Compensation paid to passengers for train delays in the UK has reached record levels, with annual payouts exceeding £100m and the number of insurance claims for train delays and cancellations continuing to rise.
Payments to passengers for travel disruption reached £101.3m in the year to April 2023, an increase of 155% from £39m in 2021-22..
latest official Data from rail regulatorThe Department of Rail and Road has indicated that the financial hit is likely to be even bigger again in 2023-2024. The number of approved claims recorded across all UK rail operators by early January was 4.6 million, surpassing last year’s tally with just a few months remaining.
While the total compensation partially reflects the recovery in rail travel following the coronavirus crisis, the increase far outweighs the 40% increase in passenger numbers.
Approximately 320,000 trains in the UK have been canceled or partially suspended over the past year. Strikes, staff shortages, damage to rail infrastructure, and mechanical breakdowns on trains all contributed to a year of rail disruption and delays.
Labor said this showed taxpayers were “bearing responsibility” for the deterioration of rail services.
Significant rail reform is promised, but under current contracts the compensation bill is covered by taxpayers, with the government paying management fees to operators regardless of performance and absorbing the cost of lost revenue. .
Payments for delays only cover scheduled services, and trains removed from the timetable are generally not eligible for compensation. The policy has drawn heavy criticism on routes such as the Avanti West Coast and the TransPennine Express.
The increase in billings partly reflects an increase in automatic payments, with some rail operators now offering instant payments to passengers who booked their journeys in advance through their websites, or to registered pass holders during the disruption. We are issuing refunds. The industry has also improved its response to complaints, with more than 99% of complaints resolved within 20 days.
The Ministry of Transport has been contacted for comment.
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Labor says some of the biggest cancelers are being punished for their failures, with Cross Country and Avanti West Coast’s parent companies paying out millions to shareholders and being granted contract extensions by ministers last year. Stated.
Shadow Transport Secretary Louise Hague said: “Thanks to this Government, if a service is delayed or cancelled, it will make no difference to the management fees that private rail operators receive. “I’m getting a check that makes a lot of money.” It is the taxpayers who are being held responsible for a broken and dysfunctional rail network. ”
Labor has said that if elected, it would return rail services to public ownership when the contract expires.
A spokeswoman for the Rail Delivery Group, which represents rail operators, said it had apologized to everyone affected and added: “We hope customers know how to claim compensation if a train is delayed or cancelled. We have taken steps to simplify this process. [Office of Rail and Road] Data confirms that 99.5% of all late compensation claims are completed within 20 business days.
“Rail performance is not as good as expected. The rail industry is working hard to improve train reliability and is recruiting and training new staff to increase resilience.”
