WHAT IT WILL MEAN FOR YOU

What’s happened?

The Department for Transport is partly renationalising Britain’s railways, meaning the Government will be responsible for the finances. Since 1996, private companies have been contracted to run trains under a system of franchise agreements, which have now been suspended for six months. Fares will be paid directly to the Government and ministers will take on responsibility for revenue and losses.

Why has this happened?

Coronavirus has led to plummeting passenger numbers and ticket revenues, putting operators at risk of insolvency. Many were struggling even before the pandemic. The Government has intervened to prevent them from going under, which could have led to serious disruption, making it impossible for some key workers to travel and lumbering taxpayers with multi-billion-pound costs.

Will it make services worse?

In theory, it shouldn’t. The private companies are still running the basic service. But rather than paying a premium to the Government based on their earnings, they will be paid a ‘small management fee’ to incentivise them to meet performance targets.

What about my season ticket?

The DfT says passengers will be able to claim a refund for ‘time unused on their tickets’. This is to make sure that people forced to work from home don’t lose out. Passengers are being told to contact their operator to see what they are entitled to, and any advance tickets bought before 7am yesterday will also be refunded.