Rail strikes cost UK £1bn as minister admits settling dispute would have cost less

A minister has admitted that it would have been cheaper to settle a dispute with unions over pay and working conditions for rail workers months ago, after it has been revealed that the rail strikes have cost the UK economy more than £1bn.

Though rail minister Huw Merriman said the need to reform the working practices made the stand off necessary, as he spoke to MPs on the transport select committee on Wednesday, saying the government had not ‘torpedoed’ a deal nor ‘interfered in a negative manner’.

Merriman cited a study which says that from June to December, the cost to the wider economy was £700m, with strikes costing the UK rail industry £25m a day through the week and £15m a day on a weekend.

To which, Labour MP Ben Bradshaw asked whether it ‘would easily be enough money to have solved this dispute months ago?’

Merriman replied: “If you look at it in that particular lens, then absolutely, it’s actually ended up costing more than would have been the case if it was just settled.

“It’s the reforms that will actually pay for these pay deals and also make the railway more efficient in the long run as well.”

RMT general secretary, Mick Lynch, said the government had: “admitted that prolonging the rail dispute was part of a deliberate strategy dictated by the government’s concern to keep down the pay of rail workers, nurses, ambulance workers and teachers.

“The wider economy and the business interests who relied on pre-Christmas trade were just collateral damage in that policy.”

Louise Haigh MP, Labour shadow transport secretary, said the government had now ‘openly admitted that their posturing and failure to take responsibility, has cost the taxpayer dear’.

Merriman has said that he is really hopeful to come to a deal with the RMT soon, with further talks to take place this week. On Monday, Train drivers led by Aslef called for further strikes for February 1st and 2nd, but the rail minister said he was ‘encouraged’ that the union said it is open to talks.

When questioned  on the ‘current chaos’ happening to northern rail services, Merriman quoted figures from Transport for the North saying that failing connections were costing the Manchester economy alone £8m a week, adding: “It breaks my heart to see the performance so poor, because we’re letting people down.”

Further strikes are expected, following the five days already in 2023, with two more walkouts planned for February 1st and 3rd by the ASLEF union and the National Union of Rail, Maritime and Transport workers.