Ofcom Automatic Compensation: what you need to know

Last reviewed: 28 September 2026

If your broadband or landline goes faulty, a missed engineer appointment, delayed repair or late start to a new service could mean you are entitled to compensation automatically. You do not usually need to make a separate claim.

The scheme is designed to give residential broadband and landline customers compensation when certain problems occur. However, it only applies to specific situations and participating providers, so not every broadband problem will qualify.

This guide explains what the scheme covers, how much compensation you could receive, which providers take part and what to do if you think you are owed money.

What does the scheme cover?

The automatic compensation scheme covers three main situations for eligible residential broadband and landline customers:

Delayed repair following loss of service: 

If your broadband or landline stops working completely, you need to report the fault to your provider. If the service has still not been fully restored after two full working days, automatic compensation can start to apply.

The scheme is intended for a loss of service rather than every type of broadband problem. For example, slower-than-usual broadband or poor WiFi coverage does not automatically qualify for compensation under this part of the scheme.

Missed appointments: 

You can receive compensation if an engineer does not turn up for a scheduled appointment or if your provider cancels the appointment with less than 24 hours' notice. You do not normally need to make a separate claim. If the appointment qualifies under the scheme, your provider should identify the missed appointment and pay the compensation automatically.

Delayed start of a new service: 

If you sign up for a new broadband or landline service and your provider agrees to start it on a particular date, you may be entitled to compensation if the service does not start when promised. The compensation continues for each qualifying day that the start of your service is delayed.

The scheme is limited to these situations. It does not generally cover slow speeds, unreliable service or other problems with service quality unless they fall within one of the specific circumstances covered by the scheme.

How much compensation can you get?

The current compensation rates are:

Source: Ofcom. Rates last checked: 28 September 2026

The rates are reviewed and increased periodically, so check Ofcom's current figures if you are reading this after the rates have changed.

If your broadband and landline both stop working as part of the same loss-of-service problem, you receive one compensation payment rather than separate payments for each service. 

Compensation will normally be applied as a credit to your bill. You should receive it within 30 calendar days of the relevant event being resolved or, in some circumstances, your service being terminated. This includes the resolution of a loss of service, a missed appointment or a delayed start to a new service.

Your provider can offer compensation in another form if you agree to it, provided it is worth at least as much as the bill credit you would otherwise receive.

Which providers take part?

The scheme is voluntary, although most major providers currently participate. Ofcom's current list includes BT, EE, Hyperoptic, Plusnet, Sky (including NOW Broadband), TalkTalk, Utility Warehouse, Virgin Media, Vodafone and Zen Internet. There can be restrictions within a provider's participation. For example, Ofcom notes that restrictions apply to some TalkTalk customers who are not on the Openreach network. 

The scheme covers residential fixed broadband and landline products from participating providers. Provider participation can change, so if you are unsure whether your particular service is covered, check with your provider or Ofcom's latest information.

If your provider does not participate, the automatic compensation scheme itself will not apply. You may still have rights under your contract or other consumer protections.

Do you need to claim compensation?

For most covered situations, compensation should be paid automatically.

There is one important distinction:

• Missed appointments and delayed service starts: compensation should be paid automatically.
• Loss of service: you need to report the fault to your provider. If it is not fixed within the required two working days, compensation should then be applied automatically for each qualifying day that the problem continues.

This means it is important to report a fault as soon as you become aware of it. The compensation period generally starts from when you report the problem, rather than when the service first stopped working. 

If you think you are owed compensation but have not received it, contact your provider first and ask them to check the payment. If you cannot resolve the issue directly, you can escalate your complaint through an Ofcom-approved alternative dispute resolution (ADR) service.

When might you not receive compensation?

There are some circumstances where automatic compensation does not apply.

For example, you may not be entitled to compensation if:

• The loss of service was caused by equipment or activity within your home.
• You have breached the terms of your contract.
• You caused the service failure.
• You prevented your provider from resolving the problem, such as by requesting a later engineer appointment when an earlier appointment was available.

If your provider says that one of these exclusions applies, Ofcom expects it to explain the reason clearly and continue to act in your best interests. 

Importantly, a problem being outside your provider's control does not automatically mean you lose your right to compensation. Ofcom says qualifying compensation should generally still be paid for events such as extreme weather, strikes and third-party acts, unless one of the specific exclusions applies. 

If your provider legitimately does not pay automatic compensation while you are without service, Ofcom also says you should not be charged for a service you are not receiving.

Is there a limit on compensation?

There are rules around compensation for very long-running loss-of-service problems. After automatic compensation has been paid for 30 days, your provider can send you a notification saying that payments will stop after a further 30 days. This is known as a cease notification.

The provider must then take reasonable steps to provide you with a suitable alternative service. If it cannot provide a suitable alternative, you can remain entitled to automatic compensation under the scheme. 

This means compensation does not simply stop after 30 days. The cease-notification process gives the provider an additional period to resolve the situation or provide an alternative service.

What should you do when your broadband stops working?

If your broadband stops working, there are a few simple steps that can help make sure you do not miss out on compensation:

1. Check whether the problem is affecting your whole connection. Try restarting your router and checking whether other devices are also offline.
2. Report the fault to your provider as soon as possible. The date and time you report the problem can be important when calculating compensation.
3. Keep your fault reference number. Your provider should give you a reference or confirmation of the reported problem.
4. Keep track of any engineer appointments. If an appointment is missed or cancelled with less than 24 hours' notice, this may trigger compensation.
5. Check your bill afterwards. Compensation should normally appear automatically as a bill credit within the relevant timeframe.

If the underlying problem with your broadband is still ongoing, our guide to broadband problems covers some of the other steps you can take.

If you are considering leaving because of ongoing problems, you can also find more specific information in our guides to cancelling TalkTalk broadband, cancelling Sky broadband, cancelling Vodafone broadband, cancelling BT broadband, cancelling EE broadband and cancelling Virgin Media broadband.

If repeated service problems have you considering a switch, it is worth checking what else is available at your address.

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