Overview

This bill mandates that train companies in England, Wales, and Scotland must offer customers the cheapest available fare first. Failure to comply will result in refunds for customers and penalties for the companies. The Office of Rail Regulation will monitor compliance.

Description

The Train Companies (Minimum Fares) Bill requires the Secretary of State to create regulations forcing train companies to prioritize the cheapest available fare when presenting options to customers. These regulations will define "cheapest available fare," guarantee refunds for customers if this isn't offered first, and establish penalties for non-compliance. The Office of Rail Regulation will oversee the act's implementation and report annually on compliance levels. The bill requires parliamentary approval of these regulations before they come into effect. The act will come into force two months after its passage.

Government Spending

The bill's impact on government spending is not directly specified. However, there could be costs associated with the Office of Rail Regulation's increased monitoring and enforcement activities. Conversely, there may be savings to the government related to refunds that are issued. The exact financial effect is unclear from the bill text.

Groups Affected

• Train Companies: Will face increased regulatory burdens, potential penalties for non-compliance, and potentially reduced revenue if many passengers utilize the cheaper fares.
• Train Passengers: Will benefit from potentially lower fares and clearer pricing transparency. They may also have improved rights with recourse through refunds.
• Office of Rail Regulation: Will have increased responsibilities in monitoring and enforcing the regulations.

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