Question to the Department for Transport:

To ask the Secretary of State for Transport, what estimate he has made of the proportion of the profit accrued by train operating companies from schedule 8 payments; and if he will make a statement.

Schedule 8 of the Track Access Agreement between Network Rail and train operating companies (TOCs) sets out the process for compensating TOCs for the impact of unplanned service disruption where they are not at fault. The process is calibrated to compensate TOCs for their revenue lost and their additional costs incurred resulting from unplanned service disruption. Unplanned disruption often leads to TOCs having to incur many additional costs, including the cost of compensation to passengers, replacement bus/taxi costs, staff overtime and administration costs. It also often leads to TOCs receiving lower revenue due to passenger refunds and fewer passengers choosing to travel on the day of disruption and also in future. As such, payments under Schedule 8 are designed to prevent the TOCs making losses as a result of their extra costs and reduction in revenue, leaving the TOC financially neutral as a result of the disruption.