Train operators have paid out a record £128 million in compensation to passengers for delays to their journeys in the past year.
The long distance operators LNER and Avanti were the worst offenders, with each paying just over £32 million in the 12 months to the end of April.
The largest number of claims was paid by GWR, which operates routes including London Paddington to Bristol Temple Meads and Swansea. It had a bill of £28.7 million for more than 1.2 million delayed passenger journeys.
Most of the train operators run “delay repay” compensation schemes. Passengers are eligible whatever the cause of the disruption, whether is the fault of the train operator, Network Rail or extreme weather.
While many believe the “delay repay” compensation is paid by the train operators who, with Network Rail, are responsible for the delays, it is actually met by the taxpayer. This is because since the start of the pandemic more than four years ago, services have in effect been run by the state. Private operators are paid a management fee for running services, and must meet detailed targets set by the Department for Transport. They receive little additional incentive for improving their service.
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In contrast, airlines can brush off claims for much longer delays if they can demonstrate that the problem was caused by the airport, air traffic control or other factors such as bad weather or a bird striking an aircraft.
Typically, rail passengers are entitled to 25 per cent of the cost of a single ticket if the arrival at their destination is delayed by between 15 minutes and 29 minutes, rising to 50 per cent for delays of between 30 and 59 minutes. There is a full refund on a single ticket if the delay is more than an hour. If it is longer than two hours, the passenger can claim back the full cost of a return ticket.
Last autumn, the average punctuality on all train networks was 81.4 per cent, which means they arrive at their final destination within five or ten minutes of the scheduled arrival time, according to official figures from the Office of Rail and Road watchdog.
If Labour wins the general election, it says train operators would be steadily nationalised within five years by allowing their contracts to expire. The party has not disclosed details of how this will work.
The “delay repay” system treats rail passengers much better than air passengers, with many operators offering a one-click compensation system for those who booked directly with them. A remarkable 99.5 per cent of claims are resolved within 20 working days and typically more than 80 per cent of claims are upheld. No payment is made if a train is cancelled by 10pm on the day before departure.
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Passengers who have bought a ticket via the Trainline app must apply to the train operator for a refund. The online booking service is not allowed to process the payment, and issues refunds only for passengers who decide not to travel on their ticket or if the train is cancelled. A handling fee of up to £5 is charged if a passenger decides not to travel.
Figures from Network Rail show that a third of delays are caused by the operators for failings such as defective trains, a lack of staff or delays from one operator creating knock-on effects on another.
Not everybody asks for compensation. A recent Department for Transport survey found a quarter of eligible passengers were unaware that they could claim.
Norman Baker, a former rail minister, said: “If the responsibility for the delay is with the train company, then the money for the passenger should come from the train company’s management fee rather than from the taxpayer. They should have an incentive to make sure the train runs on time.”
Andy Bagnall, chief executive of Rail Partners, which represents the private rail operators, said: “Increasing compensation levels reflect declining performance across both Network Rail and train operators, including those currently run by the government. This underlines the urgent need for rail reform to create a new public body to oversee the railway, but also to restore commercial freedoms and incentives to private operators to improve performance and attract customers back to rail.”
