Flexible Rail Ticketing

Chris Heaton-Harris Excerpts

Tuesday 29th September 2020 Commons Chamber

[The Minister of State, Department for Transport (Chris Heaton-Harris)]

My right hon. Friend the Member for Tunbridge Wells (Greg Clark) is very kind but compliments sometimes, as I think a Canadian said, doth butter no parsnips.

I shall do my best to explain the Government’s position on this, but I first congratulate him on securing this debate on the plans for future flexible season tickets and rail ticketing, and I thank the hon. Members for Strangford (Jim Shannon) and for Canterbury (Rosie Duffield) and my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon), who have made contributions this evening.

Transport affects most, if not all, of the people in the Chamber today, and it is an area that the Government are committed to improving. Members present are all well aware that improving our rail network is at the heart of the Government’s plans to build back better and to boost Britain’s economy coming out of the pandemic. The Government are investing record levels in rail funding to deliver the biggest rail modernisation programme for over a century. In fact, we are spending £48 billion—a statistic I repeat ad nauseam to everybody I meet—between 2019 and 2024 to improve rail services for passengers and freight customers, while maintaining current high levels of safety and reliability.

My right hon. Friend the Member for Tunbridge Wells will also know that in the Prime Minister’s address of 22 September, he emphasised the importance of taking steps to stop the spread of the coronavirus. The Government encourage those who can work from home to do so, and we continue to advise passengers to consider active travel alternatives such as walking and cycling.

To ensure the safety of those who need to use public transport, we have issued comprehensive guidance on the steps that operators should take to access and address the risks of coronavirus in the transport sector across England. The rail industry has implemented measures to give passengers confidence in travelling by rail, from enhanced cleaning to redesigned station flows that facilitate social distancing wherever possible; and from the provision of additional staff and the installation of face covering vending machines at key stations to volunteers welcoming people to stations to remind them to wear their face coverings.

The Government also announced on 21 September that we have extended support to keep trains running through the pandemic and ended rail franchising. Emergency recovery measures agreements—or ERMAs, as they are more commonly known—place operators on far more demanding management agreements, with tougher performance targets and lower fees than the previous emergency measures agreements. Those fees are a maximum of 1.5% of the cost base of the franchise before the pandemic began. To help comply with current and changing public health guidance, we have also asked operators to run an almost full capacity service to ensure that there is space to help passengers travel safely, and socially distanced where possible, to continue to combat the threat of covid-19.

Looking forward to the post-covid recovery, we need to build a rail network that is fit for the future. To deliver this, we are placing some focus on punctuality and performance, investing massively in infrastructure to level up the country, and indeed considering how we can provide simpler, more flexible ticketing to deliver a better deal for passengers and one that works in the new environment that they will be travelling in.

Southeastern continues to deliver for passengers, recording 93.2% in the latest public performance measure of punctuality, with 83% of journeys rated as satisfactory or good in the national rail passenger survey in spring this year. It also offers a range of products that passengers can choose to buy to suit their own requirements. As my right hon. Friend said, Southeastern has a Key smartcard, which allows tickets to be downloaded from home through an app, but it does not offer, at this point, a flexible season ticket.

For the commuter, season tickets are still a great way to save on travel and they are available on the smartcard, as I said. It is worth someone buying a season ticket if they make the same journey three times a week or more. Early bird discounted season tickets are also available for early morning commuters travelling into London from some areas in Kent, providing even greater value for money.

My right hon. Friend will know that flexible season ticketing has long been an ambition of this Government. Progress has been made, with many train operators around the country having launched flexible products that can provide passengers who work or commute part time with a better deal, which is obviously important to this Government. The operators c2c, Chiltern Railways, East Midlands Railway, Gatwick Express, Greater Anglia, Northern, South Western Railway, Govia Thameslink Railway and West Midlands Railway are all offering some form of flexible season ticket or carnet on at least some of their services. However, as my right hon. Friend knows, flexible season tickets are not yet available across all train services, and the level of discount and terms and conditions of these tickets can vary between operators. I appreciate that the lack of availability of flexible season tickets might be frustrating for some passengers.

The pandemic has, of course, led to a lot fewer rail journeys being made. The Office for National Statistics reported that 32% of Great Britain’s working population are working at home for at least some of the time. The Government recognise, as everyone does, that the pandemic is likely to cause a fundamental change in commuting patterns in the future, and that is likely to have long-term effects on commuter behaviour.

[Greg Clark]

My hon. Friend read out a tantalising list of rail operators offering some form of flexible ticketing to commuters, but as he said, that is not available to Southeastern customers. Can he explain why?

[Chris Heaton-Harris]

I will happily explain why in a moment.

Fares and ticketing need to evolve to meet the needs of modern-day passengers, to support those people who want to work from home more often in the future and to provide a flexible and affordable ticket to allow commuters and others the freedom to travel into work when it suits them to discuss ideas in the office, grab a coffee with colleagues or socialise in our towns and cities.

To deliver that, we have been working proactively with the rail industry, including train operators and the Rail Delivery Group, to try to ensure better value and convenience for part-time and flexible commuters. In June, we sought proposals from the train operating companies, such as the one outlined by my right hon. Friend, and those were received by the Department over the summer. My officials are in the process of carefully considering the proposals, ensuring that they will offer value for money, give passengers what they want, be deliverable and work for the future. We will continue to consider these proposals, balancing better deals for passengers with the cost to taxpayers.

We obviously have to get the approval of Her Majesty’s Treasury for such a scheme. As a former Treasury Minister, my right hon. Friend will understand that the taxpayer is spending a tremendous sum of money on maintaining a rail service that is clean, reliable, resilient and allows people to travel, where possible, in a socially distanced manner. As Government guidance changes to reflect the situation we find ourselves in, the rail industry also has to change its plans.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

My hon. Friend makes a valuable point. Once a Treasury Minister, always a Treasury Minister, and the bill for the industry and for all the support being provided will have to be met. He gave a list—described by my right hon. Friend the Member for Tunbridge Wells as “tantalising”—of rail franchises operating a flexible system. The Harrogate line operates such a system through a carnet, where passengers can buy 10 tickets and pay for nine. The pattern of commuting will be fundamentally different after we recover from the coronavirus, so in planning for the long term, will this be built into franchises or whatever model we see when we return to a more normal mode of operation?

[Chris Heaton-Harris]

As a former rail Minister, my hon. Friend knows the lovely conversations that are had between Departments about these sorts of things. We are keen to introduce flexible ticketing throughout the system where possible, but it is quite difficult to judge what would be the right product to tempt commuters back to our railways before we know how we will extract ourselves from a second peak of the pandemic.

We know that there is much interest among passengers in these products, including from the representations that Members have made directly to the Department, but we need to look in detail at important and complex issues such as pricing, impacts on revenue and whether these proposals are properly future-proofed before launching them. We cannot say at this stage what the longer-term impact of the covid-19 pandemic will be on commuter behaviours, and we need to ensure that any steps we take now can flex and adapt to changing circumstances.

Of course, these are unusual and unprecedented circumstances and timing is extremely important. As I have said, we are currently advising office workers who can work effectively from home to do so. However, we also need to ensure that our rail network is ready to adapt and able to provide good value and convenient options for those now wishing to travel, and especially for those who wish to come back to our network in the future when they can, to help support the recovery of our town and city economies. We also know that there are still many people, such as our key workers, who rely on the trains to get to their place of work right now. That is why our immediate focus is ensuring that we keep the railway available and safe for those who require it, within the covid measures that I set out earlier.

We are talking to Southeastern in many ways, and I completely understand, as I am sure my right hon. Friend the Member for Tunbridge Wells does, how important the railway is for so many people in his constituency. He has highlighted the need for more flexible rail ticketing to cater to changed commuting patterns, and I reassure him and the House that we are actively working with the rail industry to develop proposals to meet that need and ensure that the railway is fit for the future. We want to ensure that we enable operators to offer the right range of tickets to improve the lives of commuters around the country, including those in my right hon. Friend’s constituency, and I hope that I will be able to come to the House at some point in the near future to update it on our progress.

Question put and agreed to.