Rail Franchising Scrapped After 24 Years in Major Shake-Up
Ministers have pulled the plug on rail franchising after 24 years, marking the start of a bold plan to reunite Britain’s fractured rail network. The old system is out, replaced today by a transitional setup aimed at simplifying and improving Britain’s railways.
Emergency Recovery Management Agreements Take Over
From this morning, the outdated franchising model has been swapped for new Emergency Recovery Management Agreements (ERMAs). These contracts come with tougher performance targets and leaner management fees capped at just 1.5% of pre-pandemic franchise costs. The ERMAs tackle pandemic fallout and set the stage for long-awaited rail reform.
Operators must now work closer together and slash bloated capital costs, promising passengers a smoother, more reliable service. Under current health advice, trains will run near full capacity to help travellers stay safe.
Big Rail Reform on the Horizon
ERMAs are just the first step. They pave the way for a major rail white paper, based on recommendations from Royal Mail boss Keith Williams. His 2018 review followed chaos from failed franchises and timetable disasters. The government says the white paper will respond fully once the pandemic’s path is clearer.
Ministers Promise Passenger-Focused Railways
Transport Secretary Grant Shapps said:
“The privatisation model, launched 25 years ago, boosted passenger numbers but is now failing us. Our new deal demands more for passengers—simplifying journeys and ending confusion over tickets and train companies.
We’ll keep the best of private-sector investment and competition but add clear leadership and accountability. Passengers deserve reliable, safe services on a network built around them. It’s time to get Britain back on track.”
The government admits taxpayers will still be footing the bill until passenger numbers bounce back, but hopes reforms will save money in the medium to long term.
Keith Williams added:
“These new agreements end the complicated franchising system, demanding more from private sector skills to deliver a punctual, coordinated railway.
I’m making sure these plans fit a post-COVID world. These contracts kickstart reform that puts passengers at the centre with a simpler, better system.”
