � Broadband Contracts Explained � Minimum Speed Guarantee
Methodology & Sources
Information in this guide is sourced from Ofcom market reports, Openreach coverage data, ISPreview.co.uk, provider websites and independent broadband research from Point Topic and Thinkbroadband. Prices and availability are checked monthly. Speed data reflects advertised average speeds from provider Key Facts documents.
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