Select Committee · Public Accounts Committee

Rail reform: The rail transformation programme

Status: Closed Opened: 22 Mar 2024 Closed: 29 May 2024 9 recommendations 15 conclusions 1 report

The Department for Transport (DfT) set out its plan to transform the way the rail system works in May 2021, in response to significant disruption to passengers in May 2018 following a failed introduction of a new timetable. The creation of Great British Railways (GBR) was proposed, a new organisation with responsibility for the whole …

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Reports

1 report
Title HC No. Published Items Response
Thirty-Eighth Report - Rail reform: The rail transformation… HC 652 27 May 2024 24 Responded

Recommendations & Conclusions

11 items
2 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Develop a passenger-focused plan and resolve disincentives for sustainable rail subsidies.

There has been too little focus on passengers and taxpayers and how to get them a better deal. The Department claims that improving passenger experience is at the heart of its reform plans, but poor performance persists across the rail network. In 2022–23, 13.7% of trains were delayed and 3.8% …

Government response. The government agrees and commits to delivering the Great British Railways (GBR) model within this parliamentary term, which it states will address disincentives and aims to improve passenger services and financial sustainability. Interim actions include using annual business planning, resolving …
HM Treasury
3 Conclusion Thirty-Eighth Report - Rail reform: The… Accepted

Accelerate improvements to rail network accessibility for all passengers, including station facilities and train services.

It is unacceptable that so much of the rail network remains so difficult to access for so many people. The Department committed to improving access to the rail 6 Rail reform: The rail transformation programme network and other modes of transport as part of its 2018 inclusive transport strategy and …

Government response. The government agrees and commits to setting out next steps as soon as possible for improving rail accessibility, continuing the Access for All programme, and using accessibility audit data for all 2,575 stations to improve information and target future investment …
HM Treasury
4 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Implement tangible rail reforms to improve passenger outcomes and deliver savings for taxpayers.

We are not convinced that the Department has paid sufficient attention, in advance of the delayed creation of Great British Railways, to the changes it can make now to improve the situation for passengers and taxpayers. The Department expected its reform programme to result in annual savings of £1.5 billion. …

Government response. The government agrees and states it has already implemented the recommendation by delivering various reforms including rolling out barcode ticketing, expanding contactless PAYG, piloting PAYG in new regions, setting a rail freight target, and launching a rail sale. It remains …
HM Treasury
1 Conclusion Thirty-Eighth Report - Rail reform: The… Accepted

Committee took evidence on rail reform from Department for Transport and Network Rail.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department) and Network Rail, in its capacity as lead for the Great British Railways Transition Team (GBRTT), about rail reform.1

Government response. The government outlines its ongoing actions on rail reform, including introducing legislation to bring passenger services into public ownership, announcing further legislation to create Great British Railways, and preparing for the mobilisation of a shadow GBR.
HM Treasury
8 Conclusion Thirty-Eighth Report - Rail reform: The… Accepted

Rail sector performance remains inadequate, with unacceptable levels of train cancellations and delays.

The rail sector’s performance for passengers and the taxpayer is not good enough and has not been for some time.13 The Office of Rail and Road reported 3.8% of trains were classified as cancelled in 2022–23, along with 86.3% of trains arriving at their final destination on time, meaning that …

Government response. The government states that train operators' performance is already monitored across a range of operational and service quality measures and that each operator is contractually required to set out their commitments to passengers, including arrangements for delay compensation.
HM Treasury
11 Conclusion Thirty-Eighth Report - Rail reform: The… Accepted

Risk of cutting passenger services due to cost focus, reducing revenue and customer experience.

Rail Partners highlighted to us the risk that the Department may look to cut passenger services to save costs which would make the railway less attractive for passengers, mean lower revenues flowing into HM Treasury, and add to cost pressures. It said that it is essential to reunite cost and …

Government response. The government agrees with the Committee’s recommendation to reunite cost and revenue and is committed to delivering a unified and simplified governance structure for the railways, alongside passenger train services under public ownership. Implementation is targeted for Spring 2025.
HM Treasury
14 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Inconsistent staff availability and inadequate rail infrastructure negatively impact diverse passenger groups.

We highlighted our concerns about the impact of the Department’s lack of progress in improving rail services and station infrastructure on various groups of people. For example, disabled passengers, as well as parents with young children, and even the many passengers and tourists carrying luggage who would like to use …

Government response. The government agrees and will continue to support the access for all programme, using accessibility audit data of rail stations to improve passenger information and target future investment decisions.
HM Treasury
15 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Department's rail reform activity significantly reduced, focusing on short-term gains rather than comprehensive change.

The Department’s scale of activity compared to its initial reform programme is much reduced. Its focus is on three types of work: short-term benefits it can achieve without legislation; promoting greater collaboration and culture change within the rail sector; and continuing some work on the future end state for reform.31 …

Government response. The government agrees and lists progress made prior to the 2024 General Election, including barcode ticketing and LNER initiatives, and says it is focused on delivering benefits for passengers and taxpayers ahead of legislation to establish GBR. It also mentions …
HM Treasury
17 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Department's focus on minor improvements overlooks passengers' primary concerns about reliability and punctuality.

We asked the Department what we can expect to see within the next six months that will make a difference and improve the passenger experience. The Department provided examples such as the Great British Rail sales, roll out and trialling of more pay-as-you- go technology for customers in various parts …

Government response. The government agrees and lists progress made prior to the 2024 General Election, including barcode ticketing and LNER initiatives, and says it is focused on delivering benefits for passengers and taxpayers ahead of legislation to establish GBR. It also mentions …
HM Treasury
19 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Significant disagreements persist between the Department and HM Treasury regarding GBR's remit and future commercial model.

We asked the Department about the challenges presented by not having agreement with HM Treasury from the outset of the programme about some of these aspects. The Department told us that the white paper had the collective agreement of ministers and set the broad direction and detail for some areas …

Government response. The government will work closely with HM Treasury on defining the role, function and oversight of Great British Railways to ensure the railway is financially sustainable and will set out further information on plans for legislation as soon as is …
HM Treasury
23 Recommendation Thirty-Eighth Report - Rail reform: The… Accepted

Department's routine engagement with rail unions remains insufficient at official level.

Good policy is made through involving stakeholders. We asked about the Department’s engagement with the workforce and how it understands the practical realities and challenges facing those responsible for implementing policy on the ground. The Department told us that when its officials supported the Williams Review, they consulted very widely …

Government response. The government is resetting the relationship with the trade unions, has made a proposal to ASLEF, and believes that working in partnership with the workforce is essential for long-lasting reform.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
29 Apr 2024 Andrew Haines · Network Rail, Anit Chandarana · Department for Transport, Conrad Bailey · Department for Transport, Dame Bernadette Kelly DCB · Department for Transport View ↗

Correspondence

3 letters
DateDirectionTitle
22 May 2024 Correspondence from Dame Bernadette Kelly DCB, Permanent Secretary, Department …
14 May 2024 Correspondence from Dame Bernadette Kelly, Permanent Secretary, Department for …
14 May 2024 Correspondence from Dame Bernadette Kelly, Permanent Secretary, Department for …