CUSTOMERS of major broadband and landline providers including Sky and BT are set for payouts totalling £142 million as part of a new compensation scheme for poor service.

Users will now see accounts automatically credited if they experience slow repairs, missed appointments or delayed installations, without having to chase companies for redress.

The scheme is the result of a review by industry watchdog Ofcom, which has said many people are not receiving services to the standard they expect, or are failing to be adequately compensated when that service falls short.

Companies including BT, Sky, TalkTalk, Virgin Media and Zen Internet have agreed to the scheme, which is expected to come into force in early 2019.