EDIT: To clarify my original question to make it clear.
I flew with easyjet from London Gatwick to Edinburgh on the 10th of June. The flight was cancelled 3 hours before the flight. I arrived at the airport and asked for a hotel and food. I was instructed to book a hotel and pay for food and then submit a request for reimbursement of expenses directly incurred due to this. Easyjet did not provide any food or accommodation. I took the next flight provided by easyjet on the 11th of June.
I submitted two claims to easyjet.
A claim for expenses incurred due to accommodation and food due to the cancelled flight (again easyjet did not provide this but said we should ask for reimbursement).
A claim under EU 261 (UK 261) entitling me to 220 GBP compensation per passenger for flights under 1500km that are delayed for longer than 3 hours.
I have now Received 300GBP from easyjet for the hotel and food. But have received no compensation under EU 261.
Based on the answers provided here I have concluded the following.
If a flight is cancelled the airline has a duty of care and must provide accommodation and food to passengers. Easyjet has done this by reimbursing me for my expenses.
Under EU 261 passengers are entitled to 220 GBP for flights delayed over 3 hours. EasyJet has not provided this to me.
I will therefore take this claim further to see that I get the correct compensation.
I am confused what exactly the compensation in EU 261 is for. I was delayed on an easy jet flight and applied for compensation for my expenses as well as compensation under EU 261 (also applies to flights within the UK under UK 261).
However, easyjet is saying that I am not entitled the 250 euro compensation as I already claimed expenses incurred by the delay. Is this correct? Or am I entitled to both compensation for my expenses and compensation under EU 261?