Passengers on delayed trains to get automated refunds for first time
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Version 0 of 1. A system to automatically compensate passengers whose train is delayed is to be introduced for the first time on the national rail network. Virgin Trains will automatically refund part or all of the fare to passengers who experience delays of more than half an hour on pre-booked West Coast trains in a move that the government hopes will be replicated across the industry. Train operators have been criticised in the past by unions and rail user groups for not passing on compensation payments they receive from Network Rail for most long-distance delays. Virgin had the second-worst ratio of late trains of any operator, with a quarter of Virgin’s West Coast services at least five minutes behind schedule, and the company’s east and west coast mainline services attracted the most complaints of any operator, according to figures released by the Office of Rail and Road. Related: West coast mainline: Virgin Trains and Stagecoach are expected to triple profits Virgin estimates the new scheme will more than triple the money it pays out to passengers on the mainline between London, Birmingham, Manchester, Liverpool and Glasgow. The automatic delay repay system can only work for advance tickets bought through the Virgin app or website, to verify details of the journey and credit card, and will not yet work on Virgin’s East Coast trains. All passengers can still claim compensation in the traditional way, using an application form, but many do not make claims to which they are entitled. Based on the current pattern of delays and number of advance tickets it sells, Virgin said it would pay out an estimated £3.8m next year with the automated system, instead of £1m. Some automatic refunds are already paid by Transport for London, which can pay out to passengers with registered Oyster cards or contactless payment cards affected by mass delays on the tube or London Overground, but Virgin is the first national operator to introduce such a system. The transport secretary, Patrick McLoughlin, said it was fantastic news for West Coast passengers, adding: “Virgin Trains are making the most of modern technology to improve the service customers get. Our plan is to make sure passengers across the country benefit from schemes like this and we are encouraging other operators to roll out similar schemes nationwide.” Mike Hewitson, head of policy at the independent watchdog Transport Focus, said: “This is a great step forward and we would like to see this system introduced across all operators and ticket types.” However, until a network-wide scheme is introduced, even Virgin passengers may have to claim in a traditional way. A journey with connections across different train operators will not be eligible for automatic refunds. But Virgin said 13.5m journeys a year would potentially be covered. A delay of more than 30 minutes will see half the fare for that single journey refunded, while more than an hour will deliver a full refund. About 5% of Virgin’s trains were either cancelled, late by more than 30 minutes or failed to make a scheduled stop in the past 12 months, according to Network Rail figures, although the majority of delays were caused by factors not attributed to Virgin. Network Rail paid a net £105m to train operators for disruption and delays last year, including £15m to Virgin. |