Network Rail slashes compensation payouts to customers by £97m

Revenue increased by £610m in the six months to the end of September.

August Graham
Friday 15 December 2023 10:20 GMT
Network Rail said its costs have increased (Network Rail/PA)
Network Rail said its costs have increased (Network Rail/PA) (PA Media)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The company that manages Britain’s railways has said it was responsible for fewer delays in the six months to September, saving it around £97 million.

Network Rail said its revenue increased by £610 million in the half-year period, largely because of inflation-linked price rises.

The increase in charges added £229 million to the company’s revenue, which hit £5.3 billion.

But the business also said a reduction in the compensation it paid to customers because of fewer delays and cancellations attributed to Network Rail boosted revenue by £97 million.

The company said its operating costs increased £398 million to £3.8 billion in the six months, with the largest contributor to this being a £137 million rise in its energy bills.

It saw its pre-tax loss narrow significantly from £980 million a year earlier to £82 million in the most recent period. Most of the loss was due to how the company valued some of its bonds.

A spokesman said: “Whilst Network Rail reached a settlement with its employees last March, train performance overall continues to be impacted by industrial action by train crews and drivers.

“This continues to hamper rail recovery.

“Nevertheless, passenger numbers increased by around 19% year on year to around 89% of the pre-Covid levels.”

Network Rail revealed that the value of Britain’s railway network increased from £82.7 billion at the end of March to £88.6 billion at the end of September.

The company has been trying to slash its costs by around £4 billion.

“The impact of inflation, tight public finances and the need to invest more to manage the impact of more frequent extreme weather on the infrastructure means that our funding will need to go further than ever before,” it said.

“We are committed to delivering extensive investments across the length and breadth of the network.

“In addition to improvements to safety, we’ll work to boost train performance, usher in new technologies, invest significantly more funds to tackle climate change as well as make £3.6 billion of efficiency savings.”

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in