The train companies pocket millions in compensation for delays
Only one third of eligible passengers obtain a payout for delays and cancellations
Here’s a shocking fact for those of you who (like me) shivered on freezing platforms when their train was cancelled or delayed over the so-called festive period. The train operating companies can actually make a nice little profit out of your distress, so they have almost no incentive to improve the service.
As you get ready to fork out £5,000-plus for an annual season ticket on a 40-mile journey into work on a train built 30 years ago, which arrives at your destination on time approximately every solar eclipse, consider this: train operators receive a “schedule 8” payment from Network Rail when something goes wrong with the infrastructure, such as a points failure. It is designed to compensate them for the impact of poor performance on their revenue. It is estimated that last year train operators picked up £107m from Network Rail for delays. But how much was paid out to the customers who were the victims of these problems? Just £26m. It means the train operating companies profited by some £81m because something went wrong.
Source: Guardian Transport