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Economic Development

º£½ÇÊÓÆµ Government 'takeover' of rail operators as passenger numbers and revenues plummet

Rail operators have seen a 70% drop in passengers

(Image: WESTERN MAIL)

The º£½ÇÊÓÆµ Government is effectively taking control of rail services in an emergency set of measures in response to franchise operators experiencing huge passenger and income losses due to the coronavirus.

The Department for Transport is suspending normal franchise agreements, initially for six months, and taken on all revenue and cost risk.

The move comes as rail operators have suffered a 70% drop in passenger numbers.

Revenues have also been hit hard with ticket sales down two-thirds on the same period last year, as more people are working from home along with the impact of social distancing.

The DfT said that franchise operators will continue to run services  day-to-day for a small predetermined management fee.

The employment terms and conditions of rail workers will not change and anyone holding advanced tickets will be entitled to free of charge refunds.

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.