Rail firms probed over delay payouts

The Office of Rail Regulation (ORR) yesterday said it wants to make sure compensation issues function effectively and does not disadvantage passengers or freight customers.

The ORR is also studying passenger awareness of their own compensation rights on questions such as how long they need to be delayed on a journey before they can reclaim their fare.

The Transport Salaried Staffs Association welcomed the revelation, following its claim last month that less than 10 per cent of £184m paid to private firms by NR for delays last year found its way back to passengers.

General secretary Manuel Cortes said: “The present compensation scheme is little more than licensed larceny by the private train operators.”

A spokesman for the Association of Train Operating Companies claimed that the union had got its facts wrong.

He added: “...passenger compensation has become increasingly generous and easy to apply for.

“As a general principle, train companies will refund anyone who has bought a ticket for a journey that is cancelled. The vast majority of operators compensate passengers who have been delayed for an hour or more.”