Government helps rail operators by taking on running costs for six months

Ministers on Monday stepped in to shield UK rail operators including FirstGroup and Go-Ahead from the Covid-19 crisis by taking on the costs of running services for six months.

The Department of Transport has introduced new measures which will temporarily suspend franchise agreements on the railways.

The Government will pick up the bill for the loss of passenger revenues and costs of running services, giving train operators some more breathing space. Operators will also be paid a small management fee to continue running services.

FirstGroup welcomed the move. “These measures provide continuity and certainty for all of the group’s rail franchises,” it said. Passenger volumes in its rail business have collapsed by 90% in the past few days. Go-Ahead has already moved to weekend schedules across the network.

FirstGroup, Go-Ahead and also Stagecoach all issued statements today saying they were currently unable to provide guidance for current financial years.