DfT Operator

DfT Operator Limited was established in May 2018 under the name DfT OLR Holdings Limited, 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.[https://www.gov.uk/government/organisations/dft-olr-holdings-limited/about About us – DfT OLR Holdings] 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.{{cite magazine|title= Transport minister ends Virgin East Coast franchise |magazine=The Railway Magazine |issue=1407 |date=June 2018 |page=7}}{{cite magazine|title= LNER brand revived for East Coast |magazine=Rail Express |issue=266 |date=July 2018 |page=10}} This was followed by the transfer of Northern Trains on 1 March 2020, after Arriva Rail North was deemed financially unsustainable.{{cite magazine|title= Government takes over Northern franchise |magazine=Rail Express |issue=286|date=March 2020 |page=6}}{{cite magazine|title= Arriva stripped of Northern franchise |magazine=Railways Illustrated |issue=April 2020 |page=7}} In October 2021, Southeastern took over the South Eastern franchise from Govia after financial irregularities were uncovered.{{cite magazine|title= OLR taking over Southeastern |magazine=Modern Railways |issue=878|date=November 2021 |pages=8–9}}{{Cite news |last=Lancefield |first=Neil |date=17 March 2022 |title=Govia slapped with £23.5m penalty over Southeastern scandal |url=https://www.standard.co.uk/news/uk/southeastern-govia-grant-shapps-goahead-group-department-for-transport-b988633.html |url-status=dead |archive-url=https://web.archive.org/web/20220317113011/https://www.standard.co.uk/news/uk/southeastern-govia-grant-shapps-goahead-group-department-for-transport-b988633.html |archive-date=17 March 2022 |access-date=2023-09-16 |newspaper=Evening Standard}} 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.{{Cite news |date=2023-05-11 |title=TransPennine Express loses contract over poor service |work=BBC News|url=https://www.bbc.com/news/business-65555262 |access-date=2023-05-11}}{{Cite news |last=Topham |first=Gwyn |date=2023-05-11 |title=TransPennine Express nationalised for catalogue of failings and poor service |newspaper=The Guardian|url=https://www.theguardian.com/business/2023/may/11/transpennine-express-nationalised-for-catalogue-of-failings-and-poor-service |access-date=2023-05-11 |issn=0261-3077}}

By mid-2023, DFTO had become the largest rail operator in Britain, accounting for 23% of all passenger revenue and 26% of passenger mileage.{{cite magazine|title= First last, or last first |magazine=Modern Railways |issue=897 |date=June 2023 |page=6}} Later that year, the Labour Party won the general election with a manifesto commitment to renationalise the railways. This was formalised through 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 DfT Operator.

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.{{cite web| url = https://www.gov.uk/government/speeches/public-ownership-railway-passenger-services | publisher = Department for Transport | first1 = Heidi | last1 = Alexander | authorlink1 = Heidi Alexander | title = Written statement to Parliament: Public ownership: railway passenger services | date = 4 December 2024 | access-date = 4 December 2024}} The announcement also confirmed the transfer of additional TOCs: South Western Railway on 25 May 2025, c2c on 20 July 2025, and Greater Anglia on 12 October 2025.{{Cite web |title=Greater Anglia to be nationalised from October |url=https://www.greateranglia.co.uk/about-us/news-desk/news-articles/greater-anglia-be-nationalised-october |access-date=2025-05-10 |website=Greater Anglia |language=en}}

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.

DfT Operator currently has several active rail subsidiaries and has previously held other rail assets. These companies operate under public ownership following the expiry or early termination of private franchises.

• London North Eastern Railway – took over the InterCity East Coast franchise in June 2018
• Northern Trains – assumed control of the Northern franchise in March 2020
• Southeastern – took over the South Eastern franchise in October 2021
• TransPennine Express – took over TransPennine services in May 2023
• South Western Railway – transferred to public ownership on 25 May 2025

• Directly Operated Railways
• Great British Railways

{{Reflist}}

• {{Official website|https://www.gov.uk/government/organisations/dft-operator-limited}}

{{Department for Transport|state=collapsed}}

Category:Department for Transport

Category:Government-owned companies of the United Kingdom

Category:Operators of last resort

Category:2018 establishments in the United Kingdom