You are here: Home - Household Bills - News -

Broadband users set for automatic compensation for poor performance

Written by: Paloma Kubiak
Frustrated broadband and landline customers are in line to receive £142m in automatic compensation payouts under a new Ofcom scheme.

Communications regulator, Ofcom, today announced that broadband and landline customers will get money back from providers when they experience poor service or performance without having to claim the money back.

It said many people are not getting the standard of service they expect, and are not being adequately compensated for poor service. It added that providers have been slow to keep up with users’ needs.

Customers experiencing slow repairs, missed appointments or delayed installations will be compensated automatically – money will be credited to their accounts.

However, not all providers have signed up for the scheme. So far, BT, Sky, TalkTalk, Virgin Media and Zen Internet have agreed to introduce automatic compensation. Together they serve around 90% of broadband and landline customers in the UK. Ofcom understands Plusnet and EE have also indicated they will join the scheme.

Here’s how it will work and what compensation you will receive:


Ofcom said launching the automatic compensation scheme “will be complex and require significant changes to providers’ billing systems, online accounts and call centres” so it is looking to implement it within 15 months.

Currently, compensation is paid out  in only around 15% of cases, including slow repairs, delayed installations or missed engineer appointments.

Lindsey Fussell, Ofcom’s consumer group director, said: “Waiting too long for your landline or broadband to be fixed is frustrating enough, without having to fight for compensation.

“So providers will have to pay money back automatically, whenever repairs or installations don’t happen on time, or an engineer doesn’t turn up. People will get the money they deserve, while providers will want to work harder to improve their service.”

Alex Neill, Which? managing director of home services, said: “We are pleased that compensation for poor broadband is going to become automatic, as it is now such an essential part of all of our everyday lives.

“For all consumers to get what they’re entitled to, it’s vital that all providers play fair and sign up to this scheme.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Winter holiday prices slashed by ‘unprecedented’ amount – up to 56%

Prices to popular winter sun spots such as Miami, the Maldives and Morocco have plummeted, and some short-haul destination package...