Payments to Train Operating Companies

Lord Snape Excerpts

Tuesday 15th March 2022 Lords Chamber

Asked by

[Lord Snape]

To ask Her Majesty’s Government what estimate they have made of the impact on train services of a 10 per cent reduction in payments from the Department for Transport to train operating companies.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, the department has no plans to reduce payments to train operating companies by 10% and has not assessed the impact such a reduction would have on train services. As noble Lords would expect, we have asked operators to provide credible, efficient and sustainable business plans which will deliver reliable and resilient train services that adapt to passengers’ evolving needs and drive value for taxpayers.

[Lord Snape (Lab)]

My Lords, will the Minister accept that the twin attacks of a 3.8% increase in rail fares, the highest in almost a decade, together with any reduction in subsidies—I would still like to know exactly how much the Government are prepared to put forward towards our rail industry in the next financial year—will lead to reduced numbers of passengers travelling by train and more congestion and pollution on our roads? Surely that is not the way forward as regards the Government’s carbon reduction targets.

[Baroness Vere of Norbiton (Con)]

The Government are very focused on making sure that the services we provide for passengers meet their needs. Ridership at the current time is around just under two-thirds of what it was pre-pandemic. There may have been substantial and enduring change, so we are working with the train operating companies, asking them to look very carefully at timetables, remove duplications where possible and look for savings and efficiencies. At the end of the day, we need to provide services that meet passengers’ needs, and they need to be punctual and reliable.