Top Qs
Timeline
Chat
Perspective
DfT Operator
UK rail holding company, founded 2018 From Wikipedia, the free encyclopedia
Remove ads
DfT Operator Limited (DFTO) is a British government-owned holding company established in 2018 as DfT OLR Holdings Limited by the Department for Transport (DfT). It was created to act as the operator of last resort for rail franchises in England, taking over train operating companies (TOCs) that are either financially failing or being returned to public ownership at the end of their contract terms.
DFTO’s role has significantly expanded since its inception, particularly following the passage of the Passenger Railway Services (Public Ownership) Act 2024, which enabled the government to assume ownership of passenger rail services without buying out private contracts. Under this framework, the government has announced that it will not renew or extend existing private rail operating contracts, instead transferring services to DFTO as they expire. This policy forms part of the Labour Party's commitment to renationalise passenger rail, a key pledge of its 2024 general election manifesto.
Acting under the direction of DfT, as of July 2025[update] DFTO owns six TOCs, making it the largest operator of passenger rail services in Britain by passenger revenue and mileage, being responsible for four in ten passenger journeys. It is expected to play a transitional role in the government's long-term rail strategy, ahead of the launch of Great British Railways, a planned public body that will integrate both operations and infrastructure across the national network. It is expected that all TOCs will be in government ownership by October 2027.
Remove ads
History
Summarize
Perspective
DfT OLR Holdings was established in May 2018 as a subsidiary of the Department for Transport (DfT). It was created to meet the Secretary of State's obligation under section 30 of the Railways Act 1993 to ensure continuity of rail services in the event of franchise failure.[2] The company serves as the legal vehicle through which the DfT takes ownership of train operating companies (TOCs) when a franchise is either terminated early or not renewed.
The first use of this model occurred on 24 June 2018, when London North Eastern Railway replaced Virgin Trains East Coast following the collapse of the InterCity East Coast franchise.[3][4] This was followed by the transfer of Northern Trains on 1 March 2020, after Arriva Rail North was deemed financially unsustainable.[5][6] In October 2021, Southeastern took over the South Eastern franchise from Govia after financial irregularities were uncovered.[7][8] On 28 May 2023, TransPennine Express was transferred to public ownership after the franchise operated by FirstGroup was not renewed, following repeated complaints of cancellations and poor service.[9][10]
By mid-2023, the company had become the largest rail operator in Britain, accounting for 23% of all passenger revenue and 26% of passenger mileage.[11]
As of March 2024[update], at the end of the 2023/2024 financial year, DfT OLR had 16,737 employees across its four TOCs,[1] and accounted for 16% of UK passenger journeys and 23% of passenger miles.[1]
Starmer government
In July 2024, the Labour Party won the general election with a manifesto commitment to renationalise the railways. The Starmer government voted in the Passenger Railway Services (Public Ownership) Act 2024, which allowed for passenger rail services to be returned to state control without requiring the purchase of private contracts. The legislation marked a shift in rail policy: rather than offering new private franchises, the government announced it would allow contracts to expire and transfer them to government operation.[12] The timetable for takeovers would partly be determined by DFTO capacity.[12]
In December 2024, then Secretary of State for Transport Louise Haigh announced that the company would be renamed DfT Operator Limited, reflecting its expanded purpose and long-term strategic role.[13] These changes form part of a wider restructuring of the UK rail system under the planned launch of Great British Railways, a new public body that will integrate train operations, infrastructure, and planning across Britain. DFTO is expected to be absorbed into Great British Railways as part of this transition, with the aim of creating a unified, publicly accountable railway network.
The government initially confirmed the transfer of three additional TOCs. South Western Railway transferred on 25 May 2025.[14] c2c transferred on 20 July 2025,[15] and Greater Anglia will transfer on 12 October 2025.[16] West Midlands Trains will transfer on 1 February 2026,[17] but as of July 2025[update], no other dates have been confirmed, but it is expected that the takeover of the last two TOCs, Avanti West Coast and CrossCountry will be completed by October 2027.[12]
As of July 2025[update], the six DFTO-owned TOCs are responsible for four in ten passenger journeys.[18]
Remove ads
List of subsidiaries
The table below lists the current and confirmed future subsidiary train operating companies along with when and why they became part of DFTO.
Legend
Future subsidiary
|
Remove ads
See also
References
External links
Wikiwand - on
Seamless Wikipedia browsing. On steroids.
Remove ads