Concessionary Fares On The British Railway Network - Railcards

Railcards

Before the rail network was privatised, British Rail introduced several discount cards that were available to certain groups of people. Various reasons are usually cited:

• To encourage off-peak and leisure travel
• To provide greater access to rail services for low-income groups, creating a social benefit
• To generate new sources of income: certain groups of people may be encouraged to perform a modal switch to rail transport if given the benefit of cheaper fares

All of the schemes were retained after privatisation, despite some threats of abolition. By generating extra income at off-peak times when trains are generally less crowded, they offer a potential commercial benefit for the TOCs.

Participation in the Young Persons, Senior and Disabled Persons Railcard schemes is mandatory for all TOCs under their franchise agreements; the Family and HM Forces Railcard schemes are notionally voluntary, but all TOCs participate in them. For the Network Railcard, which has a restricted geographical area, all TOCs in the relevant area are members of the scheme and participate in it. The revenue applicable to each TOC from the use of each Railcard is calculated by the Association of Train Operating Companies (ATOC), and voting rights and costs payable are attributed accordingly.

7% of fare revenue is derived from travel using one of the Railcard schemes. This amounts to approximately £400m, of which £60m is estimated by ATOC to be attributable entirely to the existence of the Railcards - if they were not available, journeys to a total value of £60m per year would not be made by rail. Approximately 2,200,000 Railcards are in use at any one time in Britain.