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23 March 2020

DfT offers train operators with government franchise agreements new agreements which transfer all revenue and cost risk to the government

Sub-theme: Transport

Introduced by

Department for Transport

Targeted at

Train operators


Introduced immediately. New agreements to cover initial period of 6 months

Stated aims

To ensure that vital services continue to operate for key workers and that we are able to reinstate a normal service quickly when the situation improves


This is the announcement that train operators on franchises let by the Department of Transport (DfT) can temporarily transition onto Emergency Measures Agreements. These agreements will suspend the normal financial mechanisms of franchise agreements, transferring all revenue and cost risk to the government. Operators will continue to run day-to-day services for a small, predetermined management fee. Companies entering into these agreements will see a temporary suspension of their existing franchise agreement’s financial mechanisms for an initial period of 6 months, with options for further extension or earlier cancellation as agreed.


Gov.uk written statement to parliament