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Broadband compensation: Can you get money for your internet outages?

It can be very frustrating when your internet goes down for days at a time. Here's what you can do if you have a significant broadband outage.

man looking concerned at his laptop during a broadband outage

Many of the leading UK broadband providers offer compensation if your outage is their fault - the credit from which is automatically added to your account. Read on to learn how to check if you're eligible for any compensation from your provider.

Ofcom’s automatic compensation scheme, allows customers to receive credit on their account if something goes wrong with their broadband. Because the credit is paid automatically, customers don’t need to do anything to receive the compensation.

The Ofcom automatic compensation scheme was introduced in April 2019 and revised in April 2021.

The automatic compensation scheme is currently only available to residential customers, but some providers may offer compensation for businesses on a case-by-case basis. There is, however, increasing pressure from business groups to also extend the scheme to business customers.

Ofcom is continually reviewing the scheme and considering potential improvements or expansions.

Typically, there are three broadband outage scenarios you can be compensated for:

Situation Details Compensation amount
Delayed repair following loss of service
"If your service has stopped working and isn’t fully fixed after two working days, you will get compensation."
"You get an initial £9.76 for those two days. , ,Plus, for each full calendar day your service isn’t repaired you’ll get £9.33."
Missed appointment
If an engineer doesn’t turn up for an appointment or cancels with less than 24 hours’ notice.
"You’ll get £30.49 per missed appointment. , ,This doesn’t apply if you’re the cause of the missed appointment."
Delay to the start of your service
"If your provider has promised a particular start date for your service and fails to stick to it, you’ll be automatically compensated."
"For each full calendar day of delay, including the missed start date, you’ll get £6.10."

Table showing the automatic compensation awarded across three scenarios.

Compensation amounts increase annually in line with inflation. The increase begins on 1st April every year. The increase is based on the Consumer Price Index (CPI) of 31st October the previous year. The payment increase only applies to new issues that occur after 1st April.

A total loss of service is when your entire broadband service has been down for at least 24 hours. 

This could include issues like: 

  • Network outages: Something’s wrong on the provider’s side, like a damaged cable, maintenance, or a system issue.

  • Hardware issues: Your router or modem might be broken, unplugged, or misconfigured.

  • Account problems: If there’s an issue with your payment or account, the provider might pause your service.

  • External factors: Things like bad weather, power outages, or someone accidentally cutting a cable during construction can disrupt the connection.

  • Configuration or software problems: Sometimes, the settings on your device or the network can cause the connection to fail.

 

If this happens, contact your broadband provider to report the issue. They’ll usually confirm if it’s a widespread problem or help you troubleshoot. If it takes too long to fix, you may be entitled to compensation depending on their policy.

Broadband outages: What to do when your broadband goes down.

The Ofcom automatic compensation scheme is voluntary. These broadband providers have chosen to sign up to the scheme. More providers may join in the future. 

  • BT (joined April 2019)
  • EE (joined May 2021)
  • Hyperoptic (joined October 2019)
  • Plusnet (joined May 2022)
  • Sky, including NOW Broadband (joined April 2019)
  • TalkTalk - restrictions apply for customers not on the Openreach network (joined April 2019)
  • Utility Warehouse (joined February 2020)
  • Virgin Media (joined April 2019)
  • Vodafone, restrictions apply for customers not on the CityFibre network (joined November 2021)
  • Zen Internet (joined April 2019) 

How long will my compensation for broadband outage take?

You’ll receive your automatic broadband outage compensation no later than 30 calendar days after the scheduled appointment

Broadband outage issue When you should receive your compensation
Delay to new service
No later than 30 calendar days after the issue is resolved (or the service is cancelled)
Loss of broadband
No later than 30 calendar days after the issue is resolved (or the service is cancelled)
Missed engineer appointment
No later than 30 calendar days after the scheduled appointment

Table showing when automatic compensation will be paid for broadband outage issues.

Broadband outage compensation will show as a credit on your bill unless you’ve agreed otherwise with your provider. The credit will appear on your account within 30 days but may not show on your bill until a later date. 

Your provider can offer you an alternative form of compensation instead of account credit. This must be of the same or higher value, and they must tell you what you could receive as account credit.

How will I receive my compensation for no internet?

Broadband outage compensation will show as a credit on your bill unless you’ve agreed otherwise with your provider. The credit will appear on your account within 30 days but may not show on your bill until a later date. 

Your provider can, however, offer you an alternative form of compensation instead of account credit. This must be of the same or higher value, and they must tell you what form the credit will take.

These alternatives could include:

  1. Free services: Providers could give customers free upgrades or extra features, like:

    • Faster internet speeds

    • More TV channels or streaming options

    • Extra data for mobile plans

  2. Bill discounts: Instead of a one-time credit, customers might receive a percentage off their bills for a few months.

  3. Loyalty rewards: Customers could earn points in a loyalty program that can be used for discounts or special offers.

  4. Equipment upgrades: Providers might offer free or discounted new equipment, like routers or set-top boxes, to improve service.

  5. Extended contracts: Customers could get extra months of service at their current rate without paying more.

  6. Service add-ons: Free installation of additional services, like Wi-Fi boosters or security features.

  7. Priority support: Affected customers might have access to faster customer service or dedicated support lines.

  8. Goodwill gifts: Providers could give small gifts or vouchers as a friendly gesture to apologise for the inconvenience.

It’s important to remember that while these alternative compensation options can be considered, they need to fit with the goals of the automatic compensation scheme. This ensures that they’re fair and effectively address service quality problems.

In what circumstances would I not be eligible for broadband outage compensation?

There are a few circumstances where you would not be eligible for broadband outage compensation:

  • If the loss of service is due to equipment or activity in your home  
  • If you breach your contract, caused the failure or prevented the issue being resolved. For example, if you ask for a later engineer appointment than the one offered and this delays repairs, you won’t receive compensation

After 30 days of compensation payments, your broadband provider can tell you they will stop payments after a further 30 days. After this, they need to provide you with a suitable alternative service. If they can’t, you are still entitled to the automatic compensation payments. 

In most cases, providers must pay automatic compensation for circumstances outside your control, including extreme weather and strikes, for example. There may be exceptions to this. If your internet provider does claim an exception, they need to clearly communicate their reasons and continue to act in your best interests.

If your provider is not paying you automatic compensation and you’re still without broadband, you won’t be charged for the service.

What impact has the automatic compensation scheme for broadband had?

In 2020 Ofcom ran a review of the scheme and found that it’s had an incredibly positive impact on service quality and customer satisfaction since its introduction in 2019. This includes:

  1. Increased compensation payments: In the 6 months before the scheme started, it’s estimated that major telecom companies paid around £8 million in compensation to customers. In the same period after the scheme was introduced, they paid over £20.7 million.

  2. Improved service quality: The scheme has led to better service quality, including about 136,000 fewer late repairs on Openreach's network. Companies have also made efforts to improve their services, such as training call centre staff better and enhancing quality checks.

  3. Higher customer satisfaction: While specific satisfaction ratings aren't detailed, the increase in compensation and improvements in service suggest that customers are happier with their service.

  4. Consistent compensation: The scheme ensures that customers automatically receive fair compensation when they experience poor service, making the process easier for everyone.

Incentives for providers: The automatic compensation encourages telecom companies to resolve issues quickly and enhance their overall service quality.