Payments to Train Operating Companies

Baroness Randerson Excerpts

Tuesday 15th March 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

Safety is, of course, the priority for everybody who works in the railways, and the tragedy at Stonehaven is deeply regrettable. The Government have no intention of diminishing the work we do on safety and maintenance—it is extremely important—but we must look for efficiencies within the system, because we have seen this significant reduction in demand, we must make sure that we protect the taxpayers’ investment, and that is what we are doing.

[Baroness Randerson (LD)]

My Lords, as other noble Lords have mentioned, the 3.8% increase in rail fares simply adds to the financial pressure on families at this difficult time. Does the Minister accept that, now that the Government have ended the franchise system, with revenue from fares going straight to the Treasury, it is entirely in the Government’s hands what policy they choose to use in future to attract passengers back on to the railways? Does she accept that, for environmental reasons, it is essential that lower fares are used to attract passengers?

[Baroness Vere of Norbiton (Con)]

Of course we would like to keep fares as low as possible, but we also need to support crucial investment and pave the way for financial sustainability for the system as a whole. When we took the decision on regulated fares, we looked at inflation and chose to peg it to July’s RPI, which resulted in an increase of 3.8%. Of course, it could have been much higher had we used an RPI from a later month. We also delayed the introduction of the increase by two months, which was particularly beneficial for those buying annual season tickets. There are other ways we can encourage people back to the trains, and we are doing as much as we can, working with the train operators. For example, the Book with Confidence intervention was extended to 31 March. That allows customers to rebook their tickets if they are unable to travel, without administration fees.