Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps he has taken to ensure that the terms of the covid-19 emergency management arrangements with train operating companies do not financially benefit those organisations compared with their franchise agreements prior to the covid-19 lockdown.

The Emergency Measures Agreements (EMAs) temporarily suspend the existing franchise agreements' financial mechanisms for an initial period of six months. They were developed at an early stage of the covid-19 crisis as a bespoke solution to address the particular circumstances of rail franchises. These include the fact that the government would face large and direct financial exposure via its obligations under the Railways Act if any franchise were to fail financially and become unable to operate its services. The EMAs include explicit provisions to prevent 'double recovery', ensuring franchisees cannot be compensated through the EMAs where funding from other government support schemes has been obtained.

Operators are required to continue to fulfil their obligations under the EMAs for a small, pre-determined management fee. Fees are set at a maximum of 2 per cent of the cost base of the franchise before the Covid-19 pandemic began, intended to incentivise operators to meet reliability, punctuality and other targets.