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The Automatic Compensation Scheme: Are You Owed Money for Outages?

Broadband down? You may be owed cash. Learn how the Automatic Compensation Scheme pays you for outages & delays without you even asking.

By Top Providers Published

You’ve probably been there: the internet drops right before a big meeting, or the TV service glitches during the climax of your favourite show. For years, getting compensation for this hassle meant fighting your way through customer service. But what if the provider had to pay you automatically?

That’s the premise of the Automatic Compensation Scheme. Here’s how it works and how to make sure you get what you’re owed.

What is the Automatic Compensation Scheme?

The Automatic Compensation Scheme is a voluntary industry-wide initiative adopted by major UK broadband and landline providers. Its core principle is simple: if the service you pay for fails, you should be compensated automatically, without having to ask.

The goal is to improve service standards and ensure customers are fairly treated when things go wrong.

Which Providers Are Part of the Scheme?

Most of the big names are signed up, including:

  • BT

  • Sky

  • TalkTalk

  • Virgin Media

  • Vodafone

  • EE

  • Plusnet

Important Note: Smaller, often rural-focused providers (like B4RN or Community Fibre) may not be part of the scheme, so it’s worth checking your provider’s specific policy.

What Triggers a Payout? The 3 Key Areas

Compensation is triggered for three specific issues, and the payments are fixed.

1. Delayed Fix After a Loss of Service

  • The Scenario: Your broadband or landline stops working completely, and it takes more than two working days to fix.

  • The Payout: £9.33 per calendar day that the service is not restored, including the first two days.

2. Missed Engineer Appointments

  • The Scenario: You take a day off work to wait for an engineer, but they don’t show up or cancel with less than 24 hours’ notice.

  • The Payout: £29.17 per missed appointment.

3. Delayed Start of a New Service

  • The Scenario: You sign up for a new broadband or landline service, but the provider fails to activate it on the promised date.

  • The Payout: £6.25 per calendar day that the activation is delayed, including the first missed day.

Is the Compensation Really “Automatic”?

In theory, yes. The providers who have signed up are obligated to track these issues and credit your account without you needing to complain.

However, the system isn’t perfect. Providers rely on their own systems to detect outages and missed appointments. There have been instances where customers have experienced qualifying issues but did not receive a payment, either due to system errors or because the provider’s threshold for what constitutes an “outage” wasn’t met.

Your Action Plan: How to Ensure You’re Paid

Don’t just assume the system will work. Be proactive.

  1. Keep Your Own Log: If your internet goes down, note the date and time it dropped and when it came back. If you have an engineer booked, note the appointment date.

  2. Check Your Bill: The compensation should appear as a credit on a future bill. Scrutinise your statements carefully following any service issue.

  3. Complain if You’re Owed: If you believe you’re owed compensation but haven’t received it, you need to act.

    • Step 1: Contact your provider directly. Point out the dates of the service failure and remind them of their obligations under the Automatic Compensation Scheme.

    • Step 2: If they refuse, escalate your complaint through their formal process and request a deadlock letter.

    • Step 3: Take your case to the Communications Ombudsman or CISAS. They will investigate independently and can force your provider to pay you.

The Fine Print: Important Limitations

  • “Reasonable Steps”: The provider may not pay if the delay was due to something beyond their control, like extreme weather or you missing an earlier appointment.

  • Credit, Not Cash: The compensation is almost always applied as a credit to your account, not sent to you as a cash payment.

  • Mobile Broadband Excluded: The scheme typically applies to fixed-line broadband and landlines, not mobile data services.

The Bottom Line: Are You Owed Money?

Quite possibly, yes.

While the scheme is a significant step forward for consumer rights, it is not a fully foolproof system. It shifts the burden of proof from the customer to the provider, but it doesn’t eliminate the need for vigilance.

Your internet connection is a service you pay for. When it fails to deliver, the Automatic Compensation Scheme is your right to get some of that money back. Check your bills, know your rights, and don’t be afraid to challenge your provider if their “automatic” system fails you.