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<p>At the onset of the COVID-19 pandemic, when revenues dropped very significantly,
the Government introduced emergency agreements that transferred day-to-day revenue
and cost risks to the Department. These agreements protected services that key workers
depended on. Under the agreements, the Government effectively receives the revenue
and pays an operator’s reasonable costs, subject to the revenue incentive mechanism
introduced recently to encourage operators to grow patronage and revenues.</p><p>
</p><p>Operators are compensated by the Government for all reasonable costs incurred
that are accumulated in accordance with the terms of the contract, including those
in relation to Delay Repay.</p><p> </p><p>Payments made to rail passengers for Delay
Repay as well as discretionary compensation are published annually, and for 2022-23
totalled £101 million.</p>
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