Train Operating Companies: Finance

Department for Transport written question – answered at on 21 December 2022.

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Photo of Baroness Randerson Baroness Randerson Liberal Democrat Lords Spokesperson (Transport)

To ask His Majesty's Government what (1) incentives, and (2) conditions, they place in contracts with train operators to ensure they check tickets of all passengers in order to maximise revenue.

Photo of Baroness Vere of Norbiton Baroness Vere of Norbiton Parliamentary Under-Secretary (Department for Transport)

Rail contracts place obligations and performance payment incentives on train operating companies (TOCs) to monitor and deter ticketless travel.

TOC ticketless travel performance has been evaluated to date as part of the Financial Performance scorecard evaluation. The new National Rail Contracts enable ticketless travel targets to be agreed with TOCs and their performance against these will determine the performance-based fee they earn for revenue protection activity.

TOCs are expected to rigorously undertake ticket checks at gate lines and on train including issuing Penalty Fares and prosecuting fare evaders where appropriate. TOCs are required to undertake ticketless travel surveys to help identify areas where they need to take action. TOCs are also required through their annual Business Plan process to take forward initiatives to tackle ticketless travel.

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