New rail franchises proposed to deliver better passenger services

Franchises will be individually tailored to fit the diversity of different parts of the rail network

A major shake up of the rail franchising system has been proposed, which will deliver better outcomes for passengers and better value for taxpayers' money.

The government proposes to set tough outcomes for train operators to achieve but to give them more flexibility on how best to deliver them.

Franchises will be individually tailored to fit the diversity of different parts of the rail network, but binding obligations on service quality and tackling overcrowding are likely to form part of the government’s new approach on commuter franchises.

Franchises will also be longer, normally for around 15 years, to incentivise bidders to invest in the railways. The reform will provide better incentives for operators to invest in service improvements.

Operators will get more flexibility over the services they run but the government will continue to mandate the provision of core levels of service.

The Department for Transport is also exploring options for measuring operators' performance against 'service quality' standards, based on passenger satisfaction data and 'mystery shopper' visits.

More stations will be passed from Network Rail control to train operators as the customer-facing part of the rail industry with the strongest incentive to respond to passenger concerns.

The franchise is proposed to last for at least 14 years.

Rail Minister Theresa Villiers said: "We will protect the passenger by setting demanding outcomes for operators to achieve, but we will give more space to the professionals who run our railways to innovate and decide on the best way to achieve those outcomes."

"We believe that will ensure the rail industry is able to respond more quickly and flexibly to changing passenger concerns."

Further information:
Department for Transport