Every Tuesday, we answer a reader’s financial problem or consumer dispute – you can email yours to moneyblog@sky.uk. Today’s is…
My contract with Plusnet was coming to an end in April 2025 and I decided to switch from broadband to full fibre. The activation date was 14 April but nine months later I am still waiting for the service to be activated. Other properties around me have full fibre. I was paying £28.99 a month and now having to pay out-of-contract pricing at £62.44 a month. Delays have been blamed on work needing to be scheduled by Openreach. Plusnet have told me they will refund the difference for the out-of-contract pricing and that they won’t apply the 60-day missed service date compensation cap. As of 13 January this means they owe me £1,709.76 for the missed activation date and £275.12 for out of contract refund. When phoning Plusnet I have been discouraged to leave as I will likely face the same issue with other supplies and may not get the compensation above. This has left me in limbo.
Kevin, Rye, East Sussex
Hi Kevin, thanks for getting in touch. Anyone would be at their wit’s end after being promised something for so long only for it not to be delivered.
It’s all very well being promised compensation eventually, but that offer seems to have come with strings – ie, you don’t leave Plusnet. In the meantime, you’ve been left out of pocket and with a lesser service for nine months.
We were hopeful of getting answers from Plusnet for you as clearly this was an unacceptable state of affairs.
But it turns out we didn’t need to. A few days after your email to me, and a day before we emailed their press team (so we don’t deserve any credit), Plusnet got in touch to confirm you’d get more than £2,000 in compensation (though you’re still waiting for the cash).
I’m told the company’s supplier underestimated how long it would take to deliver full fibre to your direct area.
Happy to finally have the compensation you were owed, you’ve now left Plusnet and opted for a 5G router with EE. You say it’s giving you the same speeds as Plusnet full fibre offered.
While you were clearly clued up on your rights, others may not be, particularly about Ofcom’s automatic compensation scheme, which was responsible for the bulk of Plusnet’s payout.
What is it?
Ofcom’s compensation scheme is a consumer protection initiative designed to ensure that residential broadband and landline customers in the UK get money back automatically after reporting a genuine fault, without having to chase refunds or make a claim.
The scheme was introduced in April 2019 and has since been adopted by most major telecoms providers.
Under this system, if your broadband or landline service fails to meet key service standards – such as being repaired on time after a fault or starting on the agreed activation date – your provider must pay you compensation automatically. That means credits or refunds are applied to your account without you having to request them.
Which providers participate?
The scheme is voluntary, so it only applies if your provider has signed up. Most major UK residential broadband and landline providers participate, including:
- BT
- EE
- Sky (including NOW Broadband)
- TalkTalk
- Plusnet
- Virgin Media
- Vodafone
- Hyperoptic
- Utility Warehouse
- Zen Internet
Participation can vary in some circumstances. For example, coverage may depend on the network your service runs on. Customers should check directly with their provider to confirm they are covered.
Note: The scheme generally applies only to residential customers – business broadband and landline contracts are typically not included.
When does compensation kick in?
You are entitled to automatic compensation if any of the following happen:
- Delayed repair after a total loss of service – if your broadband or landline stops working completely and is not fixed within two full working days of reporting the fault to your provider;
- Missed engineer appointments – if an engineer does not attend a scheduled appointment or cancels it with less than 24 hours’ notice;
- Delays to the start of a new service – if your provider fails to activate your new broadband or landline service on the agreed date.
“Working days” generally mean Monday to Friday and exclude bank holidays. The two-day repair window begins the first full working day after the fault is reported.
How much compensation will you get?
The amounts are set under the scheme and are adjusted periodically in line with inflation. Current standard rates are:
- £9.98 a day for each calendar day your service remains fully out of action after the initial two working days;
- £31.19 for a missed engineer appointment;
- £6.24 a day for every day a new service is delayed beyond the agreed start date.
Providers can put a cap on the amount of compensation they pay out. After 30 days of an automatic compensation payment occurring, they can serve a cease notice to let you know that automatic compensation payments will stop after a further 30 days.
After this, your provider needs to take reasonable steps to provide a suitable alternative service. If they are not able to give you a suitable alternative, you will still be entitled to automatic compensation under the scheme.
Compensation must be paid automatically, typically as a credit to your bill, within 30 calendar days of the issue being resolved.
Limits and caveats
There are important exceptions. Compensation will not usually be paid if the problem is caused by something inside your home, such as faulty equipment, damaged internal wiring or issues you are responsible for.
You will not qualify if you miss your own engineer appointment or prevent access to the property. The scheme also does not cover mobile services, pay-TV or streaming outages – it applies only to fixed broadband and landline services.
What if you do not receive compensation you think you are owed?
If you believe compensation has not been paid when it should have been, you should first raise the issue with your provider. If the complaint is not resolved, you can escalate it through the company’s formal complaints process and, ultimately, to an Ofcom-approved alternative dispute resolution scheme.