Rail franchises operators & contracts

23.03.20

Government announces rail emergency measures

The Government have announced today (Mar 23rd) that they are taking emergency measures to sustain and withstand necessary rail services as operators face momentous drops in their income.

The Department for Transport is temporarily suspending normal franchise agreements and transferring all revenue and cost risk to the government for a limited period, primarily six months.

Operators will continue to run services day-to-day for a small prearranged management fee.

This will allow the government to ensure that trains required for key works and essential travel can continue to run. No other passengers should travel. As previously announced, services from today will be reduced.

The railways have already seen up to a 70% decrease in passenger numbers. Rail fares revenue has also reduced as the number of people working from home has increased and adopted social distancing, with a total ticket sale down by two-thirds from the equivalent date in 2019.

The Government has provided today’s offer to lessen disruption to the rail sector, vital to the wider UK economy, through these turbulent times.

Allowing operators to enter insolvency would cause significantly more disruption to passengers and higher costs to the taxpayer. The management fee will allow operators to act in the national interest in tackling Covid-19.

Secretary of State for Transport, Grant Shapps, said: “We are taking this action to protect the key workers who depend on our railways to carry on their vital roles, the hardworking commuters who have radically altered their lives to combat the spread of coronavirus, and the frontline rail staff who are keeping the country moving.

“People deserve certainty that the services they need will run or that their job is not at risk in these unprecedented times. We are also helping passengers get refunds on Advance tickets to ensure no-one is unfairly out of pocket for doing the right thing.

“These offers will give operators the confidence and certainty so they can play their part in the national interest.” 

Comments

There are no comments. Why not be the first?

Add your comment

 

related

rail technology magazine tv

more videos >

latest rail news

Railway Rainbows needed for displays at railway stations

07/04/2020Railway Rainbows needed for displays at railway stations

Network Rail’s station teams are inviting the public to send in home-made pictures of rainbows with a railway theme, which will be displaye... more >
90% decrease in King’s Cross station users

07/04/202090% decrease in King’s Cross station users

Network Rail has thanked the public who would usually pass through King’s Cross station for following government guidance and only travelli... more >
Network Rail colleagues work together to produce protective gear for NHS

07/04/2020Network Rail colleagues work together to produce protective gear for NHS

Two Network Rail employees have worked together to help one colleague’s partner make protective gowns for NHS nurses in Northamptonshire. ... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

Maximising efficiency requires investment in data, but it’s rewards for rail could be extensive

14/11/2019Maximising efficiency requires investment in data, but it’s rewards for rail could be extensive

Rail Technology Magazine’s Matt Roberts explains the significant role data can play within the future development of the rail industry. Standing as a cornerstone of the UK transport network, the rail industry is forever striving to innovate and maximise efficiency in all aspects of its work. Data is just one such way of achievi... more >
read more blog posts from 'the sleeper' >

comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >
Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

02/07/2019Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

Smart electrification is the way to boost clean energy resources, argues Leo Murray, director at 10:10 Climate Action. Contractors are clear... more >
Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

02/07/2019Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

The TCR Midlands conference is only days away and tickets are going fast for the sector event of the year at the Vox Conference Centre in Birming... more >

rail industry focus

View all News

interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he wo... more >