House of Commons call for evidence on the UK Government's Railways Bill

Background

Consumer Scotland is the statutory body for consumers in Scotland.[1] Established by the Consumer Scotland Act 2020 we are accountable to the Scottish Parliament.[2] The Act provides a definition of consumers which includes individual consumers and small businesses that purchase, use or receive products or services.

Our purpose is to improve outcomes for current and future consumers and our strategic objectives are:

• to enhance understanding and awareness of consumer issues by strengthening the evidence base
• to serve the needs and aspirations of current and future consumers by inspiring and influencing the public, private and third sectors
• to enable the active participation of consumers in a fairer economy by improving access to information and support

Consumer Scotland uses data, research and analysis to inform our work on the key issues facing consumers in Scotland. In conjunction with that evidence base we seek a consumer perspective through the application of the consumer principles of access, choice, safety, information, fairness, representation, and redress.

We work across the private, public and third sectors and currently have a particular focus on three consumer challenges: affordability, climate change mitigation and adaptation, and consumers in vulnerable circumstances.

Part 1: The new regime for the railways

Consumer Scotland supports the creation of a single directing body for the railways (GBR) which unites track and train provision. As well as creating GBR the Bill confers an obligation on the Secretary of State for Transport to set a long-term strategy for the railways. These developments have the potential to improve clarity and consistency in the delivery of railway services for consumers the regulatory framework for the sector.[3]

Consumer Scotland also supports GBR’s proposed role in facilitating ticket sales to consumers and setting fares for rail services. We welcome the commitment to simplify fare structures for consumers as these have historically been complicated, resulting in consumers having difficulty in purchasing the correct and most affordable ticket for their journey.[4] GBR’s new power to reshape and simplify fares should help to improve the presentation of fare options to consumers, allowing them to more easily understand and make choices when travelling. However, the simplification of fare structures should not lead to less affordable, or understandable, ticketing options being available.

We note that the Scottish Government’s recent move to abolish peak rail fares made fare structures simpler for many Scottish consumers. However, the cheapest tickets available to some consumers, ‘super off peak’ tickets, were also withdrawn as part of the reform.[5] We are also aware that the ASA raised concerns regarding misleading operator claims of offering the ‘best price’ when peak fares were removed.[6] It is important that efforts to simplify fare structures do not lead to diminished price transparency, or indeed higher fares, for some consumers. It is also important that any ticketing system is easy to use, securely protects customer data and is accessible to all consumers, including those with disabilities.

Research by Consumer Scotland has identified the affordability of public transport as a significant barrier for consumers,[7] and maintaining fares at an affordable level remains crucial in ensuring consumers can access railway travel. We recommend that any future fare increases instituted by GBR must follow a clear procedure which demonstrates the need for any such rise. Introducing a price transparency mechanism that can be easily understood by consumers and stakeholders, and externally evaluated, should help increase consumer confidence in GBR and tackle ongoing affordability challenges.

GBR will also have a responsibility to set and promote high standards of performance across track and train. Consumer Scotland recommends that GBR should use this function to set ambitious minimum standards for service, while utilising its research and data-gathering functions to monitor performance and assess the consumer experience of journeys. We recommend regular publication of this data, with measures in place to address cases where standards are not met.

Part 2: Passenger and station services

Consumer Scotland supports the proposals in the Bill to establish a new, singular and independent Passengers’ Council, to act as a consumer “watchdog” for rail passengers. The establishment of a single passenger body, together with the establishment of GBR, should improve consumer awareness of these bodies and how their functions can help improve the consumer experience and support routes to redress.

The Bill proposes that the Council will have the ability to:

act as a statutory consultee for government and GBR policy, strategies and plans

• lead public campaigns and stakeholder management
• undertake safety regulation
• monitor passenger experience
• advocate for service improvements
• resolve complaints, and
• provide advice

Consumer Scotland supports establishing the Council as a statutory advisor with regulatory functions. This approach will provide it with more effective powers and allow it to help shape and improve key elements of the consumer experience, such as providing guidance on passenger-focused regulatory requirements, and monitoring how operators perform against a set of consumer-related service standards.

Establishing the Council alongside the ‘guiding mind’ of GBR presents an opportunity to improve data collection and monitoring regarding consumer experience. We recommend that data should be capable of being broken down by operator, and by nation and region, to allow better understanding and allow for targeted interventions to continuously improve operating performance and standards.

We especially welcome the explicit commitment in the Bill to improve the monitoring of the delivery of services for disabled consumers, for which a routemap has already been published.[8] We have previously advocated for wider data to be collected, as part of this monitoring of consumer experience, on the accessibility of trains and railway stations for disabled consumers, and the proposals set out in the UK Government’s routemap should achieve this, as well as providing improvements in other data.

The Passenger’s Council’s work must be informed by the real-world experiences of consumers. Consumer Scotland recommends that a new consumer panel be established to help inform its strategy and approach. This may come in the form of a repurposed version of the ORR’s Consumer Expert Panel or a newly-established body. Such a panel should have close working arrangements with other accessibility-focused groups such as DPTAC for the UK broadly, or MACS for Scottish consumers.

Providing an independent consumer panel within the regulatory body will also help mitigate any risk of tension between regulatory and advocacy-based functions.[9] This model has been implemented successfully at bodies with both advocacy and regulatory functions such as the Financial Conduct Authority, Ofcom and the Civil Aviation Authority. In the event that such a Panel is established, consideration should also be given to how to ensure it reflects the needs and views of consumers across the nations and regions, including those consumers who rely on cross-border services.

Regarding the ADR function to be established as part of the Passengers’ Council, Consumer Scotland supports the Bill’s proposed transfer of the ORR’s sponsorship of the rail ombudsman, with the ombudsman retaining its current accreditations and functions. This simplified process will allow for the faster establishment of the ADR function within the Council, and cause the least disruption for consumers.

Part 3: Miscellaneous provisions

Regarding access and use of rail infrastructure, Consumer Scotland welcomes the commitment to permitting open access operators to run services, as this should add value and capacity to the network. Evidence suggests that doing so is broadly good for consumers. It can ensure competition among operators in a landscape that may otherwise become less competitive with the implementation of the Passenger Railway Services (Public Ownership) Act. Open access operators can offer cheaper fares on new and otherwise unavailable routes,[10] while passenger satisfaction with these services are broadly in line with, or sometimes higher than, those with contracted operators,[11] demonstrating that they can clearly offer benefits for consumers. As the approach to network access takes shape with implementation of the Railways Bill, there will, however, be a need for careful consideration of future applications to ensure access is only granted to the network when it is in the clear interest of the consumer. Clauses in the Bill requiring GBR to publish both an Access and Use Policy, as well as an Infrastructure Capacity Plan[12] should help to effectively manage this balance, but Consumer Scotland recommends ongoing monitoring of whether these services, and access arrangements, are operating in the best interests of consumers.

Part 4: General

In relation to devolution issues, we note Scotland’s distinctive geography and the existing devolution of powers for railway operation to Scottish Ministers. Following the transfer of Scotrail into public control under Scottish Rail Holdings in 2022, track and train are already significantly integrated in Scotland. We understand that there has been regular dialogue between DfT and the Scottish Government during the development of the Bill and we support the continuation of this as it moves towards implementation, to help avoid any unintended consequences for consumers in Scotland.

The Bill provides that GBR will be steered by the objectives and outcomes contained in a new Long Term Rail Strategy (LTRS), set by the Secretary of State, while Scottish Ministers will continue to set a separate strategy for the railway in Scotland. Scottish Ministers will also be able to provide guidance regarding GBR functions, to the degree they affect Scottish railway activities. Consumer Scotland supports these measures as a means to allow the provision of Scottish railway services to better reflect the unique delivery context in Scotland.

It is also important that Scottish Ministers and bodies representing consumers in Scotland can influence any GB-wide strategy. The Bill requires GBR to consult Devolved Governments on certain significant changes to rail passenger services, to have regard to their transport strategies and to share certain information, which we welcome. The Bill states that these formal powers will be supplemented by a Memorandum of Understanding setting out how UK and devolved governments will work together in the exercise of their respective functions in relation to railway services.

While these provisions go some way to including the needs of Scottish consumers are properly considered as part of the wider GBR strategy, Consumer Scotland further recommends that the GBR Board should feature a member nominated by Scottish Ministers to ensure a voice for Scottish consumers at that strategic level.