Leading consumer group Which? has launched a ‘super complaint’ to the Office of Rail and Road (ORR) over the state of passenger compensation in the rail sector.
Latest figures show in 2014/15 an estimated 47m passenger journeys made on franchised services that were cancelled or significantly late.
Yet according to a Which? survey of almost 7,000 passengers, only a third of those who may have been entitled to compensation made a claim and only 36% of those surveyed were informed of their rights after their last delayed service.
Richard Lloyd, executive director at Which?, said: 'Current proposals to improve compensation for passengers are too far down the track. Even if an automatic compensation system was included in all new franchises from tomorrow, it would take until at least 2025 to cover the whole network.
'Millions of passengers are left out of pocket each year, so train companies must do more to put their passengers first and make rail refunds easier.'
On the grounds that the current system is ‘significantly harming interests of consumers’ Which? has asked the ORR to launch an investigation into the following:
- the extent to which TOCs are contributing to a low proportion of passengers securing their rights to compensation from delays
- the drivers of TOC behaviour and the pervasiveness of these drivers in the sector
- changes that are needed in regulation, and ultimately by train operating companies (TOCs), to ensure that passengers are aware of and are able to secure their rights to compensation
It called for the ORR to introduce new conditions into all its licensing for TOCs, requiring them to raise awareness of passenger compensation rights. This is already happening in some of the latest franchise arrangements.
Which? also suggests compensation for train companies, when services are delayed by the work of Network Rail or other operators, could be linked to the amount the service provider passes on in compensation.
David Sidebottom, a director at passenger watchdog Transport Focus, said: 'Our original research showed that less than 15% of passengers entitled to compensation for poor performance actually claimed.'
The ORR released a statement saying: 'The industry has recently taken positive steps – such as signing up to a Code of Practice on providing clear information to passengers when they buy rail tickets, which includes their compensation rights.
'We will be assessing whether more could and should be done for passengers as we investigate this complaint.'
Which?’s super complaint grounds:
- most delayed passengers do not apply for or receive the compensation to which they are entitled harming the interests of consumers and softening incentives to improve performance across the system,
- features of passenger rail markets including conduct by TOCs and the limited competition to franchised operators on many lines contribute to these effects
Which? claims evidence suggests:
- TOCs do not take sufficient steps to make sure passengers are aware of their compensation rights when they are delayed
- There are unnecessary complexities in consumer’s rights to compensation and the processes for claiming and receiving compensation act as barriers to consumers accessing it.
