I wonder if anyone can help me as I am getting different information.

I booked a flight through Expedia for a flight with Easyjet.

Easyjet cancelled our flight on the 4th October and we had to stay overnight (which they did eventually compensate us for). I have since read that if we were not informed of our cancelled flight then we would be entitled to compensation of approx. €250 per passenger. If the airline informed then this would not be paid. When I asked them about this, they advised that they have emailed Expedia and also called them to notify them of the cancelled flight a few months prior to our trip. I was never informed of the flight being cancelled until we turned up at the airport for our flight. Expedia say they were never told. Easyjet will not provide proof of the email being sent or who they spoke to or the date they say they made the call. Expedia will not do anything further in light of this as Easyjet will not prove they did it they just keep saying they did it.

How does this work with compensation being paid?

I would appreciate your comments on what to do next.;)

First you need to determine whether the compensation rule is correct or not. Since you used the Euro symbol for currency, this may be a local rule, not international. (you really should provide a general location in your profile, especially when asking legal questions)

Once you determine whether this rule does apply to you, you then need to take up the issue with either the agency that governs air travel (like the FAA for the US) or go to your equivalent of small claims court to file suit.