Franchise agreements suspended to stop rail operators collapsing

Operators will be paid a small management fee to run services, with all revenue and cost risk transferred to the Government.

The emergency measures will be in place for an initial period of six months.

The DfT said they will “minimise disruption to the rail sector”.

Allowing operators to enter insolvency would cause “significantly more disruption to passengers and higher costs to the taxpayer”, the department added.

The DfT said passenger numbers have fallen by up to 70%, while ticket sales are down by two-thirds.

Rail timetables have been slashed because of Covid-19.

Anyone holding an Advance ticket will be able to get a refund free of charge, while administrative fees have been waived for season ticket refunds.

Transport Secretary Grant Shapps said: “We are taking this action to protect the key workers who depend on our railways to carry on their vital roles, the hardworking commuters who have radically altered their lives to combat the spread of coronavirus, and the frontline rail staff who are keeping the country moving.

“People deserve certainty that the services they need will run or that their job is not at risk in these unprecedented times.

“We are also helping passengers get refunds on Advance tickets to ensure no-one is unfairly out of pocket for doing the right thing.

“These offers will give operators the confidence and certainty so they can play their part in the national interest.”