A new system described as ‘Emergency Recovery Measures Agreements’ came into effect on Monday, with train operators moving onto transitional contracts.

Government says the new arrangements, which run for up to 18 months, have tougher performance targets and lower management fees. But critics have described the move as “simply replacing one set of interim contracts with another” and “papering over the cracks of a broken rail system”.

Transport Secretary Grant Shapps said the new contracts signalled an end to the “complicated franchising model” and added a new structure for the railways will take shape over the coming months, with Keith Williams’ railway review expected soon.

“This pandemic has proven that the model of privatisation is no longer working,” Grant Shapps admitted. “Our new deal for rail will simplify people’s journeys, ending the uncertainty and confusion about whether you are using the right ticket or the right train company.”

Transport Select Committee chair Huw Merriman called on the Government to set out more detail about what it intends to do next. “We need a permanent, long term solution that delivers clarity for the rail sector and the passenger. The sooner we know what that looks like, the better.”

He added: “The Williams Rail Review was expected to publish its findings and recommendations in autumn 2019 with reform expected this year. The wait for Williams is delaying change.”

Labour's Shadow Rail Minister Tan Dhesi said: “We welcome the Government admitting privatisation hasn’t worked and bringing in greater public sector involvement into managing the railways.” But he added that the new agreements “paper over the cracks of a broken rail system”.

Campaign for Better Transport chief executive Darren Shirley welcomed the end of rail franchising. “The future of the railway now depends on the creation of a new system that is centred around passengers,” he said.

Transport Focus chief executive Anthony Smith added: “Government and train companies must work together to offer what passengers are keen to see and provide tickets that fit the way we live and travel now, such as flexible season tickets.”

Rail Delivery Group chief executive Paul Plummer commented: “A renewed and reinvigorated partnership between the public and private sectors will be the best way to improve services and help regrow the market for train travel.”

(Photograph: Network Rail)