Passenger service contracts
Passenger service contracts (PSCs) will replace rail passenger franchising.
Applies to England, Scotland and Wales
About passenger service contracts
In May 2021, the Secretary of State for Transport announced ambitious plans to reform the railway when he published the Williams-Shapps Plan for Rail.
One of the most significant changes is the introduction of passenger service contracts (PSCs), which will replace franchises.
The new system of PSCs will build on the concession model used by Transport for London (TfL) Overground services and many railways around the world. PSCs will focus operators on running services efficiently and providing reliable and high-quality services for passengers.
This is a major change from franchising, where each private operator designed its own timetable, set fares and took revenue on its part of the network. Competitions were based on complex and uncertain revenue forecasts, as most operators took both revenue and cost risk. This will end under most PSCs.
Partners will be procured to deliver services and collaborate with Great British Railways to improve passenger services across the network.