Transport Secretary statement following RMT rejection of TOCs and Network Rail offers

THE UK's Transport Secretary, Mark Harper, has issued a statment, after RMT has rejected the latest offers from both Network Rail and the train operating companies. We are by told by the Department for Transport because that the offer that was made to the RMT, by Train Operating Companies (TOCs) and Network Rail (NR), was a:- "fair and reasonable offer of a 9% pay increase over 2 years (5% backdated for 2022, paid in a lump sum, and 4% for 2023), with lower paid employees getting larger increases."

Transport Secretary, Mark Harper in response to the rejection said:- "The RMT's rejection of these best and final offers is a kick in the teeth for passengers across the country and the RMT's own members, who having been ordered to take strike action are now being blocked from having a say on their own future. The RMT's leaders should have had the courage to allow their own members to have the chance to vote on their own pay and conditions, rather than making that decision for them behind closed doors. It is time for those union leaders to face the reality; our railways are currently not financially sustainable, reform is essential. I have played my part. I met union leaders. The Rail Minister and I facilitated regular meetings between all parties. We guaranteed fair and reasonable offers on pay and reform. It is now clear that no realistic offer is ever going to be good enough for the RMT leadership."

Also commenting to the pay deal given by the train operators, the RMT General Secretary, Mick Lynch, said:- "We have carried out an in-depth consultation of our 40,000 members and the message we have received loud and clear is to reject these dreadful offers. Our members cannot accept the ripping up of their terms and conditions or to have safety standards on the railway put into jeopardy under the guise of so-called modernisation. If our union did accept these offers, we would see a severe reduction in scheduled maintenance tasks, making the railways less safe, the closure of all ticket offices and thousands of jobs stripped out of the industry when the railways need more investment not less. We have carried out an extensive listening exercise and our members have spoken. It is now time for the employers and the Government to listen to railway workers in their tens of thousands. Our industrial campaign will continue for as long as it takes to get a negotiated settlement that meets our members reasonable expectations on jobs, pay and working conditions."

The RMT also claims:- "We rejected the rail industry offers following a wide ranging and in depth consultation with every level of the union involved in the national rail dispute, the NEC decided to reject both offers on the basis that they do not meet members expectations on pay, job security or working conditions. The union has also made it clear that it is seeking an unconditional pay offer, a job security agreement and no detrimental changes being imposed on members terms, conditions and working practices. The union views Network Rail's plans for maintenance, as unsafe, unhealthy for our members and unworkable. RMT will now seek further meetings with Network Rail and RDG in order to work towards a negotiated settlement."

Yet the Department for Transport claim that:- "The rejected offer would deliver much needed and ambitious reform of the railway that is necessary to secure the future of the industry, while not overburdening taxpayers at a time of significant pressure on public finances. This fair pay offer balanced the need to ensure pay restraint while costs are subsided by the taxpayer and looks to deliver efficiencies through savings and much needed reforms to modernise our railways. This was a good deal for railway workers and they accept it. The train operators' deal provides a significant uplift and an improved pay offer to workers at a time of great challenge for the rail sector. Crucially this deal targets the lowest paid, where a worker earning:- £20,000 could receive a:- £1,750 uplift in pay, in year 1, which is an:- 8.8% increase. Similarly, the Network Rail offer provides a minimum uplift of a consolidated:- £1,750 or a 5% increase (whichever is greater) as well as:- £250 uplift, to employees who currently earn £24,000 pa or less in base pay, for 2021. The offer also included several new benefits, like:- discounted staff travel. Over the 2 years, this adds up to an increase of up to:- 14.4% for those on the lowest salaries. These offers also included:- guarantees of no compulsory redundancies, providing job security and certainty to the rail workforce."

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Energy companies halt forced installation of prepayment meters

FOLLOWING Energy Security Secretary Grant Shapps' intervention, all energy suppliers have now committed to ending the forced installation of prepayment meters in vulnerable customers' homes. After concerns were raised about the sharp rise in companies seeking warrants to enter people's homes to forcibly install prepayment meters, Mr Shapps wrote to energy bosses insisting they revise their practices and improve their action to support vulnerable households, to make sure prepayment meters being installed is a genuine last resort. As part of this, he asked all suppliers to set out what they are doing to support their customers, how many warrants they have each sought, and plans to redress any wrongdoing.

It follows the Energy Security Secretary launching a crackdown on the mistreatment of customers in January 2023, where he charged the Energy Minister with meeting suppliers to explain their actions and called on magistrates to improve their scrutiny of the warrants crossing their desk. Just this week, Lord Justice Edis issued directions to magistrates courts to stop approving warrants to force-fit prepayment meters grinding the practice to a firm halt.

However, given the failure of the energy regulator to identify recent unacceptable behaviour such as that of British Gas; or other significant shortcomings; he told Ofgem to improve their oversight of these companies and toughen up on suppliers. Now in line with the Energy Security Secretary's request, Ofgem has committed to speaking to consumers rather than just suppliers about their experiences.

This week the Energy Security Secretary set suppliers a deadline to urgently report back on remedial action for customers who faced wrongful installations.

All suppliers responded by the Energy Security Secretary's deadline, committing to end the practice which breaches rules in place to protect vulnerable households, and setting out their plans for identifying those that may have had meters wrongfully installed. However, while several set out redress that would be provided to customers in this instance; such as providing compensation, or replacement of a prepayment meter with a credit meter; a number failed to address the question.

The Energy Security Secretary has therefore found most suppliers are falling short on correcting their ways and said halting forced installation is:- "only the beginning" of fixing the:- "abhorrent" practice of forcibly fitting prepayment meters into vulnerable customers' homes.

He said he will continue to stand up for vulnerable consumers who have had their homes invaded, and to ensure that this cannot happen in future. However, he is still pushing suppliers to make good on failures and was angered letters back to him only offered 'half the picture' as details on how they'll fix wrongdoings were missing from several replies.

Energy Security Secretary Grant Shapps said:- "People will have understandably been shocked and appalled at how vulnerable people's homes have been invaded and prepayment meters installed against their wishes – and suppliers are only at the beginning of correcting this abhorrent behaviour. Since those reports were published, I have demanded answers from suppliers, and Ofgem:- all suppliers are now halting forced installations, magistrates are no longer signing off warrant applications and Ofgem are upping their game when it comes to their reviews. But I am angered by the fact some have so freely moved vulnerable customers onto prepayment meters, without a proper plan to take remedial action where there has been a breach of the rules. So, I have only received half the picture as it still doesn't include:- enough action to offer redress to those who have been so appallingly treated. This is simply not good enough and absolutely needs to be addressed by Ofgem's review - I want to see plans from suppliers actually acted upon – and customers given the service they have a right to expect."

Following the Times investigation, British Gas boss Chris O'Shea was asked to meet the Energy Minister and told to take urgent steps to repair the damage done to their reputation and urgently outline the role he will personally take to fix these cultural issues.

He was also told that vulnerable, mistreated customers need to be identified and redress provided, with the Energy Security Secretary monitoring matters extremely closely to make sure this happens.

Mr Shapps is a sharing the responses with energy regulator, Ofgem, who are currently carrying out a review into the use of prepayment meters; telling them that what he has seen so far simply isn't good enough.

He's called on them to set up a new customer reporting system for households to pass on their own stories of how they are being treated; especially those who are vulnerable; and not just rely on energy firm bosses to share information. The regulator has confirmed they will look at doing this such as engaging more with charities and other groups that represent consumers.

Mr Shapps said he will be keeping a watchful eye on the activities of suppliers to make sure this doesn't happen again; starting with Ofgem changing the way they conduct their reviews so they never again have the wool pulled over their eyes.