The world of banking has gone digital, and millions of people rely on apps to manage their money. However, when those apps fail, chaos often follows. Barclays, one of the UK’s biggest banks, has faced this nightmare multiple times in recent years. Customers have struggled to access their accounts, pay bills, or even buy groceries due to repeated outages. Now, in March 2025, Barclays finds itself in the spotlight again, promising millions in compensation to affected users. This article dives deep into the latest Barclays banking app outage compensation saga, breaking down what happened, who qualifies, and what it means for you.
With technology glitches piling up and customer frustration boiling over, Barclays has agreed to shell out up to £12.5 million to make things right. The bank’s app and online services have crashed more often than anyone would like, leaving people stranded at critical moments. Whether you’re a Barclays customer or just curious about the drama, this piece covers everything you need to know. Let’s explore the outages, the compensation plan, and what’s next for this banking giant.
The Barclays Banking App Outages: A Growing Problem
Barclays has built a reputation as a major player in UK banking, serving over 20 million personal customers. Its app promises convenience, letting users check balances, transfer money, and pay bills with a few taps. But lately, that promise has crumbled under the weight of recurring tech failures. In 2025 alone, Barclays customers have faced multiple outages, with the most significant ones hitting hard in January, February, and March.
The trouble started on January 31, 2025, when the app and online banking went down for three straight days. Imagine trying to pay your rent or file your taxes, only to find your bank account locked. That’s exactly what happened to millions of users during this meltdown. The timing couldn’t have been worse—January 31 marked the deadline for HMRC self-assessment tax returns, and for many, it was also payday. Barclays later blamed a “software failure” in its UK mainframe system, not a cyberattack, but that explanation did little to calm furious customers.
Then, just when people thought the worst was over, another outage struck on March 8, 2025. Reports flooded in around 7 a.m., with over 1,000 complaints logged on Down Detector within hours. Customers couldn’t transfer funds or make payments, sparking outrage on social media. Some called Barclays “the worst bank ever,” while others vowed to switch providers. Although the bank fixed the issue by Saturday afternoon, the damage was done. These repeated disruptions have turned a convenient tool into a source of stress for many.
Why Are These Outages Happening?
Technology drives modern banking, but it’s not foolproof. Barclays isn’t the only bank struggling with outages—Lloyds, Halifax, and Nationwide have faced similar woes—but it’s taken the biggest hit in 2025. The Treasury Select Committee, a group of MPs who keep an eye on financial institutions, dug into the problem. Their findings paint a troubling picture: nine major UK banks racked up over 803 hours of unplanned outages in the last two years. That’s more than a month of downtime!
For Barclays, the January outage stemmed from a glitch in its mainframe operating system. The bank insists it wasn’t hacked, but the technical failure still crippled services for days. Experts suggest aging infrastructure and heavy reliance on complex digital systems could be to blame. As banks push for more online services and close physical branches, the pressure on their tech grows. When something breaks, the fallout spreads fast, leaving customers unable to access their own money.
The March 8 outage added fuel to the fire. While Barclays hasn’t released a full explanation yet, the timing—right after a compensation announcement—raised eyebrows. Some speculate the bank rushed fixes after January’s mess, only to stumble again. Whatever the cause, these incidents highlight a bigger issue: banks need to invest more in reliable tech. Until they do, customers will keep paying the price.
Barclays Steps Up with Compensation
After months of headaches, Barclays finally faced the music. On March 6, 2025, the bank told the Treasury Select Committee it would pay out big to affected customers. For the January outage alone, Barclays expects to hand over £5 million to £7.5 million. When you add up all the disruptions since January 2023, that total climbs to a whopping £12.5 million. It’s a hefty sum, and it marks the largest compensation payout by any UK bank in the past two years.
The bank’s UK chief executive, Vim Maru, didn’t mince words in his apology. He acknowledged the “loss, distress, and inconvenience” customers suffered through no fault of their own. Barclays plans to contact affected users directly, promising to review each case individually. If you missed a tax deadline or racked up late fees because of the outages, the bank aims to cover those costs. Some might even score goodwill payments for the stress alone.
However, the details remain fuzzy. Barclays hasn’t said how much each person will get or when the money will arrive. The amount likely depends on how badly the outage hit you—did you miss a mortgage payment, or just fume at a blank app screen? Either way, the bank wants to ensure “no impacted customer is left out of pocket.” That’s a bold claim, and customers are watching closely to see if Barclays delivers.
Who Qualifies for Compensation?
Wondering if you’re in line for a payout? Barclays hasn’t released an exact list, but some clues point the way. If you couldn’t access your account, make payments, or transfer money during the January 31 to February 2 outage, you’ve got a strong case. The same goes for the March 8 glitch—anyone left unable to use the app or online banking could qualify. The key is showing how the outage hurt you financially or otherwise.
For example, if you faced late fees because you couldn’t pay a bill, Barclays might reimburse you. Missed the tax deadline and got slapped with a 7.25% penalty from HMRC? The bank could cover that too, since HMRC won’t budge on its rules. Even if you didn’t lose money, you might still claim compensation for the hassle. MoneySavingExpert suggests keeping records like screenshots, emails, or receipts to back up your story.
Barclays says it’s taking a “proactive approach,” reaching out to affected customers first. But if you haven’t heard from them, don’t wait—contact the bank yourself. Call 0345 600 2323, message them through the app (when it works), or hit them up on social media. If they drag their feet or deny your claim, you can escalate it to the Financial Ombudsman Service. This independent body can force Barclays to pay if they rule in your favor.
What Customers Are Saying
Barclays customers aren’t holding back their feelings. After the March 8 outage, social media lit up with frustration. One user on X raged, “Barclays is ruining lives—app down again, can’t access my money!” Another wrote, “I’m done. Switching banks ASAP.” The January fiasco already had people fuming, and this latest glitch pushed many over the edge. Some even dubbed Barclays “the worst bank ever,” threatening a mass exodus.
The anger makes sense—imagine planning a weekend trip, only to find your funds locked away. Or picture running a small business and missing payroll because payments won’t go through. Real people faced real problems, and they want more than apologies. While Barclays insists services are “back up and running,” trust has taken a hit. Compensation might soothe some wounds, but it won’t erase the memory of being stranded.
On the flip side, a few customers praised the bank’s response. One X post noted, “Barclays sorted it by afternoon—better than last time.” Still, the loudest voices demand action, not just cash. They want a banking app they can rely on, not one that crashes when they need it most.
FAQs:
1. Who can claim compensation from Barclays for the app outages?
Anyone who couldn’t access their account, make payments, or transfer funds during the January 31 to February 2 or March 8, 2025, outages might qualify. You’ll need to show how it impacted you, like missing a bill or facing a fee. Barclays plans to contact affected customers, but you can reach out too.
2. How much compensation will Barclays pay me for the outages?
It depends on your losses. Barclays estimates £5 million to £7.5 million for January’s outage, with a total of £12.5 million across two years. If you faced big expenses, you could get hundreds; minor inconvenience might net you £20 to £50. They’ll decide case-by-case.
3. How do I apply for compensation if I was affected?
Drive Collect evidence like receipts or screenshots, then contact Barclays at 0345 600 2323 or through the app. Tell them what happened and what it cost you. If they don’t respond or deny you, escalate it to the Financial Ombudsman Service for a fair shot.
4. Why does the Barclays app keep crashing in 2025?
Fapelli Experts point to old tech systems and software glitches, like the mainframe failure in January. The bank’s pushing digital services hard, but its infrastructure struggles to keep up. Barclays says it’s not cyberattacks—just technical hiccups—but they’re working on upgrades.
To read more, Click Here
