HomePeopleEventsIndustry counts the cost of COVID-19 in 2020-2021

Industry counts the cost of COVID-19 in 2020-2021

WEEKLY NEWSLETTER SIGN UP

The Office of Rail and Road (ORR) has looked at the impact of the pandemic on rail, and issued the results in a report.

The headline is that the industry needed £20.7 billion to keep running. Thanks to historic lows in passenger numbers, however, that meant travellers covered just £2.5 billion. The UK Government contributed £16.9 billon and ”other sources” £1.3 billion.

Fares only contributed £1.8 billion from this passenger figure. That is a drop of £8.6 billion from the year before, and reflects a passenger reduction of 77 per cent.

Accordingly, the government increased its contribution by £10.4 billion to £16.9. This figure was largely due to the use of emergency measures to support passenger train operators.

Industry expenditure went up by £0.8 billion. The ORR says the rail industry ran 20.9 per cent fewer services which meant that variable expenditure, such as fuel, Network Rail charges and others reduced. The pandemic also increased expenditure in some areas such as the cost of Personal Protective Equipment (PPE), additional cleaning costs and staff absences.

One interesting figure is how much was spent on infrastructure improvements and rolling stock – a somewhat robust £5.6 billion, 4.9 per cent up from the previous year.

There is a silver lining: in the first quarter of 2021-22 (April to June 2021) 182 million rail passenger journeys were made in Great Britain, more than five times the 35 million journeys made in the same period of 2020-21.

Passenger revenue has also started to go back up, as you might expect: £999 million in the first quarter of 2021-2022, very much outstripping the £184 million made during the same time last year. We do still have some way to go, however, as rail brought in £2.8 billion during the same period two years ago.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest news

Taziker joins the battle against homelessness and the issues it causes

Taziker is playing its part to help the homeless in the surrounding community whilst it works on refurbishing Bristol Temple Meads station. The multi-disciplinary contractor...

South Wales Metro moves forward

The South Wales Metro took another important step forward after crucial work was completed on the project over the Christmas break. Transport for Wales (TfW)...

Hinckley National Rail Freight Interchange consultation underway

A consultation is underway into proposals for Hinckley National Rail Freight Interchange. The consultation is being hosted by Tritax Symmetry, and it launched on Wednesday,...
- Advertisement -

More news

Railway needs your help in fundraiser

The Mid-Norfolk Railway needs help from the rail community to raise funds so it can restore and equip a former Network Rail Spooner Row...

An opportunity to bid for DRS heritage rolling stock

If you fancy buying a train, now might be the right time – as a second collection of Direct Rail Services’ (DRS) heritage stock...

TfL’s CFO makes a change after 12 years

Simon Kilonback is leaving Transport for London after 12 years, where he most recently served as the organisation’s chief financial officer. He is moving to...
NEWSLETTER SIGN UP