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DfT Operator

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DfT Operator Limited
Company typeGovernment-owned holding company
IndustryRail transport
PredecessorDirectly Operated Railways
Founded24 May 2018; 7 years ago (2018-05-24)
FateGreat British Railways (planned merger)
HeadquartersLondon, England
Area served
England
Key people
Services
RevenueIncrease £3.5 billion (2024)
Decrease £29.4 million (2024)
Decrease £22.2 million (2024)
Total assetsIncrease £834 million (2024)
Total equityDecrease £51.3 million (2024)
Number of employees
Increase 16,737 (2024)
ParentDepartment for Transport
Subsidiaries
Websitewww.gov.uk/government/organisations/dft-operator-limited Edit this at Wikidata
Footnotes / references
[1]

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 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.

History

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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, 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

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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, 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, the six DFTO-owned TOCs are responsible for four in ten passenger journeys.[18]

List of subsidiaries

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The table below lists the current and confirmed future subsidiary train operating companies along with when and why they became part of DFTO.

Subsidiary train operating companies of DfT Operator
Operator Date Type Reason Ref
London North Eastern Railway 24 June 2018 Terminated Financial failure [19]
Northern Trains 1 March 2020 Terminated Service failure [20]
Southeastern 17 October 2021 Terminated Financial misconduct [21]
TransPennine Express 28 May 2023 Terminated Disruption [10]
South Western Railway 25 May 2025 Nationalised — [14]
c2c 20 July 2025 Nationalised — [15]
Greater Anglia 12 October 2025 Nationalised — [16]
West Midlands Trains 1 February 2026 Nationalised — [17]
Chiltern Railways March 2026 (estimated) Nationalised — [22]
Govia Thameslink Railway June 2026 (estimated) Nationalised — [22]
Great Western Railway September 2026 (estimated) Nationalised — [22]
East Midlands Railway December 2026 (estimated) Nationalised — [22]
Avanti West Coast March 2027 (estimated) Nationalised — [22]
CrossCountry June 2027 (estimated) Nationalised — [22]
Legend
  Future subsidiary

See also

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References

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  1. ^ a b c "DfT OLR Holdings Limited Annual Report and Accounts: Year Ended 31 March 2024". gov.uk. Department for Transport. 29 July 2024. Retrieved 16 July 2025.
  2. ^ "About us". GOV.UK. DfT OLR Holdings.
  3. ^ "Transport minister ends Virgin East Coast franchise". The Railway Magazine. No. 1407. June 2018. p. 7.
  4. ^ "LNER brand revived for East Coast". Rail Express. No. 266. July 2018. p. 10.
  5. ^ "Government takes over Northern franchise". Rail Express. No. 286. March 2020. p. 6.
  6. ^ "Arriva stripped of Northern franchise". Railways Illustrated. No. April 2020. p. 7.
  7. ^ "OLR taking over Southeastern". Modern Railways. No. 878. November 2021. pp. 8–9.
  8. ^ Lancefield, Neil (17 March 2022). "Govia slapped with £23.5m penalty over Southeastern scandal". Evening Standard. Archived from the original on 17 March 2022. Retrieved 16 September 2023.
  9. ^ "TransPennine Express loses contract over poor service". BBC News. 11 May 2023. Retrieved 11 May 2023.
  10. ^ a b Topham, Gwyn (11 May 2023). "TransPennine Express nationalised for catalogue of failings and poor service". The Guardian. ISSN 0261-3077. Retrieved 11 May 2023.
  11. ^ "First last, or last first". Modern Railways. No. 897. June 2023. p. 6.
  12. ^ a b c Benson, Michael (8 January 2025). "When will my local train operator be nationalised?" – via access-date=16 July 2025.
  13. ^ Alexander, Heidi (4 December 2024). "Written statement to Parliament: Public ownership: railway passenger services". Department for Transport. Retrieved 4 December 2024.
  14. ^ a b "South Western Railway first rail firm renationalised by Labour". BBC News. 25 May 2025. Retrieved 16 July 2025.
  15. ^ a b "Government reveals first three operators to be renationalised after law change". Railnews. 4 December 2024. Archived from the original on 7 December 2024.
  16. ^ a b "Greater Anglia to be nationalised in October, says rail operator". BBC News. 9 May 2025. Retrieved 16 July 2025.
  17. ^ a b "Transfer to Public Ownership" (Press release). West Midlands Railway. 28 July 2025. Retrieved 30 July 2025.
  18. ^ "London to Essex c2c services return to public control in step towards Great British Railways". gov.uk (Press release). Department for Transport & DfT Operator Limited. 18 July 2025. Retrieved 20 July 2025.
  19. ^ "East Coast train line to be put into public control". BBC News. 16 May 2018. Retrieved 16 July 2025.
  20. ^ "Government decision on Northern Rail". GOV.UK. Department for Transport & DfT OLR Holdings. 29 January 2020. Retrieved 16 July 2025.
  21. ^ "LSER issued with £23.5 million penalty over breach of contract". GOV.UK. Department for Transport & DfT OLR Holdings. 17 March 2022. Retrieved 16 July 2025.
  22. ^ a b c d e f "DFTO Transition Timeline". TSSA. 4 December 2024. Retrieved 27 July 2025.
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