Train Operating Companies: Finance
The question
To ask the Secretary of State for Transport, with reference to her Department's Main Estimate 2025-26, whether the forecast £464.6 million reduction in net subsidy to Train Operating Companies relative to 2024-25 will be achieved; and what contingency plans are in place should passenger revenue fall below forecast levels.
Answered by Keir Mather
The 2025-26 final outturn for Support for Passenger Rail Services was £2,159.2 million. This represented an actual reduction of £399.1 million, which is 86 per cent of the forecast £464.6 million reduction. The outturn was fully funded from within the Department’s overall funding limits.
The rail passenger service subsidy funding is set on a net basis, including both costs and revenue. Changes are addressed through regular forecasting and business planning processes. Mitigations to address any overall subsidy pressure may include a range of options to drive revenue and manage costs, depending on the overall train operator’s portfolio position, the specific circumstances at the time, and the long-term implications and the size of the challenge.
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