The £10 administration fee for season ticket refunds should be waived in the midst of the Covid-19 outbreak, Labour’s London Assembly Transport Spokesperson, Navin Shah AM, has urged. In a letter to the Secretary of State for Transport, Grant Shapps, Mr Shah has also asked for clarity over some of the guidance being issued to train operators regarding the pro-rata refund system announced by the Government.
In March, the Government enacted emergency measures which enable passengers to claim a refund on their unused season tickets due to the exceptional circumstances presented by the global pandemic.
However, as part of the terms and conditions attached to these measures, franchised rail operators are permitted to charge a £10 administration fee for all cancellations.
Transport for London (TfL) have now confirmed that they will separately refund this charge to its customers.
In his letter, Mr Shah calls upon the Government to follow TfL’s lead and use their powers to scrap this charge. He highlights that the Government are in a position to do this, after taking on all revenue and cost risks from rail operators through the emergency legislation.
Mr Shah has also asked the Transport Secretary for clearer guidance over the pro-rata refund system that the Government have announced has been put in place. He indicates that train companies are continuing to refund customers in the usual way, and this system does not actually reflect a “true pro-rata” rate.
TfL have clarified on their website that it will not be offering refunds on a pro-rata basis.
Labour’s London Assembly Transport Spokesperson, Navin Shah AM, said:
“It has been positive to see the Government take action to ensure that our rail services can remain open and functional for our key and essential workers during these extraordinary and difficult times.
“It is important that those avoiding using the train network, in line with the Government guidance, should not be financially penalised for doing the right thing.
“Whilst the £10 admin fee may not seem like a significant amount compared to the cost of a season ticket, it’s only fair that it’s scrapped in the current circumstances.
“We also need confirmation from the Government on some of the unanswered questions surrounding the pro-rata refund system they have put in place.
“I have now written to the Transport Secretary to urge his department to follow TfL’s lead in both these respects by waiving the charge and providing some clarity over what passengers should expect when applying for a refund”.
Notes to editors
- Navin Shah AM’s letter to the Secretary of State for Transport, Grant Shapps, can be found attached;
- In March, the Government enacted emergency measures which enable passengers to claim a refund on their unused season tickets due to the exceptional circumstances presented by the global pandemic;
- Transport for London have confirmed that they will separately refund the £10 administrative fee for season ticket cancellations and will not be offering refunds on a pro-rata basis;
- Train operators are continuing to issue refunds in the normal way. For example, a pro-rata system might see a customer with half their annual season ticket unused being issued with a 50% refund. However, as things stand, train operators would continue to work out the cost of 6 monthly tickets and refund the difference;
- Navin Shah AM is the London Assembly Member for Harrow and Brent.