Barclays expects to pay up to £7.5mn in compensation to customers after an outage at the UK bank meant that more than half of its payments failed over a three-day period last month. The bank said in a letter to the Treasury select committee — which on Thursday published the findings of a probe into the largest UK banks’ IT outages in the wake of the Barclays incident — that it expected to pay between £5mn and £7.

The bank said in a letter to the Treasury select committee — which on Thursday published the findings of a probe into the largest UK banks’ IT outages

Customers of Barclays were unable to access online and mobile banking during the period, though were still able to use their debit cards as usual, including withdrawing money from an ATM. Some 56% of its payments failed during the period as a result of “severe degradation” to its UK mainframe.

Barclays is expected to pay the largest amount of compensation of any bank in the last two years. More reports of fraud are expected, the bank said, as it saw "some instances" where people attempted to take advantage of the incident.

An outage led to days of disruption for Barclays customers at the end of January, coinciding with payday for many workers.

Barclays is set to pay up to £12.5 million in compensation to people who have been hit by outages over the last two years. Customers were left angry after the outage at the end of January caused days of payment disruption. This coincided with payday for millions of people and for those submitting self-assessment tax returns.

The high street bank said in a letter to the Treasury select committee that it expected to pay between £5 million and £7.5 million to customers affected

Barclays confirmed that, during that incident, more than half of attempts to make an online payment failed. The bank estimated that it expects to pay out between £5 million and £7.5 million in compensation for the specific outage, adding to an estimated £5 million for other incidents between January 2023 and January 2025.

The high street bank said in a letter to the Treasury select committee - which on Thursday published the findings of a probe into the largest UK banks' IT outages in the wake of the Barclays incident - that it expected to pay between £5million and £7.