- Ofcom automatic compensation pays set amounts for certain service failures without the customer needing to ask.
- The qualifying events are a total loss of service not fixed in time, missed engineer appointments, and delayed activation.
- Total loss of service triggers compensation if it is not restored after two full working days from being reported.
- Ofcom sets the payment rates and uprates them periodically, so the current figures are published by Ofcom.
- The scheme is voluntary for providers, but the major providers participate, covering most broadband customers.
Ofcom automatic compensation pays set amounts for total loss of service not fixed in time, missed engineer appointments, and delayed activation, without you asking. Major providers take part, and Ofcom sets the rates.
Last reviewed: June 2026
What automatic compensation is
Ofcom's automatic compensation scheme is a consumer protection that pays customers set amounts when certain things go wrong with their broadband or landline, without the customer having to ask. The principle is that for defined failures, compensation should be automatic, so that customers receive what they are owed rather than having to fight for it. This addresses a long-standing problem where compensation depended on customers knowing their rights and pursuing them. Under the scheme, participating providers calculate and pay the compensation themselves, usually as a credit on the bill.
The scheme covers three specific situations, and understanding exactly what qualifies, and what does not, is the key to knowing when compensation should arrive automatically.
The qualifying events
There are three qualifying events. The first is a total loss of service: where broadband or landline stops working completely and is not restored within two full working days of being reported, compensation accrues for each further day the service remains down. The second is a missed engineer appointment: where an engineer fails to attend a booked appointment as arranged, or cancels with less than the required notice, a fixed sum is due. The third is a delay to the start of a new service: where activation does not happen on the promised date, compensation accrues for each day of delay until the service starts.
| Event | When it applies | How it is paid |
|---|---|---|
| Total loss of service | Not restored after two full working days from report | Set amount per further day |
| Missed appointment | Engineer fails to attend or cancels late | Fixed sum per occurrence |
| Delayed activation | New service not started on promised date | Set amount per day of delay |
| Current rates | Set and uprated by Ofcom | See Ofcom for exact figures |
How payments are set
Ofcom sets the compensation rates for each qualifying event, and it uprates them periodically, so the precise current figures are those published by Ofcom. The structure is that total loss of service and delayed activation are paid as a set amount for each qualifying day, while a missed appointment is a fixed sum per occurrence. Because the rates are defined by Ofcom rather than each provider, customers of participating providers receive consistent compensation for the same failure. For the exact current amounts, the Ofcom automatic compensation pages are the authoritative source, as the figures are reviewed and updated over time.
Which providers take part
The scheme is voluntary for providers to join, but the major broadband and landline providers participate, which means most customers are covered. Where a provider is a member, the automatic compensation rules apply as set out by Ofcom. Where a provider is not a member, customers do not benefit from automatic payments and instead rely on the provider's own complaints and goodwill policies and on general consumer law. Checking whether a provider participates is worthwhile, as it affects what happens when a qualifying failure occurs.
How compensation is paid
For participating providers, compensation is automatic, meaning the provider should identify the qualifying event, calculate the amount and apply it without the customer having to claim. Payment is usually made as a credit on the customer's bill, typically within a set period after the issue is resolved. Because it is automatic, the main thing a customer needs to do is check that the expected credit actually appears. If a qualifying failure occurred and no compensation arrives, that is the point to raise it with the provider, since the payment was due automatically.
What does not qualify
Not every problem triggers automatic compensation. A slow connection that still works is not a total loss of service, so it falls under the speeds code and complaints process rather than the compensation scheme. Outages shorter than the qualifying threshold, or caused by certain circumstances outside the provider's control, may not qualify. Issues caused by the customer's own equipment are also excluded. Understanding the boundaries helps set expectations: the scheme covers specific, defined failures, while other problems are addressed through the broader complaints and dispute resolution routes.
How to make sure you receive it
Although compensation is automatic, a few steps help ensure it is received. Reporting a total loss of service promptly starts the clock, since compensation for total loss accrues from the report and the two full working days. Keeping a record of when a fault was reported, when an appointment was missed, or when activation was due and did not happen, provides evidence if the expected compensation does not appear. Checking the bill for the credit after the issue is resolved confirms it has been paid. If it has not, raising it with the provider, and escalating through the complaints process if necessary, is the route to obtaining what was due.
Compensation alongside other rights
Automatic compensation sits alongside other protections rather than replacing them. A prolonged outage might trigger automatic compensation and, separately, contribute to a broader complaint. A persistent speed problem is handled through the speeds code and the right to exit, not the compensation scheme. Where a dispute cannot be resolved, the alternative dispute resolution schemes remain available. Seeing automatic compensation as one part of a wider set of consumer protections helps a household use the right tool for each situation and ensures nothing it is entitled to is missed.
Frequently Asked Questions
How much is the Ofcom automatic compensation?
Ofcom sets the rates and uprates them periodically, so the precise current figures are those published by Ofcom. The structure is a set amount for each qualifying day of total loss of service or delayed activation, and a fixed sum for each missed engineer appointment. The Ofcom automatic compensation pages give the exact current amounts.
Which broadband providers pay automatic compensation?
The scheme is voluntary, but the major broadband and landline providers participate, covering most customers. Where a provider is a member, the automatic rules apply. Where it is not, customers rely instead on the provider's own policies and general consumer law, so checking whether a provider takes part is worthwhile.
Do I have to ask for automatic compensation?
No. For participating providers, compensation is automatic: the provider should identify the qualifying event, calculate the amount and apply it, usually as a credit on the bill, without the customer claiming. The main thing to do is check the expected credit appears, and raise it with the provider if it does not.
What counts as a total loss of service?
A total loss of service is where broadband or landline stops working completely, not merely slows down. Compensation accrues if it is not restored within two full working days of being reported, for each further day it remains down. A slow connection that still works is not a total loss and is handled through the speeds code and complaints process instead, so it is important to distinguish a complete outage from underperformance when judging which protection applies.
What if my ISP is not in the automatic compensation scheme?
Where a provider does not participate, customers do not receive automatic payments and instead rely on the provider's own complaints and goodwill policies and on general consumer law. If a dispute cannot be resolved, the alternative dispute resolution schemes remain available after a deadlock letter or eight weeks.
When does compensation for a missed appointment apply?
A fixed sum is due where an engineer fails to attend a booked appointment as arranged, or cancels with less than the required notice. As with the other qualifying events, for participating providers this should be paid automatically, usually as a credit on the bill, without the customer needing to claim it. Keeping a note of the appointment date and the fact it was missed provides evidence if the expected credit does not appear.
