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Train drivers’ decades-long ticket fraud ‘cost taxpayer millions

NeakPed

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Yes although many people will have one card valid for duty, leisure and residential.
I am happy to be proved wrong, but I didnt think that TOC passes are valid for duty purposes where that involves train working.
ie they are valid for attending training courses, medicals, meetings etc but not for travelling in conjunction with working a train.
 
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R

RailUK Forums

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Yes although many people will have one card valid for duty, leisure and residential.
Indeed the back of my TOC pass says ‘valid for unlimited free leisure, residential and duty travel on <My TOC> services’

I then have a separate ‘Duty Authority to Travel’ (DAT) card
 

Starmill

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I am happy to be proved wrong, but I didnt think that TOC passes are valid for duty purposes where that involves train working.
ie they are valid for attending training courses, medicals, meetings etc but not for travelling in conjunction with working a train.
It's operator specific. Quite a lot of train drivers and guards won't have DAT cards if their own trains are usually used and they already have their own duty card.
 

Tetchytyke

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I don't think it is necessarily distorting anything in its reporting of this story: it's pretty clear that the drivers knew exactly what they were doing.
Is it clear? It looks like they were travelling for work and their employer decided to create fictitious duty rosters to avoid having to pay for their drivers to travel to medicals.

There nothing to suggest the drivers benefited from this: if they’d been doing this for leisure travel, the Telegraph would have said so.

The only beneficiary is their employer, which is the government. The drivers would have been reimbursed in full for their travel so they had no incentive to do anything they considered wrong.

And I disagree strongly that it doesn't matter because it's "only" a few million over several years
It doesn’t matter because it is one government department “stealing” from another government department. The net loss to the taxpayer is precisely zero. It is merely arguing about which cost centre the cost of travel should be applied to.

== Doublepost prevention - post automatically merged: ==

Turning off Javascript is exactly what I was referring to by "dodgy tactics"
It isn’t, turning off Javascript is an entirely legitimate browser setting.

The fact the Telegraph’s paywall only works with JavaScript enabled is neither here nor there.
 

Snow1964

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The only beneficiary is their employer, which is the government. The drivers would have been reimbursed in full for their travel so they had no incentive to do anything they considered wrong.
That might be true on a net financial basis for drivers, but they would have known they were failing to obtain tickets and expense them so had incentive to save admin time.

The net loss to the taxpayer is precisely zero.
And actually every ticket not issued doesn't increase income, thus profitability of the private operators is reduced, and thus amount of Corporation Tax paid. So your statement is fundamentally wrong because of the tax implications.

Even since 2020 under management contracts, there is a percentage fee based on income, so that is changed by missing ticket sales. So as management fee is affected, the effect cannot be precisely zero to Government
 
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Starmill

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That might be true on a net financial basis for drivers, but they would have known they were failing to obtain tickets and expense them so had incentive to save admin time.


And actually every ticket not issued doesn't increase income, thus profitability of the private operators is reduced, and thus amount of Corporation Tax paid. So your statement is fundamentally wrong because of the tax implications.

Even since 2020 under management contracts, there is a percentage fee based on income, so that is changed by missing ticket sales. So as management fee is affected, the effect cannot be precisely zero to Government
It would have been true in the strictest sense on DfTO services, although that would only have been LNER and Northern for some of their tenure.
 

43096

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It doesn’t matter because it is one government department “stealing” from another government department. The net loss to the taxpayer is precisely zero. It is merely arguing about which cost centre the cost of travel should be applied to.
Only since 2020 does that apply. Before then the (privately owned/operated) TOCs were taking revenue risk i.e. they were paying premiums or receiving subsidy at fixed amounts to DfT. So this action by DRS was defrauding the private sector companies.
 

sprunt

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It doesn’t matter because it is one government department “stealing” from another government department. The net loss to the taxpayer is precisely zero. It is merely arguing about which cost centre the cost of travel should be applied to.
No. This is going back to when revenue risk sat with the TOCs, which were private companies, not government departments. It was the government stealing (there are no scare quotes required) from private companies. For some reason a lot of people on this forum don't seem to think this is an issue.
 

Merle Haggard

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Yes although many people will have one card valid for duty, leisure and residential.

The passenger TOCs had, in effect, reciprocal arrangements because each could be both user and used. It was taken presumably that everything would approximately balance out.
It was different for the FOCs - even the ex BR ones. Because there could be no reciprocality travel had to be paid for. As an example, working for RfD and then EWS I retained my status pass but my employer had to pay ATOC for it. Similarly, when I retired EWS had to make a (quite large!) payment for me to keep it for life in accordance with conditions. Similarly with FOC Duty travel by rail; we had to pay (and get it refunded as expenses); but, quite often, it was cheaper to go by car. RfD had company cars. I would be surprised if DRS didn't.
 

whoosh

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For legitimate, correct, FOC 'duty travel' against a correct roster (as wasn't the case for the travel in the Telegraph story), am I correct in assuming that - somehow - some payment is made by the FOCs to the TOCs (directly or otherwise)? Is this just a 'lump sum', or is it, to greater or lesser extent, calculated based on the travel actually made?
Yes, Duty Passes are paid for.
 

Railworker101

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Freight Duty Passes are paid for by the FOC, I believe there is a price per card plus an annual fee, probably, all in, it'll be in the region of £1000, ish
 

Merle Haggard

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Certainly in the early days of privatisation - where monetisation of everything may have been the aim - a charge was even made by some TOCs for use of 'their' platform by FOC drivers relieving trains.
 

fandroid

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So the Telegraph headline was totally wrong in who was being ripped off. I imagine that even their readership would not mostly be bothered by the taxpayer getting a benefit at the TOC's expense.
 

Tetchytyke

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No. This is going back to when revenue risk sat with the TOCs
Revenue risk has never truly sat with the TOCs and, even if it had, no TOC in the history of privatisation has ever generated a net surplus to the taxpayer. All of them have always been subsidised.

So I'll stick with my original opinion: they're arguing about which cost centre to apply the expenditure to.

== Doublepost prevention - post automatically merged: ==

And actually every ticket not issued doesn't increase income, thus profitability of the private operators is reduced
No TOC has ever generated a net profit. All of them have been subsidised, right since day one.
 

sprunt

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Revenue risk has never truly sat with the TOCs and, even if it had, no TOC in the history of privatisation has ever generated a net surplus to the taxpayer. All of them have always been subsidised.

So I'll stick with my original opinion: they're arguing about which cost centre to apply the expenditure to.
True or false: If the government company had paid for their drivers to travel to non-driving appointments, they would have made more money than they did when the government company was issuing fraudulent documents to allow the drivers to travel without charge?

The fact that they were subsidised is completely irrelevant - the subsidy was under an agreed contract which also allowed the TOCs to increase their profits by carrying more fare paying passengers. It didn't - unless you know otherwise - allow for the government to produce fraudulent documents to allow their staff to be carried without payment to non-driving appointments.
 

Tetchytyke

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True or false: If the government company had paid for their drivers to travel to non-driving appointments, they would have made more money than they did when the government company was issuing fraudulent documents to allow the drivers to travel without charge?
False. Arguing about cost centres.

If DRS had paid £50 for a train ticket then the subsidy would have been £50 less. If DRS didn't pay £50 for the train ticket then the subsidy would be £50 more. Net effect, zero. Net cost to the taxpayer, zero.

The fact that all the TOCs were (and are) so generously lavished with taxpayer subsidies is precisely the point.
 

Lighteight123

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False. Arguing about cost centres.

If DRS had paid £50 for a train ticket then the subsidy would have been £50 less. If DRS didn't pay £50 for the train ticket then the subsidy would be £50 more. Net effect, zero. Net cost to the taxpayer, zero.

The fact that all the TOCs were (and are) so generously lavished with taxpayer subsidies is precisely the point.
But in the argument of the subsidy coming from track access charges, if the ticket had been purchased the track access charges would still be the same but the TOC would have received £50 more from tickets.

I do feel that some goal posts are being moved.
 

Starmill

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But in the argument of the subsidy coming from track access charges, if the ticket had been purchased the track access charges would still be the same but the TOC would have received £50 more from tickets.

I do feel that some goal posts are being moved.
In that scenario the franchisee fee may have had some revenue generating element to it in the contract, yes. It probably wouldn't have been any different from a few thousand pounds a year, but it could have been very slightly lower. So actually, DRS saved public money in that hypothetical scenario, and thus had a benefit and not a cost to the "taxpayer".

Either way, what the Telegraph are claiming is total bunkum.
 

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