London (Parliament News) – Compensation for UK train delays hits £100m annually, with payouts doubling in a year. Rising claims indicate ongoing rail troubles, prompting calls for systemic reform and Labour advocates for public ownership.
Compensation disbursed to passengers for train delays in Britain has achieved record levels, with annual payouts reaching £100m and the number of claims for postponed or cancelled trains persisting to grow. Payouts to passengers for disrupted journeys arrived at £101.3m in the year to April 2023 – an increase of 155% from £39m in 2021-22.
According to the Guardian, the latest official data from the rail regulator, the Office of Rail and Road, presents the financial hit is likely to be much more elevated again in 2023-24. The number of endorsed claims recorded across all train operators in Britain until early January – 4.6m – surpassed the previous year’s tally with several months remaining.
How do rail disruptions affect compensation claims?
While the compensation total partly mirrors a rebound in train travel after the Covid problem, the growing figures far outstrip the 40% rise in passenger numbers. Almost 320,000 train services were withdrawn or part cancelled in the past year in Britain. Strikes, staff deficiencies, damaged rail infrastructure and mechanical losses on trains all contributed to a year of trouble and delayed journeys across the railway.
Who bears the financial burden of delays?
Labour said it indicated that the taxpayer was “carrying the can” for worsening rail services. Though wholesale rail reform has been pledged, under current arrangements the compensation bill is financed by the taxpayer, with the government spending operators a management fee regardless of performance and carrying the cost of lost revenue.
The payouts for delays only surrounded scheduled services, with trains that have been released from the timetable usually not drawing compensation – a policy that has attracted huge criticism on lines such as Avanti West Coast and TransPennine Express.
How has the industry improved response times?
The growing bill partly echoes increasing automated payouts, with some train operators now giving refunds immediately to passengers who have reserved advance journeys through their websites, or to registered season ticket holders during disruption. The industry has also enhanced its response to objections with more than 99% of claims resolved within 20 days.
What is Labour’s stance on rail operations?
Labour expressed some of the worst operators for revocations were being rewarded for failure, with CrossCountry and Avanti West Coast’s parent groups paying out millions to shareholders, and being granted contract extensions by ministers last year.
The shadow transport secretary, Louise Haigh, stated: “Thanks to this government, it makes no difference to the management fee private rail operators receive if services are delayed or cancelled – they pick up a lucrative, publicly funded cheque regardless. It is the taxpayer forced to carry the can for our broken, dysfunctional rail network.” Labour has expressed, if elected, it will bring train operations back into public ownership as contracts expire.