Transport for London furloughs 7,000 staff to save £15.8million a month as network’s finances are hit by 90 per cent slump in fares
Transport for London will place 7,000 staff on furlough from Monday to save an estimated £15.8million every four weeks, as a result of a huge reduction in passenger numbers because of Covid-19.
Since London entered lockdown on March 23, Tube journeys have fallen by 95 per cent and bus journeys by 85 per cent, meaning the organisation’s main source of income has almost disappeared, TfL said.
London’s transport commissioner, Mike Brown, said: ‘The transport network is crucial in the fight to tackle coronavirus and it will play a similarly vital role in supporting the country’s economy as it recovers from the pandemic.
Commuters wait to board a Jubilee line train at Canning Town station in East London today
‘We have significantly cut our costs over recent years but nevertheless the success of encouraging the vast majority of people to stay at home has seen our main revenue, fares, reduce by 90 per cent.
‘We are now taking steps to use the Government’s Job Retention Scheme to further reduce our costs where work has been paused because of the virus, while at the same time supporting our staff financially.
‘Our work with the Government about the support that we need are ongoing and are constructive. We hope for an urgent agreement so that we can continue to provide the city with the vital transport it needs now and going forward.’
It comes after Sadiq Khan warned on Wednesday that TfL could be forced to cut services unless it receives Government funding in the coming days.
A passenger wears a face mask on board an Underground train at Canning Town station today
The London Mayor said that TfL had lost hundreds of millions of pounds of revenue due to the coronavirus lockdown.
Passenger numbers were down around 95 per cent on the Tube and 85 per cent on buses, cutting income from fares to a fraction of normal levels.
Mr Khan said: ‘Unless the Government gives us a grant, we will not be able to continue to run the service we have.’
He explained that TfL had been using its cash reserves to continue operating services and paying staff.
Passengers walk down a set of stairs at Canning Town station in East London this morning
But he warned it would be ‘really difficult for us to continue the way we have’ unless a deal was secured with the Department for Transport by the end of the month.
He added: ‘We rely upon fares from customers to pay for our services.
‘Unfortunately, the Government cut the operating grant from TfL three years ago. We’re the only public transport system in the world without a grant from central government.’
Despite the huge reduction in overall passenger numbers, concerns have been raised that some services are overcrowded, putting essential workers such as healthcare staff at risk of being infected when they commute.
This issue – which the mayor blamed on staff being unwell or self-isolating – could be worsened if services were cut due to a lack of money.
Andy Burnham and Steve Rotheram, the metro mayors for Greater Manchester and the Liverpool City Region respectively, have called for Government funding to support city centre transport.
Mr Burnham said Manchester’s Metrolink system may have to be suspended as it was losing millions of pounds a month.
Merseyrail, which operates in Liverpool and surrounding areas, was losing £1.2million a week and was being reduced to a core service for essential workers, Mr Rotheram said.
Last month, the Department for Transport (DfT) suspended traditional rail franchise agreements to avoid train companies collapsing, but the metro mayors said the rail systems in their cities had not been given any support.
A DfT spokesman said: ‘We are aware of the challenges faced by transport operators, and continue to work closely with the sector and transport authorities to ensure passengers can make essential journeys.’