Press releases

ORR and Network Rail agree new £4.1m ‘Rail Reparation Fund’ to directly benefit passengers

30 November 2015

Content archived on 28 March 2024

Archive date
02 July 2021
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The initiative comes as ORR publishes its assessment of Network Rail’s performance from April to October 2015.

In August, ORR determined that Network Rail had not delivered the reliability and punctuality needed to support Thameslink and Southern train services in 2014-15. ORR gave Network Rail an opportunity to put forward an offer of reparations to directly benefit passengers or face a £2m financial penalty.

Network Rail’s financial resources must be focussed on delivering improvements for passengers. We have accepted Network Rail’s offer, which is more than double the proposed fine, creating a ‘Rail Reparation Fund’ of £4.1m to improve services for affected passengers.

The Fund will help passengers by:

  • Increasing the number of staff at stations served by Thameslink, Southern and Gatwick Express, improving the flow of passengers and the efficiency of train departures thus reducing delays to services;
  • Employing more track workers to provide rapid response during disruptions; and
  • Introducing incident management software to help quickly resolve issues that occur on Network Rail’s South East route.
    ORR Chief Executive Richard Price said:
We welcome Network Rail’s commitment to improve passenger services.
The new Fund will enhance the service for passengers affected by this poor performance.
ORR’s latest analysis shows that Network Rail is working to improve the day-to-day performance on Britain’s rail network and its capability to deliver rail projects included in Sir Peter Hendy’s recent review.
ORR is working with Network Rail to ensure that its plans provide a sustainable basis for improvement for taxpayers, passengers and customers.

ORR’s latest Network Rail Monitor shows Network Rail is working to deliver improvement plans for better day-to-day performance on the railways as follows:

  • There is now strong performance on freight services, which are 1.8 percentage points above target. Network Rail has strengthened its approach to asset management, reducing the number of track faults (down 16.1% compared to last year) and signal failures (reduced by 7.9% compared to last year).
  • The company has continued to improve safety, and is meeting its level crossings closure targets and plans, with over 140 closed since April 2014.
  • Network Rail has improved renewals work in key areas, including track (plain line renewals are 4% ahead of plan) and overhead line (32% ahead of plan). The company is also working to catch-up on planned levels of work for renewals of signalling and civils (for example, bridges and earthworks).

However, plans for improving passenger services are yet to deliver expected benefits. The challenge for Network Rail is to identify why, despite the measures it has taken, performance is not improving quickly enough, and tackle the root causes.

To deliver Sir Peter Hendy’s recently published plan for enhancing the rail network by 2019, Network Rail must implement its enhancement capability improvement programme.

ORR will hold Network Rail to account for delivering the improvements needed, ensuring the plan is fit for purpose and put into practice. It is a significant and long-term challenge for the company to integrate and embed the improvements into its regular business, but they are essential to protect the investment being funded by taxpayers, passengers and customers.

Notes to editors

  • The Office of Rail and Road is the independent economic and safety rail regulator and the independent strategic roads monitor for England.
  • Network Rail’s performance in respect of passenger services on Thameslink and Southern, were below expectations and missed punctuality targets. Thameslink and Southern combined represented a third of delays and nearly half of cancelled and significantly delayed services in England and Wales in 2014-15. For further information on ORR’s investigation: https://orr.gov.uk/news-and-media/press-releases/2015/orr-investigation-finds-network-rail-in-breach-of-licence-in-2014-15
  • ORR will be monitoring the implementation and delivery of the Rail Reparation Fund.
  • Network Rail has committed to review the station and customer management elements of the Fund and provide further funding for these schemes if sustainable improvements can be delivered.
  • Network Rail has implemented new plans, and ORR's nine recommendations for engineering works, to minimise impact on passengers following the disruptions after last year’s works. ORR takes a proactive approach in reviewing the company’s plans ahead of major possessions, including carrying out ‘readiness reviews’ to test preparation and contingency arrangements. We are currently looking at the plans for this Christmas.

Follow @railregulation and @highwaysmonitor to keep updated on ORR's work.