Question to the Department for Transport:

To ask the Secretary of State for Transport, what (a) agreement and (b) provision for pension liability risk was agreed between the Department for Transport and First Group when an extension to the Great Western rail franchise was announced on 29th November 2017.

The extension to the Great Western rail franchise announced in November 2017 involved the Secretary of State simply exercising his contractual right to extend the existing contract, on the same terms as agreed in 2015. As in all other Franchise Agreements, the Franchisee (as the Designated Employer) is responsible for paying employer pension contributions required under the schedule of contributions applicable during their franchise term. In the Great Western Railway franchise agreement, the Franchisee and its employees bear all risks associated with changes in pension contributions.