Question to the Department for Transport:

To ask His Majesty's Government, further to the Written Answer by Lord Davies of Gower on 6 March (HL2702), whether any proportion of the costs of the Delay Repay scheme have resulted in a direct cost to public funds; and if so, how much.

At the onset of the COVID-19 pandemic, when revenues dropped very significantly, the Government introduced emergency agreements that transferred day-to-day revenue and cost risks to the Department. These agreements protected services that key workers depended on. Under the agreements, the Government effectively receives the revenue and pays an operator’s reasonable costs, subject to the revenue incentive mechanism introduced recently to encourage operators to grow patronage and revenues.

Operators are compensated by the Government for all reasonable costs incurred that are accumulated in accordance with the terms of the contract, including those in relation to Delay Repay.

Payments made to rail passengers for Delay Repay as well as discretionary compensation are published annually, and for 2022-23 totalled £101 million.