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Barclays Banking App Outage: Compensation Details
Millions of pounds in compensation are on the table after a series of UK banking app outages, with Barclays leading the charge. A recent Treasury Committee report revealed at least 33 days' worth of downtime across nine major banks in the last two years, highlighting the widespread impact of these failures. This article details Barclays' compensation plan and what you can do if your bank has let you down.
Barclays' £12.5 Million Compensation
Barclays alone faces payouts of up to £12.5 million. This includes an estimated £5 million to £7.5 million for a three-day outage in January 2025, which coincided with payday for many and the self-assessment tax return deadline. The outage, caused by “severe degradation” of the bank's mainframe system, resulted in a staggering 56% failure rate for online payments. Barclays CEO Vim Maru has stated that no customer will be left "out of pocket" as a result of this incident.
Other Banks Affected and Compensation Paid
The Treasury Committee’s investigation exposed widespread IT failures across several major UK banks. While Barclays' compensation is the most substantial, other banks also paid out significant sums: HSBC (£232,697), Nationwide (£77,452), NatWest (£348,000), and Lloyds (£160,000) among others. This highlights a systemic issue requiring further investigation and improvements in banking infrastructure.
How to Claim Compensation After a Banking App Outage
If you experienced financial hardship due to a banking app outage, here's what to do:
- Contact your bank: Report the incident and explain how the outage affected you. Provide evidence of any additional costs incurred.
- Contact the Financial Ombudsman Service (FOS): If your bank's response is unsatisfactory, the FOS can investigate and potentially order compensation.
Remember: Banks are not obligated to compensate every disruption, but they are expected to fairly assess individual claims. Providing detailed evidence of financial loss or significant inconvenience is crucial for a successful claim.
The Bigger Picture: Addressing Systemic Issues
The Treasury Committee's report reveals a critical need for modernization within the UK banking sector's IT infrastructure. The sheer number of outages, encompassing a total of 803 hours across nine banks, is unacceptable. This highlights the need for increased investment in robust systems and stronger regulatory oversight to prevent future disruptions and protect consumers.
Have you been affected by recent banking app outages? Share your experience with us.
