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Written question asked by Lord Bradshaw (Liberal Democrat) on Monday, 11 March 2024, in the House of Lords. It was due for an answer on Monday, 25 March 2024. It was answered by Lord Davies of Gower (Conservative) on Monday, 25 March 2024 on behalf of the Department for Transport.

Railways: Compensation

Question

To ask His Majesty's Government, further to the Written Answer by Lord Davies of Gower on 6 March (HL2702), whether any proportion of the costs of the Delay Repay scheme have resulted in a direct cost to public funds; and if so, how much.

Answer

At the onset of the COVID-19 pandemic, when revenues dropped very significantly, the Government introduced emergency agreements that transferred day-to-day revenue and cost risks to the Department. These agreements protected services that key workers depended on. Under the agreements, the Government effectively receives the revenue and pays an operator’s reasonable costs, subject to the revenue incentive mechanism introduced recently to encourage operators to grow patronage and revenues.

Operators are compensated by the Government for all reasonable costs incurred that are accumulated in accordance with the terms of the contract, including those in relation to Delay Repay.

Payments made to rail passengers for Delay Repay as well as discretionary compensation are published annually, and for 2022-23 totalled £101 million.

Secondary information

Type
Written question
Reference
HL3168
Session
2023-24
Related items
Railways: Compensation
Wednesday, 6 March 2024
Written questions
House of Lords
Subjects
Compensation Expenditure Railways Standards
Contains statistics
Yes
Link
View this Written question on www.parliament.uk