Corporate report

Department for Transport annual report and accounts 2023 to 2024 (HTML version)

Published 29 July 2024

For the period 1 April 2023 to 31 March 2024:

• accounts presented to the House of Commons pursuant to section 6(4) of the Government Resources and Accounts Act 2000
• annual report presented to the House of Commons by Command of His Majesty
• ordered by the House of Commons to be printed on 20 July 2024

Permanent Secretary foreword

As I write this, we are in the very early days of a new government. As we turn to new challenges, this report records the challenges and achievements of 2023 to 2024.

Throughout another eventful year I continue to be struck by the dedication demonstrated by colleagues in the central department, in the wider DfT family, and across the transport sector in delivering for the public.

During 2023 to 2024 DfT continued to focus on its priority outcomes of growing and levelling up the economy, improving transport for the user, and reducing environmental impact. More detail on this can be found in the performance report.

This last year has not been without challenges. DfT manages one of the largest and most complex capital portfolios across government and inflation continued to increase costs to both our public bodies and local authorities. The performance of our railways, condition of our roads, and quality of local transport has been high on the agenda.

In October 2023, the government published Network North, which announced the cancellation of HS2 Phases 2a and 2b and the redistribution of £36 billion of funding released by this decision to other regional and local transport priorities principally in the North and Midlands. This was the most significant shift in transport investment priorities in many years. The resulting effort to wind down those Phases of HS2 and begin delivery of the new priorities including additional funding for local roads and bus services and development of a privately funded HS2 station at Euston was a major focus for the department through the latter half of the year.

Work continued on rail reform throughout the year as the Great British Railways Transition Team continued efforts to integrate track and train in order to deliver better services for passengers and opened a second office in Derby in April 2024. In February 2024, the department published a draft bill for pre-legislative scrutiny.

Delivery of our portfolio of major capital investments was a key focus. Key milestones included:

• in January 2024, HS2 Ltd started the construction of Birmingham Curzon Street Station, which will be net zero carbon in operation and the first brand new intercity terminus station built in Britain since the 19th century
• a further £3.9 billion funding injection into the TRU programme, which will help deliver faster, more frequent and reliable rail journeys between Manchester, Huddersfield, Leeds and York
• £8.3 billion of additional capital funding for local highways maintenance activities

We are actively learning lessons from challenges we have seen on HS2 Phase 1a around cost and delivery and will embed these in our wider portfolio.

Key achievements in our work to reduce environmental impact and decarbonise transport included working with Virgin Atlantic to deliver the first transatlantic flight using 100% sustainable aviation fuel on a commercial aircraft; setting out a clear roadmap for Zero Emissions Vehicles through the ZEV mandate; and continuing to progress the £206 million UK Shore and Research and Development programme.

Transport has been a key part of ‘Trailblazer’ devolution deals with Greater Manchester and the West Midlands where working with local partners, including Mayoral Combined Authorities has been critical to success. These deals have included stations across the West Midlands and selected routes in Greater Manchester set to be fitted with technology allowing people to tap-in and tap-out of their local network knowing they will pay the best fare.

DfTc has also played a key role internationally, especially on transport security and resilience. This has included support for international shipping following Houthi attacks on commercial vessels in the Red Sea.

Closer to home DfTc continues to expand its presence outside London, and our staff communities in Birmingham and Leeds have continued to grow, complementing our presence in London, Swansea and Hastings. We were successful in our Disability Confident Reaccreditation and performed strongly in the 2023 Social Mobility Index for employers. Across the transport sector, we also face rapid change and both challenges and opportunities because of new technologies including AI. We will continue to develop our skills and capabilities to respond effectively to these.

Our executive agencies have also continued to deliver important transport services. For example, DVLA launched their flagship online account, allowing drivers to easily access their driving licence and vehicle information online for the first time. Active Travel England responded to approximately 1500 planning consultations in the first 10 months.

During 2023 to 2024 we demonstrated once again our ability to respond effectively and with professionalism to change. This will stand us in good stead as we pivot to the challenges of a new government, where transport has an important part to play delivering on the new government’s missions and a significant reform and legislative agenda.

My thanks to everyone in DfT, in our executive agencies, and in our wider delivery partners for their work in delivering for the government and the travelling public.

Dame Bernadette Kelly DCB

Performance report

Overview: how we have performed

The purpose of this report

This performance report notes DfT’s key successes and challenges against our outcome delivery plan (ODP), based on the priority outcomes as agreed with HM Treasury. The priority outcomes were developed using the principle of the public value framework, published by HM Treasury in 2019, which is a tool for maximising the value delivered from public spending and improving outcomes for citizens. The priority outcomes were confirmed as part of the department’s Spending Review settlement (SR20), and they remained in place as part of the SR21 settlement.

How we are organised

The Department for Transport (DfT) consists of the central department (DfTc) and several public bodies. These are classified according to the level of ministerial control required for them to best perform their functions. These organisations have their own governance structures and publish annual reports, with their accounts consolidated into DfTc’s annual report and accounts.

Executive agencies act as an arm of DfTc and typically carry out services or functions with a focus on delivering specific outputs, with policy set by ministers.

Non-departmental public bodies (NDPBs) and non-ministerial departments (NMDs) are separate legal entities from DfTc. The department usually sets their strategic framework, appoints the chair of their boards, approves all non-executive board member appointments, and appoints their accounting officer.

The wider departmental family includes other public bodies helping to achieve our objectives, which have more autonomy over their own policies and are not consolidated into the group’s financial statements. Further details can be found in the accountability report.

Our governance

DfT’s governance arrangements reflect best practice and the importance of giving Parliament confidence that we use our resources cost-effectively when delivering our priority outcomes. The full governance statement can be found in the accountability report.

DfT public bodies landscape

Our governance

Our risks

Risk management is an integral part of DfT’s work to deliver ministerial priorities. This includes how we manage our programmes and public money, to how we develop policies and work with our public bodies. DfTc’s risks represent the overall risk profile and consider the risks carried and managed by our public bodies.

The governance statement contains details on our internal controls and risk management approach, sets out the principal risks faced by DfTc during 2023 to 2024, DfTc’s ‘Task Force on Climate-Related Financial Disclosure’ and ‘His Majesty’s Treasury Orange Book principles – comply or explain’ statements.

Performance overview

DfT has responsibility for ensuring that the transport system meets the needs of people today and in the future and ensures that it is safe and secure for all those who use it. We do this through our priority outcomes and their associated strategic enablers. We also make sure that we build resilience for issues which may affect the system, such as extreme weather events and pandemics.

As part of delivering the priority outcomes, DfT has a complex capital portfolio. For 2023 to 2024 DfT had a capital budget of nearly £22.2 billion, a full policy agenda and a wide range of direct operational delivery activities which were mainly delivered through our public bodies and the private sector.

Significant elements of transport policy and operations are devolved, either to the devolved administrations or to local government in England. The work includes working with the devolved administrations and their agencies to develop feasibility studies following on from Lord Hendy of Richmond Hill’s independent review of UK connectivity. By taking a UK-wide overview of the strategic transport network, this workstream seeks to deliver the benefits of improved connectivity to the whole of the UK, supporting the effective operation of the UK’s internal market and making sure that administrative borders do not inhibit investment or economic growth.

Priority outcomes

SR21 set out priority outcomes for each department, together with performance metrics that measure progress in delivering these outcomes. The priority outcomes represent DfT’s medium to long term objectives, measured in terms of real-world impacts.

DfT agreed 3 priority outcomes as part of SR21 settlement, which are supported by 4 strategic enablers.

DfT’s 3 priority outcomes

1. Growing and levelling up the economy: improving connectivity across the UK and growing the economy by enhancing the transport network, on time and on budget.
2. Improving transport for the user: ensuring that the transport system is safe, reliable, joined up and accessible, whilst also building transport user and supplier confidence.
3. Reducing environmental impacts: decarbonising transport, meeting air quality and biodiversity targets and adapting to climate change, as we work across government to achieve Net Zero commitments.

DfT’s 4 strategic enablers

1. Being an excellent department: being a well-run department with a strong focus on effective delivery and building the capability of our people.
2. International: boosting our global influence, maximising trade and delivering our transport aims through effective international engagement.
3. Safety and security: ensuring a safe and secure transport network for everyone.
4. Science and technology: harnessing innovation, science and technology in transport to deliver our objectives.

Financial overview from the Director General for the Corporate Delivery Group

Introduction

The department’s initial spending plans for 2023 to 2024 were agreed with HM Treasury through Spending Review 2021, with statutory authority for final budgets granted by Parliament via the estimates process. Budgets are set in accordance with HM Treasury’s budgeting framework for central government bodies and our financial statements are prepared on an accruals basis in accordance with the government Financial Reporting Manual (FReM).

This report provides a high-level overview of our financial performance, with table 1 summarising spend against the final control totals voted by Parliament at the supplementary estimate and figure 1 showing a breakdown by transport mode.

The final budgets for the year were authorised through the supplementary estimate: this was agreed between the department and HM Treasury in December 2023, at which point the outlook for the final quarter of the financial year remained uncertain.

Table 1: outturn and control totals authorised by Parliament

	2023-24 Budget £m	2023-24 Outturn £m	2023-24 Variance £m	%
Resource DEL	20,363	19,589	774	4%
Of which: Administration	376	362	14	4%
Capital DEL	22,149	22,095	54	0%
Resource AME	4,976	2,774	2,202	79%
Capital AME	83	(126)	209	-166%
Net cash requirement	36,850	32,021	4,829	15%

The budgeting framework for central government is further explained in figure 4.

This chart shows the total DEL and AME spending (net of income) by estimate line, with estimate lines grouped by transport mode. Total DEL and AME spending includes both resource and capital cash spending in addition to non-cash resource costs such as depreciation. Significant variances between budget and outturn are explained in the statement of outturn against parliamentary supply.

Figure 1: colours in the table represent the breakdown of spending by mode

Income and funding

Alongside the supply funding received from HM Treasury described in figure 1, the departmental group received £6.7 billion in income from other sources. These are summarised in figure 2, and more detail can be found in note 4 to the financial statements.

Figure 2: main sources of income received in year

Figure 2.1 below shows the net movement in Income by revenue source in the year ended 31 March 2024. Key movements are discussed below:

Figure 2.1: movement in revenue streams, £m

This year franchised track access income increased due to the lower levels of compensation incurred by Network Rail payable to rail operators in respect of network access issues: these charges are offset against track access income. The higher levels of these charges in the prior year arose from some planned disruption for network maintenance and enhancement, and some unplanned disruption as a result of industrial action. In addition, track access charges are indexed upwards as prescribed by the ORR.

Regulated rail fare increases for the year were set significantly below the rate of inflation. The train operating companies are outside the department’s statutory accounting boundary and therefore farebox revenues earned by rail operators are not consolidated into the department’s financial performance. Instead, the department’s financial performance is driven by subsidies paid to rail operators, which reflect the net financial performance between the operators’ revenues and their costs. As shown in note 3.2 to the financial statements, the net subsidy from the department required to support rail services continued to reduce in 2023 to 2024, although the level of subsidy remains above the baseline assumed in Spending Review 2021 primarily as a result of changes in consumer demand since the pandemic and the impact of sector industrial action.

Expenditure

The departmental group incurred £33 billion of expenditure in 2023 to 2024 compared to £30 billion in the previous year. Figure 3 shows the headline movements in expenditure during the year.

Figure 3: movements in expenditure in 2023 to 2024

Grants include support payments to Transport for London (TfL), bus and light rail operators and amounts issued to local authorities for investment in local transport and local roads improvement. Subsidies to the bus sector increased in 2023 to 2024, due to the department’s support for the £2 bus fare cap throughout the financial year and the introduction of the Bus Service Operators Grant, a discretionary grant given to eligible community transport operators to help them cover some of their fuel costs. In addition, the department increased grant funding to local authorities for local transport schemes, including specific new funding allocations relating to the Network North announcement in October 2023, through which the department reprioritised some planned spending away from HS2 and towards local transport projects. Grants from the department supported increased investment in the Plan for Drivers and local electric vehicle charging infrastructure. These initiatives were partially offset by the ending of legacy COVID-19 grant support schemes.

Finance costs primarily represent interest charges on legacy debt owed by the group to bondholders. The debt supported investment in infrastructure projects relating to the railway assets now held by Network Rail Ltd and High Speed 1 Ltd. These finance costs decreased in 2023 to 2024 due to a reduction in index linked finance costs on the bonds. The increase in other costs primarily reflects a higher non-cash charge for deferred tax in 2023 to 2024, arising from accelerated depreciation in Network Rail.

Depreciation is a non-cash cost reflecting consumption of assets. Depreciation increased in 2023 to 2024 following the full quinquennial revaluation of the railway network on a depreciated replacement cost valuation basis (see financial statements note 5.1). The higher replacement cost identified in this revaluation drives a corresponding increase in depreciation for the year. Impairment costs increased by £888 million in 2023 to 2024, primarily driven by 2 major strategic decisions around the future of the transport network.

Firstly, in October 2023 the government announced the cancellation of HS2 Phase 2. This announcement also reconfirmed Euston station as the London terminus of HS2 (London to Birmingham), however HS2 Euston station will now be rescoped from a 10-platform design to a 6-platform design. In the Network North announcement, the future funds previously planned for investment in HS2 Phase 2 were reprioritised towards other local transport projects. Cancellation of Phase 2 required an impairment of those costs which were previously capitalised towards the scheme. The financial statements therefore report impairments for Phase 2a (Birmingham to Crewe) of £713 million, Phase 2b West (Crewe to Manchester) of £137 million and Euston station 10-platform design of £153 million. There were no impairments arising in relation to Phase 2b East, as this element of the project had not yet reached the capitalisation threshold at the date of the Network North announcement. Some of these impaired project costs may be reusable towards alternative transport projects, however such projects are at an early stage of development and would not yet reach the accounting threshold for capitalisation of expenditure on a standalone basis. The department and HS2 Ltd have archived relevant Phase 2 design and development works. Further detail is provided in note 3.4 to the financial statements.

Secondly, in April 2023 the government announced the cancellation of future smart motorway schemes. At the date of this decision, National Highways had incurred £62 million of early project works towards these future schemes, which had been capitalised to assets under construction. These costs are impaired in the financial statements for 2023 to 2024.

Capital investment

Capital investment included continued delivery of the Road Investment Strategy by National Highways, the Network Rail enhancements programme and construction of HS2 between London and Birmingham. These are the department’s 3 main directly delivered infrastructure portfolios which incur capital spending.

Alongside these, we have continued to invest at a local level, including via grant funding to local authorities and Mayoral Combined Authorities. We have continued to invest in projects to decarbonise the transport system – such as cycling and walking infrastructure, zero emission buses, electric vehicle infrastructure and low carbon fuels. In November 2023, the Civil Aviation Authority granted permission for the first transatlantic flight using fully sustainable aviation fuel.

Total managed expenditure

Total managed expenditure (TME) represents the total funds spent by the department against a series of different budget types, which are depicted in figure 4. A comparison of TME in 2023 to 2024 to recent years is shown in figure 5, with 2023 to 2024 values corresponding to the statement of outturn against Parliamentary supply. Net cash requirement (NCR) is a separate Parliamentary control total which limits the cash funding departments can draw from the Exchequer to finance their TME spending for the year.

Our budget framework

HM Treasury sets the budgetary framework for government spending.

Figure 4: our budgetary framework

The total amount the department spends is referred to as total managed expenditure (TME); which splits into:

• annually managed expenditure (AME) and
• departmental expenditure limit (DEL)

AME expenditure is typically volatile or demand-led. AME budgets are agreed with HM Treasury on an annual basis. DEL expenditure reflects the cost of delivering front-line and back-office activities. Long-term DEL budgets are set through Spending Reviews which usually occur every 3 to 5 years.

Budgets are also classified into resource and capital.

Resource DEL includes a further split into:

• programme budgets for frontline services, and
• admin budgets such as back office functions

Figure 5: TME and NCR by year

Our resource DEL covers the expenditure associated with the day-to-day running of the group, including the costs our arm’s length bodies incur to support delivery of our major projects and to operate and maintain the elements of the transport network they are responsible for.

Our capital DEL covers the major capital programmes described above and other important investment that is intended to enhance the transport system and create future economic growth. Network Rail, National Highways and the core department received material levels of capital income: these relate to contributions from other bodies towards capital projects.

TME includes our non-cash budget requirements, such as: depreciation in resource DEL; deferred tax and interest accretion charges in resource AME; and capital provisions in capital AME. Falling inflation decreased the costs associated with servicing Network Rail’s external debt. Most of the debt is index-linked and total accretion interest on the outstanding balance of Network Rail’s debt was £1.3 billion in 2023 to 2024 (£2.8 billlion in 2022 to 2023). As RPI has decreased, the cost related to the bonds has also decreased.

Figure 5 includes our net cash requirement for the year, which represents the department’s total call on taxpayer funds from the Exchequer to finance its spending activities for the year.

Figure 5.1 shows how our biggest areas of capital spend – HS2, Network Rail and National Highways – have evolved in recent years. Spending plans for 2024 to 2025 reflect amounts agreed in main estimate for 2024 to 2025. HS2’s capital spending varies by year in line with the construction profile of the project. Capital spending by Network Rail and National Highways is more stable between years, in line with the long-term investment programmes agreed through the Office of Rail and Road (ORR) Control Period and the Road Investment Strategy mechanisms respectively. In October 2023, ORR issued its final determination for Network Rail’s Control Period 7 funding from 1 April 2024 to 31 March 2029, providing security of long-term investment in the UK rail network. Road Investment Strategy 2 provides long-term investment in the strategic road network to 31 March 2025, at which point Road Investment Strategy 3 will commence.

Figure 5.1: key areas of capital spend

Assets and liabilities

Assets	2023-24 £m	2022-23 £m	Increase / (Decrease) £m
Property, plant and equipment, including leases and assets held for sale	668,007	600,764	67,243
Receivables	2,574	2,578	(4)
Loans	2,494	2,616	(122)
Investments in equities and associates	1,191	1,089	102
Cash	610	455	155
Inventories	1,209	1,151	58
Derivatives	72	94	(22)
Investment properties	227	231	(4)
Pension asset	92	0	92
Intangible assets	363	450	(87)
Total assets	676,839	609,428	67,411

Liabilities	2023-24 £m	2022-23 £m	Increase / (Decrease) £m
Borrowings	33,272	33,195	77
Payables	8,670	8,454	216
Pension liability	719	883	(164)
Deferred tax	7,715	6,450	1,265
Provisions	1,628	1,693	(65)
Derivatives	153	231	(78)
Total liabilities	52,157	50,906	1,251
Net assets	624,682	558,522	66,160

Assets

The department had £677 billion of assets at 31 March 2024, an overall increase of £67 billion on the prior year. Notable changes are set out below.

As at 31 March 2024, £472 billion of assets related to the Railway Network in Great Britain and £160 billion related to the strategic road network in England, which are the responsibility of Network Rail and National Highways respectively. In addition, the department held assets under construction relating to HS2 of £31 billion. The increase in assets was driven largely by £18 billion additions and £61 billion of revaluation increases to property, plant and equipment assets, offset by £10 billion of depreciation charges and £1 billion of impairment costs.

Additions to the Rail Network comprised £3 billion of enhancements and £4 billion of renewals. Major schemes included: Transpennine improvements, East West Rail, Midland main line improvements, East Coast Main Line improvements; and in Scotland, improvements relating to the Inverness to Aberdeen and Edinburgh to Glasgow lines. Additions to AUC include £7 billion relating to HS2 construction works undertaken during the year. Additions to the strategic road network included: £2 billion of capital enhancements including spending from the designated funds used to improve the surroundings of the network, supporting sustainability, protecting quality of life and the environment and delivering safety and congestion relief schemes; and £1 billion of asset renewals. Significant additions included the M6 Lune George structure scheme and the M62 Ouse Bridge Joint replacement project. The road and railway networks are valued using a depreciated replacement cost valuation methodology as required under HM Treasury financial reporting rules. The revaluation gains represent increases in the estimated cost of constructing a modern equivalent infrastructure asset. The department’s approach to valuing these assets is set out in notes 1 and 5 to the financial statements.

Investments in equities and associates comprise the department’s shareholdings in entities which are not consolidated into the financial statements, primarily London and Continental Railways Ltd, DfT OLR Holdings Ltd, Network Rail Insurance Ltd and NATS Holdings Ltd. The £0.1 billion increase in the value of these investments represents the improvement in those entities’ own financial position during the year. This included the acquisition in May 2023 by DfT OLR Holdings Ltd of the net assets relating to Transpennine Express, following the government’s decision that this rail contract should be taken into public ownership.

Loans decreased by £0.1 billion, primarily driven by £0.1 billion repayment of loans for the Crossrail project made available to the Greater London Authority (GLA) and Transport for London (TfL).

Retirement benefit assets of £0.1 billion represent defined benefit pension schemes which are reporting a surplus of scheme assets over actuarial liabilities at 31 March 2024. Further details are provided in note 24.

Liabilities

The department held £52 billion of liabilities at 31 March 2024 (2022 to 2023: £51 billion). These comprise:

• Network Rail has £28 billion (2022 to 2023: £28 billion) of debt payable to bondholders, reflecting third party borrowing entered into before the company joined the departmental group. In addition, £4 billion of debt (2022 to 2023: £4 billion) is payable to institutional investors holding bonds issued by the department’s finance companies, LCR Finance plc and CTRL Section 1 Finance plc. This stock of debt matures by 2052
• £9 billion of trade and other payables (2022 to 2023: £8 billion)
• Network Rail has a total deferred tax liability of £8 billion. This has increased by £1 billion since the prior year, due to accelerated tax depreciation and revaluation of the railway network
• £1 billion of defined benefit pension liabilities, which is £0.3 billion (net of pension surpluses separately disclosed as assets) lower than last year due to the net effect of changes in key financial assumptions on assets and liabilities. The pension schemes accounted for within this liability are described in note 24 to the accounts: this liability excludes civil servants in the PCSPS, for which accounting rules require that liabilities are recognised in year as the employer contributions fall due
• £2 billion of provisions, of which £1 billion is for land and property purchases along the HS2 route
• £1 billion of lease liabilities in respect of right-of-use assets (2022 to 2023: £1 billion)

Further details can be found in notes 13, 18 to 22 and 24 to the financial statements.

The department has £2 billion of contingent liabilities and £13 billion of remote contingent liabilities, many of which were designed to promote investment in transport assets by offering guarantees and indemnities to the supply chain in the event that assets do not produce the expected revenues. The value of contingent liabilities tends to decrease over time as many are based on the remaining value of underlying assets, such as rolling stock and depots. The department also has several contingent liabilities that cannot be quantified.

Figure 6: increase / (decrease) in liabilities during the year £m

Future outlook

HM Treasury’s Spending Review 2021 set future year budgets up to and including 2024 to 2025. Capital DEL investment will remain high as we continue to deliver through the lifecycle of our major programmes.

Figure 7: total net expenditure (exc. depreciation) split between capital and resource net expenditure

Future investment in our major transport networks is secured through long term funding settlements. The next Spending Review will set wider departmental funding allocations beyond 2024 to 2025, providing a new baseline for investment in the transport sector in the years ahead.

Nick Joyce

Director General, Corporate Delivery Group

Performance analysis

This performance report outlines DfT’s key achievements and challenges against the delivery of our priority outcomes.

Some activities delivered during 2023 to 2024 included:

• following the previous government’s announcement of the cancellation of High Speed Two (HS2) Phase 2a, Phase 2b Western Leg and HS2 East and to redistribute £36 billion to alternative transport investments (known as Network North), action was taken to demobilise cancelled phases, develop a privately funded approval to Euston and re-invest funds released for inclusion in the local highways network
• plans for City Region Sustainable Transport Settlements (CRSTS) were re-baselined and increased funds announced for CRSTS 2
• The Automated Vehicles Act which establishes a comprehensive legal framework to enable the safe deployment of self-driving vehicles on our roads, received Royal Assent
• the zero emission vehicle (ZEV) mandate was introduced in the UK
• a consultation was launched on how we can continue to support motorists by making driving as straightforward, accessible, environmentally responsible and safe as possible
• DfT supporting Virgin Atlantic and industry partners in delivering the first transatlantic flight on a commercial aircraft powered by 100% sustainable aviation fuel (SAF)
• The Merchant Shipping (Watercraft) Order 2023 to enable prosecution of those who use a powered watercraft, dangerously was introduced

In addition to the planned work throughout the year DfT has responded to and delivered on additional areas of work not included in the ODP, which are included in this report within the relevant priority outcome or strategic enabler, such as the UK’s sanctions against Russia including implementing enforcement decisions against Russian assets.

The priority outcomes DfT delivers in many cases are interlinked. For example, the £7 million tech fund launched to boost innovation within ‘improving transport for the user’ will also help support ‘reducing environmental impact’ by decarbonising freight. The announcement by the Department for Education (DfE) on new grants for state-funded schools and nurseries will also help support ‘improving transport for the user’.

Growing and levelling up the economy

Improving connectivity across the UK and grow the economy by enhancing the transport network on time and on budget.

Introduction

This priority outcome aims to enable economic growth and spread opportunity across the UK. In the long run the aim is to boost productivity, living standards and influence the location of growth by increasing the concentration of economic activity and attractiveness of an area.

Areas of work

Key progress made under this priority outcome is summarised below.

Local transport

Local transport accessibility provides access to social and economic opportunity. DfT extended the £2 bus fare until 31 December 2024, funded local roads and Bus Service Improvement Plan (BSIPs), gave indicative allocations for existing city regions as part of CRSTS 2, and announced the new £4.7 billion Local Transport Fund (LTF). LTF was planned to fund a wide range of projects from 2025 to improve the local transport connections that people rely on every day, particularly across towns, villages and rural areas.

Local transport infrastructure

DfT’s Levelling Up Fund (LUF), CRSTS and the Transforming Cities Fund (TCF) programmes allows eligible city regions and local authorities to invest in transport.

CRSTS is providing funding to develop and deliver mass transit schemes, including the expansion of the Merseyrail network in Liverpool City Region using new battery powered trains. In October 2023, LCR delivered a new station at Headbolt Lane which will be served by battery trains, this was originally part of the TCF programme, but was integrated into the CRSTS programme in 2022. Following this trial, the region is using its CRSTS funding to explore using the technology to expand the Merseyrail network to new locations.

As part of the Network North Command Paper in October 2023, £8.5 billion of additional funding was made available for CRSTS 2. Additionally, LUF Round 3 allocations were announced in November 2023, funding a further 8 transport projects across a range of transport modes totalling £150 million.

See the local highways section for more information.

Rail

DfT has continued to progress projects outlined within the Integrated Rail Plan (IRP), including HS2 (London to Birmingham), East West Rail and projects within the Restoring Your Railway programme. helping unify labor markets, encourage investment and boost growth and productivity.

The Integrated Rail Plan

The IRP sets out a plan for delivering new projects and major upgrades across the rail network. Network North subsequently cancelled HS2 Phase 2a, Phase 2b Western Leg and HS2 East but augmented the commitment to Northern Powerhouse Rail (NPR) and the Midlands Rail Hub (MRH), whilst retaining plans to deliver the TransPennine route upgrade, Midlands Main Line electrification and a major upgrade of the East Coast Main Line.

Future network planning

Working with Network Rail, DfT seeks to support commitments made in the IRP and Network North and develop a pipeline of investment in rail into the 2060s.

DfT has started to identify opportunities to improve connectivity in and between the Midlands, Yorkshire and the North-East, including those in NPR.

Milestones delivered:

• studies into cross-border connectivity on the East and West Coast Mainlines and with Wales were completed and subsequent activities identified for further development

Midlands Rail Hub

The Midlands Rail Hub aims to improve connectivity between towns and cities across the region with with £123 million remitted to Network Rail to prepare detailed designs and a full business case for the first phase (between Birmingham, Cardiff, Bristol and Worcester), returning with a future delivery decision. This scope could be complete by the early 2030s.

East Coast Main Line

On the East Coast Main Line, the infrastructure upgrades forming the basis of the £1.2 billion Enhancements Programme have now been largely delivered, although the benefits of this work are yet to be realised through introduction of a recast route timetable, the implementation of which is yet to be realised.

Beyond this the IRP committed to investing up to an additional £3.5 billion for route enhancements, seeking to upgrade and improve line speeds and capacity. Several schemes are in development, including a package of enhancements at Darlington Station where construction has now commenced and due to complete by the end of 2025.

High Speed 2 (HS2)

HS2 is the UK’s new high-speed railway that will provide fast, frequent, reliable, and low-carbon journeys between London and Birmingham.

In October 2023, a revised approach to HS2 was announced and Network North was launched. This revised approach included the decision to cancel Phase 2a (West Midlands to Crewe), Phase 2b Western Leg (Crewe to Manchester) and HS2 East (West Midlands to East Midlands) due to increased costs.

DfT is continuing to deliver the new railway between Euston in central London and the West Midlands as planned, with 4 new stations in total. HS2 tracks will end with 2 branches in the Midlands; one to Curzon Street station in central Birmingham and one to Handsacre Junction, near Lichfield. From there, a connection to the West Coast Main Line will enable HS2 trains to travel to Liverpool, Manchester and Scotland.

With delivery underway, high-speed services remain on track to commence between 2029 and 2033.

Milestones delivered:

• in December 2023, HS2 celebrated having supported more than 4,000 unemployed people back to work on the programme
• in January 2024, HS2 Ltd started the construction of Birmingham Curzon Street Station, which will be net zero carbon in operation and shall be the first brand new intercity terminus station built in Britain since the 19th century
• as at March 2024, HS2 Ltd had planted 950,000 trees on Phase 1, with an aim to plant 7 million trees and shrubs by the time construction completes, creating a ‘green corridor’ along the railway

Northern Powerhouse Rail (NPR)

The NPR programme aims to improve connectivity between Liverpool, Warrington, Manchester Airport, Manchester Piccadilly, Huddersfield, Leeds, and York, and between Bradford and Leeds. By constructing new stations and upgrading rail lines and stations, this improvement will:

• provide better connectivity between the cities of the north and other significant economic centres
• improve passenger experience and reliability whilst reducing levels of crowding across the northern rail network
• contribute to the achievement of Net Zero 2050 through the electrification of the north’s rail infrastructure and driving modal shift from congested roads

DfT engaged with local leaders who expressed support for NPR to serve Warrington Bank Quay and Manchester Airport and for using broadly the previously proposed HS2 route between Millington and Manchester. In March it was announced that this would be the primary option for the next stage of development for the route between Liverpool and Manchester. In May, a reinstruction motion was debated (and agreed) in Parliament for the High-Speed Rail (Crewe to Manchester) Bill to allow for the bill’s scope to be focused only on the elements required for NPR.

DfT is building on the Transpennine route upgrade as a first phase of NPR. The programme is currently seeking £79.39 million (in addition to the £34 million released in February 2024) to update the strategic outline business case and design and develop core scope between Sheffield, Leeds and Bradford.

In October 2023, Network North expanded NPR’s scope to include Sheffield and Hull and improve connectivity between Manchester – Sheffield and Bradford.

East West Rail (EWR)

EWR is a new railway which aims to unlock growth for Oxford, Milton Keynes, Bedford, Cambridge and beyond. It will aim to transform connectivity for residents and businesses, supporting economic growth and local housing plans.

Connection Stage 1 (CS1): DfT has provided £1.3 billion for the delivery of EWR CS1, which is currently in construction. It is due to enter service in 2025 and will create a direct rail service from Oxford to Bletchley and Milton Keynes.

The March 2024 Budget committed to accelerating the introduction of a direct service between Oxford and Bedford by the end of the decade.

Milestones delivered:

• CS1 – the track installation was completed in March 2024

Restoring Your Railway (RYR)

The objective of RYR is to reopen railway lines and stations across England and Wales. Key areas of the programme includes:

• the Northumberland line, expected to open to passenger services later on in 2024 and which will initially connect Ashington, Blyth and Seaton Delaval to Newcastle, providing opportunities for jobs, education and leisure
• restoring passenger services between Bristol and Portishead, providing better access to employment opportunities, growing the regional economy and alleviating road congestion – the project involves upgrading an existing freight line, reinstating 3 miles of track and reopening 2 stations (Portishead and Pill)

Milestones delivered:

• the New Stations Fund (part of the RYR programme) helped to deliver Marsh Barton station in Exeter and Thanet Parkway in Kent, seeing over 40,000 journeys and more than 36,000 journeys being made from those stations respectively within the first 6 months of operation

Transpennine route upgrade (TRU)

TRU is a £10.4 to £11.2 billion modernisation programme for the key East-West rail link across the north of England from Manchester to York, via Huddersfield and Leeds.

In December 2023, DfT announced £3.9 billion funding injection into the TRU, which will help deliver faster, more frequent and reliable rail journeys between Manchester, Huddersfield, Leeds and York. This means that £6.9 billion has been committed to the programme to date.

Milestones delivered:

• in August 2023 programme business case approval 2 was delivered
• electrification and track works are nearing completion at the route peripheries between Manchester Victoria and Stalybridge, and between York and Church Fenton – this will facilitate the operation of electric services between Manchester Victoria and Stalybridge by the end of the year and between York and Church Fenton by 2026
• in December 2023, capability works along 3 diversionary routes across the north were completed meaning trains can continue to run whilst significant works are carried out on the North TransPennine route over the remainder of the decade

Roads

The Automated Vehicles Act received Royal Assent on 20 May 2024, establishing a comprehensive legal framework to enable the safe deployment of self-driving vehicles on our roads.

Major road network (MRN) / large local majors (LLM)

The MRN/LLM programme consists of schemes prioritised by sub-national transport bodies. These schemes support economic growth, unlocked land for housing, support active travel and public transport and support wider networks.

The impact of inflation and rising material costs in construction, including labour and materials, continue to impact local authorities’ budgets and result in schemes being re-prioritised or re-scoped to meet the funding available.

Milestones delivered:

• in February 2024 the third river crossing at Great Yarmouth – the Herring bridge – was opened to the public and will help grow the regional economy
• 4 schemes have progressed through full business case stage, allowing construction to start, including A38 Bromsgrove route enhancement programme, A34 Cheadle – Handforth, A164 Jocks’ lodge junction improvement scheme and Tyne Bridge and Central Motorway (A167)
• 11 MRN / LLM local authority major schemes have been progressed to the next stage of development through the business case process

Strategic road enhancement

The second Road Investment Strategy (2020 to 2025) included a £10 billion investment in the strategic road network (SRN) delivering major enhancement schemes, as well as other investment through designated funds to address specific issues, for example to mitigate the impact of the road network on its surrounding environment.

Legal challenges to planning decisions have impacted the delivery of some schemes which were due to start construction during the 2023 to 2024 financial year.

See strategic roads – renewals and maintenance for more details.

Milestones delivered:

• construction started in December 2023 on the A428 Black Cat to Caxton Gibbet improvements scheme, which will see £1 billion of investment to reduce congestion and improve journey times
• 4 schemes were completed which will increase capacity, reduce congestion and improve safety. These were the improvements to the:
  • M56 junctions 6 to 8 smart motorway
  • A47 Harfrey’s roundabout, Great Yarmouth junction improvements, including a new roundabout
  • A585 Windy Harbour to Skippool new bypass
  • M6 Junction 10

This brings the total number of schemes opened during this road investment period (2020 to 2025) to 23, with a further 15 in construction as of March 2024.

Connected and automated mobility

The aim of the Centre for Connected and Autonomous Vehicles (CCAV) is to secure the industrial and economic benefits of connected and automated mobility (CAM), contributing to economic prosperity via greater productivity, increased employment opportunities and enhanced investment in a high growth sector. CCAV would make sure there were high standards for the safety and security of CAM, maintaining public confidence and establishing regulatory certainty for industry. Moreover, societal benefits of CAM will be delivered to improve the quality of transport provision across the country. See CAM for further details.

The Automated Vehicles Act became law in May 2024. The act paves the way to enabling the safe introduction of self-driving vehicles onto Great Britain’s roads, drawing on more than 4 years of expert review by the Law Commission.

Milestones delivered:

• in November 2023, we updated and clarified the automated vehicle trialling code of practice, which governs the trialling of self-driving vehicles with a safety driver on Great Britian roads

Strengthening the Union

Strengthening the Union seeks to deliver the benefits of improved connectivity to the whole of the UK by taking a UK-wide overview of the strategic transport network. It proactively builds relationships with the devolved administrations and other stakeholders, to help us understand the issues at local, regional and national level.

The response to Lord Peter Hendy’s independent Union connectivity review (UCR) summarised the policy changes, the projects announced in Network North and new studies to improve connectivity across the UK.

Milestones delivered:

• DfT’s response to Lord Hendy’s Union Connectivity Review was published in December 2023

Grow and level up the economy: priority outcome indicators

The Infrastructure and Project Authority’s assessment of GMPP projects is expected to be published after this report and DfT will review and assess findings upon publication. More generally, DfT continues to develop methods to better assess progress against this priority outcome, which is complex due to the long-term nature of impacts and challenge in directly attributing such impacts solely to transport interventions. The indicator below was agreed as part of the SR21 settlement to show performance against the priority outcome.

The percentage of transport infrastructure projects in the GMPP that DfT assesses as on track to delivery. Programmes that are assessed ‘as on track to delivery’ are those that are rated by the project authority assessment as green or amber.

2020-2021	2021-2022	2022-2023	2023-2024
96%	91%	91%	94%

Improving transport for the user

Ensuring that the transport system is safe, reliable, joined up and inclusive; whilst also building passenger and supplier confidence.

Introduction

This is the second of DfT’s 3 priorities. ‘Improving transport for the user’ is critical in making sure DfT enables a transport system that meets the user’s needs and addresses what users care about most. DfT works to put the needs and expectations of current and potential users, both passengers and freight customers, at the heart of the transport system. In doing this we think about end-to-end journeys, not just individual transport modes, acknowledging many journeys are made using more than one type of transport and people use different transport modes at different times for different reasons.

In July 2023, DfT published the transport user personas, an evidence-based tool to help make sure that people were put at the heart of decision-making within DfT.

Like the other priority outcomes for reporting purposes below, we have noted progress this year by workstream, however, many of these workstreams are interlinked and should not be considered in isolation.

Areas of work

Key progress made under this priority outcome is summarised below.

Rail

DfT has delivered benefits for passengers with over one million flexi season tickets sold since the scheme’s launch, alongside the continued rollout of digital ticketing. In addition to this, pilots of pay as you go (PAYG) ticketing were agreed with Greater Manchester and West Midlands authorities at the end of 2023 in line with the commitment in the trailblazer deeper devolution deal. These schemes will allow multi-modal integrated ticketing.

Rail reform

DfT has delivered to benefit customers and the taxpayer ahead of legislation to establish Great British Railways.

An example of this is the announcement made in December 2023 of a rail freight growth target of at least 75% growth in net freight tonne kilometres by 2050.

Milestones delivered:

• in February 2024, DfT published the draft Rail Reform Bill for pre-legislative scrutiny – with written and oral evidence sessions concluded in May 2024
• in April 2024, Great British Railway Transition Team opened a second office in Derby and work is underway to identify potential sites in the city for the Great British Railways headquarters

Rail renewal

Rail renewal focuses on 2 main aspects:

• the periodic review to determine Network Rail’s funding and outputs for each 5 year funding period
• the ongoing monitoring of Network Rail’s delivery of the previous settlement and associated issues

The Periodic Review 2023 (PR23) was concluded in April 2024, with the next 5 year funding period Control Period 7 (CP7) having started in April 2024. Network Rail are now working to deliver its £44.1 billion settlement for operational railway infrastructure. Control Period 7 will run until March 2029. The periodic review process is led by the Office of Rail and Road (ORR), who provide scrutiny, challenge, and assurance of Network Rail’s plans.

Network Rail’s delivery of its settlement for Control Period 6 has concluded, with effective volumes of renewals (a metric used to determine Network Rail’s performance against complex plans for renewing the network). Network Rail has overachieved its efficiency target of £3.5 billion, as set during periodic review 2018, by about £0.5 billion, having committed to an additional ‘stretch’ during Control Period 6. However, Network Rail’s performance has recently been poor in other areas areas, with notable examples in its Wales and Western region, and it is responding to these challenges under ORR’s oversight.

Milestones delivered:

• in October 2023 published ORR’s final determination review 2023 – the basis for ORR’s regulation of Network Rail in Control Period 7
• publication of Network Rail’s delivery plan for CP7 in March 2024

Rail passenger services

DfT focuses on addressing, reversing the decline in train service performance and so improving the service for the user.

The National Rail Contracts (NRCs) contain a range of enhanced performance incentives. The transition to NRCs for train operating companies has been delivered through dedicated tranches of projects.

There remain ongoing challenges in improving train performance, including the impacts of industrial action on overall performance.

In May 2023 DfT announced that the TransPennine Express’s (TPE) contract would not be renewed or extended and the company was brought into Operator of Last Resort from 28 May 2023. This decision was made because the service level provided by TPE was unacceptable, including significant disruption, regular cancellations and poor levels of communication.

DfT also introduced regulations for passenger rail minimum service levels, as part of the Strikes (Minimum Service Levels) Act 2023, which came into force in December 2023.

The National Union of Rail, Maritime and Transport Workers (RMT), Transport Salaried Staffs’ Association (TSSA) and Unite unions all accepted pay offers for 2022 to 2023 bringing the current national dispute to an end, and with negotiations on a pay and reform offer for 2023 to 2024 moving to train operators. Associated Society of Locomotive Engineers and Firemen (ASLEF) are the only trade union continuing national industrial action and impacting services.

Milestones delivered:

• in 2024, Class 730 and 701 trains entered operation on West Midlands Railways and a limited number were launched on Southwestern Railway respectively

Freight and logistics

In June 2022, DfT published the Future of Freight plan. Developed with industry, the plan adopts a cross-modal approach to raise the status of freight and logistics to create a sector that is economically efficient, reliable, resilient, environmentally sustainable and valued by society.

Government and industry have been working collaboratively on delivery across 5 priority areas:

1. Undertake the work necessary to identify a National Freight Network.
2. Enable the transition to Net Zero through the provision of energy infrastructure for freight and logistics operators.
3. Working with the Department of Levelling Up, Housing and Communities (DLUHC) to ensure the planning system appropriately reflects the needs of the sector.
4. Attract and retain sufficient people and skills in the sector’s workforce.
5. Develop a pipeline of innovation to improve sector efficiency and sustainability.

Implementation of the plan has been governed by the government-industry co-chaired Freight Council, supported by a Freight Energy Forum, People and Skills Delivery Group and Freight Innovation Cluster.

Milestones delivered:

• in April 2023, established the Freight Energy Forum in partnership with industry to build confidence and accelerate the deployment of zero-emission technologies
• in April 2023, launched the Freight Innovation Fund – the year one cohort of small and medium-sized enterprises have secured £97 million of investment after completing trials with industry partners to commercialise freight focused technology solutions – this includes drones to improve island-to-island connectivity in the Orkney Islands and electric assisted vehicles, which is developing a 4-wheel, electrically assisted, lightweight delivery vehicle to help reduce road emissions
• in July 2023, DfT published the freight, logistics and the planning system: call for evidence (CfE) in collaboration with DLUHC to understand from stakeholders what works well, what could be improved and how DfT can better promote best practice – the CfE received over 100 responses from stakeholders and is being used to better understand the issues, opportunities and barriers facing the freight and logistics industry when engaging with the planning system
• in July 2023, established the Future of Freight People and Skills Delivery Group to address barriers to recruitment and retention in the sector

Roads

All motorists desire shorter journey times, reliability, and predictability, a comfortable safe road surface and good quality of information around road works and incidents.

DfTc set out a 30-point plan to fix the issues people experience when driving and to smooth out the administration around motoring.

The 30-point plan addresses on 5 key issues of concern to drivers:

1. Smoother journeys.
2. Stopping unfair enforcement.
3. Easier parking.
4. Cracking down on inconsiderate driving.
5. Helping the transition to zero emission driving.

These measures build on other activities that DfT continues to pursue, for example on road condition.

Milestones delivered:

• in January 2024 published guidance on allowing motorcyclists using bus lanes
• in February 2024, DfT and DfE announced new grants for state-funded schools, nurseries and more to help with rollout of electric vehicle chargepoints to be accelerated – this supports the ‘reducing environmental impact’ priority outcome
• in March 2024 published setting local speed limits which included; updated good practice guidance on setting 20mph speed limits so that they are only used where appropriate; draft statutory guidance on low-traffic neighbourhoods (LTNs) alongside the LTN review report; £50 million to upgrade and tune up traffic signals; and noise camera research showing the success of this technology

Road condition and resilience: local highways

The capital funding allocated by DfT to most local highway authorities in England supports them to provide a well maintained and resilient local highway network. This includes maintaining and repairing carriageways, cycleways, footpaths, upgrading of streetlights, traffic signals and ensuring local bridges and other infrastructure are safe and resilient to severe weather impacts. DfT also provides policy and guidance on effective asset management, maintenance and strategies for an efficient network.

In October 2023, DfTc announced £8.3 billion of additional capital funding for local highways maintenance activities and allocated £150 million of this in 2023 to 2024 and introduced new reporting requirements on local highway authorities to ensure transparency on how the funding was spent.

Road condition and resilience: strategic roads – renewals and maintenance

Maintaining a high performing SRN is crucial for the nation’s economy and for connecting people and businesses. The SRN carries a third of all road traffic and two-thirds of all heavy goods vehicle movements, despite being 2% of the total road length in England.

The performance specification for the second Roads Investment Strategy (RIS) (2020 to 2025) has 6 priority outcome areas, one of which is to have ‘a well maintained and resilient network’ which includes several performance indicators monitoring performance not only on the condition of the road surface and other structures, but also roadside technology, which will become an increasingly important area of focus.

National Highways delivers a significant operations, maintenance and renewals programme (c.£9.5 billion over the 5 year RIS2 period) which aims to make sure the performance targets for the SRN are met and provide road users with safe and reliable journeys. Some of the key risks to delivery include the impact of inflation and an ageing network which is affected by more extreme weather conditions.

National Highways also continued its delivery of its structures programme including working on Bamfurlong Lane, which carries a local road over the M5.

Milestones delivered:

• National Highways installed / renewed 195 miles of road safety barrier renewals and resurfaced 1057 lane miles of asphalt road surface
• National Highways renewed 1909 technology assets (e.g., cameras, message signs, signals and Motorway Incident Detection, Automatic Signalling Radar)

These upgrades ensure that the SRN remains fit for purpose for all road users, today and into the future.

Local public transport experience

Local public transport experience seeks to improve people’s travel experience on buses, metro and rail.

A condition of the August 2022 Transport for London (TfL) long-term funding settlement required TfL to become financially sustainable, which was defined as TfL’s ability to cover, from sources available to it, including the consideration of potential new sources of income and committed business rates retention:

• operating expenditure
• capital renewals
• servicing and repaying debt and capital enhancements’

TfL is not expected to solely finance major capital enhancements and renewals from operating income, as is consistent with other transport authorities. In December 2023, DfTc agreed to provide £250 million of capital funding to support TfL’s major capital projects until March 2025 and following ongoing DfTc monitoring and scrutiny of TfL’s financial progress against the settlement conditions, TfL is now financially sustainable.

DfTc worked with HM Treasury and ORR to assess TfL’s capital funding needs for major capital projects and in December 2023, DfTc agreed to provide £250 million of capital funding to support TfL’s major capital projects until March 2025.

On buses, in May 2023, DfTc announced funding worth £140 million from July 2023 to March 2025 to support bus operators through Bus Service Operators Grant Plus.

Milestones delivered:

• Bus Service Improvement Plan (BSIP) funding was extended in May 2023 to all local authorities and local transport authorities in England (outside London) through BSIP Plus and an extra £1 billion was announced in October 2023 to further support the delivery of BSIPs in England. £150 million was allocated to local authorities in the North and Midlands and we are in the process of releasing that funding now. Once released, it will also support bus services and fares initiative, in the same way as BSIP Plus

Fares and ticketing

This aims to improve the passenger experience by making it easier and simpler to buy a bus, metro or rail ticket in England, including finding the best fares and better access to digital ticketing. Better integrated ticketing and simpler fares will encourage more people to choose public transport.

Milestones delivered:

• the rolling out of barcode ticket technology across the railway estate was completed, allowing customers to purchase digital tickets
• pilots of PAYG ticketing were agreed with West Midlands and Greater Manchester authorities, with delivery planned for 2025
• the launch of LNER’s simpler fares pilot in January 2024, following the roll-out of single leg pricing on its network in 2023
• a concessionary fares communications drive was launched in July 2023 with the aim of increasing the use of free bus passes

Aviation and international travel

The flightpath to the future strategy published in May 2022 is a medium-term framework for the UK aviation sector to make future UK aviation cleaner, greener and more competitive than ever before. It sets out an action plan for key issues including recovery, workforce and skills, connectivity, global impact, innovation and decarbonisation.

Milestones delivered:

• in October 2023, DfTc refreshed the air passenger travel guide to give passengers more clarity on their rights, whilst also legislating to enshrine rules on compensation and assistance for passengers in the event of denied boarding, cancellation, or long delay of flights through The ‘Aviation (Consumers) (Amendment) Regulations 2023’

Accessibility, equality and inclusion

DfT is committed to a transport system that is inclusive and accessible to all. This is done through delivering DfT’s strategic direction for accessible travel as set out in the Inclusive Transport Strategy (as the UK’s population ages, we face the key strategic challenge of providing for a truly accessible transport system that will help people stay active and independent). This is done through delivering and steering DfT’s compliance with the Public Sector Equality Duty and Equality Act 2010.

Milestones delivered:

• introduction of The Public Service Vehicles (Accessible Information) Regulations 2023 mandating audible and visual information on buses
• tackling loneliness through transport pilots, which aimed to develop an evidence base for how transport can help to alleviate loneliness, concluded in July 2023. Evaluation of the programme is now complete and outputs are being prepared for publication
• launched pilots in the 5 areas that were receiving a share of £2.5 million DfTc funding for new transport safety officers – these would aim to tackle low level anti-social behaviour on transport and address violence against women and girls

Improve transport for the user: priority outcome indicators

The effects of the pandemic and subsequent travel restrictions impacted some figures in 2020 and 2021 – for example the temporary general reduction in road transport vehicle miles travelled was seen alongside an associated reduction in reported road traffic collisions. Taking such things into consideration, generally performance across most metrics has been broadly consistent, although this is not the case for all measures. DfT continued to make progress on the Inclusive Transport Strategy and many of the original commitments have now been delivered.

The below indicators were agreed as part of SR21 settlement to show performance against the priority outcome. Unless otherwise stated, metrics have been drawn from the sources referred to in DfTc’s outcome delivery plan. Historical data may not match previous publications due to minor amendments through data revisions. Historical versions are available by request.

Since 2020, satisfaction with walking provision in local areas has remained consistently high, with 78% of users reporting being very or fairly satisfied each year. In contrast, satisfaction with cycling provision has fluctuated, at 25% in 2020, increasing to 42% in 2021, and then decreasing to 34% in 2022, indicating greater variability and generally lower satisfaction levels compared to walking.

Percentage of non-frequent bus services running on time:

In the year ending March 2023, the percentage of non-frequent services in England that ran on time was at 80%. This was the lowest reported figure since the year ending March 2009, a decrease compared to the year ending March 2022 and continuing the downward trend from the year ending March 2021, which was the highest reported figure since the data was first published. ‘On time’ is defined as between 1 minute early and 5 minutes 59 seconds late.

Percentage of users satisfied with their most recent journey, England (SRN)

Year ending Dec 2021	Year ending Dec 2022	Year ending Dec 2023
67%	73%	71%

Percentage of non-frequent bus services running on time, England

2020-2021	2021-2022	2022-2023
89.1%	83.9%	79.9%

Percentage of users very or fairly satisfied with their local roads, England

2020-2021	2021-2022	2022-2023
43%	48%	43%

Percentage of users very or fairly satisfied with provision in their local area, England

	2020	2021	2022
Cycling	25%	42%	34%
Walking	78%	78%	78%

Average (mean) delay on strategic roads (seconds per vehicle mile), England

Year ending Dec 2021	Year ending Dec 2022	Year ending Dec 2023
8.50	9.30	10.5

In 2023, delay on the strategic road network saw a noticeable increase compared to 2022 and is higher than levels seen in 2019 pre-pandemic. We do not have certainty on the cause but believe there are several factors. National Highways has suggested a greater proportion of goods vehicles which are speed limited (also seen in the weekly DfT traffic figures), roadworks and changes to driving habits may all be contributing to the increase.

Average (mean) delay on local A roads (seconds per vehicle mile), England

Year ending 2020	Year ending 2021	Year ending 2022	Year ending 2023
40.2	43.4	45.5	47.9

Speed and delay on Local ‘A’ road network have stabilised towards trends and value observed pre-pandemic. (Additionally, we saw road resurfacing programs and re-routing impacts from the SRN affecting areas on a localised basis).

Percentage of recorded station stops arrived at ‘on time’ (early or less than one minute after the scheduled time), Great Britain

Oct-Dec 2022	Jan-March 2023	April-June 2023	July-Sept 2023	Oct-Dec 2023
62%	68%	71%	69%	62%

Number of people killed or seriously injured in reported road traffic collisions, by road user, Great Britain

	2020	2021	2022
Pedestrians	4,722	5,393	6285
Pedal cyclists	4,476	4,464	4146
Motorcycle users	4,798	5,574	5967
Car occupants	8,992	10,384	11499
Bus and coach occupants	164	198	293
Goods vehicle occupants	654	804	802
Other vehicles	360	634	745
All road users	24,166	27,450	29,741

Percentage of local authority roads considered for maintenance, England

	2020-21	2021-22	2022-23
‘A’ roads and motorways	4%	4%	4%
‘B’ and ‘C’ roads	6%	6%	6%

Number of trips per person per year, by main mode and disability status

	2020	2021	2022
Aged 16-59, with a disability	621	672	781
Aged 16-59 without a disability	809	816	911
Aged 60+, with a disability	544	526	602
Aged 60+, without a disability	787	837	932

Reported road casualties Great Britain, annual report: 2022:

Since 1979, there has been a general downward trend in the number of people killed on roads in Great Britain with a flatter trend in the decade since 2010. In 2022, road casualties showed signs of increasing and a returning to pre-pandemic trends, compared to 2020 and 2021 when casualty numbers were low, largely as a result of periods of lockdown leading to a reduction in road traffic

In reported road collisions in Great Britain in 2022, there were an estimated:

• 1,711 fatalities, a decline of 2% compared to 2019
• 29,742 killed or seriously injured (KSI) casualties, a decline of 3% compared to 2019
• 135,480 casualties of all severities, a decline of 12% compared to 2019
• 5 road fatalities per billion vehicle miles traveled, up 2% compared to 2019

Reducing environmental impacts

Continuing to lead on decarbonising transport, meeting air quality and biodiversity targets and adapting to climate change, as we work across government to deliver net zero commitments.

Introduction

‘Reducing environmental impacts’ is the third priority outcome for DfT. It directly supports delivery of the UK’s legally binding climate targets, including reaching net zero by 2050 as set out in the Climate Change Act 2008 and many legal duties and targets in the Environment Act 2021. There is an environmental aspect to all transport policy and by extension to the work of almost everything we do in DfT.

DfT is committed to reducing the UK’s carbon emissions from use of transport, reducing carbon emissions created from its transport infrastructure, protecting, and enhancing biodiversity, adapting transport infrastructure to the effects of climate change, and reducing air pollution from all forms of transport.

Areas of work

Key progress made by workstreams under this priority outcome in 2023 to 2024 is summarised below. Additional information on DfT’s work on decarbonisation can be found in the sustainability report.

As with all the priority outcomes reporting is done through the lens of individual workstreams below, although many of the workstreams have interdependences with other workstreams, both within this priority outcome and across the others.

Decarbonising all modes of transport

Transport remains the UK’s largest carbon emitting sector, responsible for 28% of domestic greenhouse gas emissions in 2022. DfTc published ‘Decarbonising transport: a better, greener Britain’ (2021), The Net Zero strategy (2021) and Carbon budget delivery plan (2023).

In October 2023, DfTc announced the winning projects benefiting from a share of the £200 million zero emission HGV and infrastructure demonstrator programme.

In March 2024, DfTc announced that 25 Local Transport Authorities had successfully secured up to £142.8 million of zero emission bus regional areas (ZEBRA 2) funding, which will support the introduction of up to 955 zero emission buses.

Milestones delivered:

• in November 2023, DfT supported Virgin Atlantic and industry partners in delivering the first transatlantic flight on a commercial aircraft powered by 100% sustainable aviation fuel (SAF)
• legislation entered into force in November 2023 to improve the consumer experience when using EV public charging in 4 key areas:
  • mandating contactless payments and payment roaming
  • pricing transparency
  • open chargepoint data
  • 99% reliability for rapid chargepoints
• A £70 million pilot for the Rapid Charging Fund. Specifically focused on improving the rapid charging network at motorway service areas in England, was open for applications from December 2023 to February 2024. Applications are currently being assessed before the funds are allocated
• new legislation requiring 80% of all new cars sold and 70% of all new vans sold in 2030 to be zero emission entered into force in January 2024. There are now over 1 million battery electric cars on the UK’s roads
• launched new grant funding to support the installation of chargepoints in state funded schools and other education establishments; and grant funding for households without driveways to install a cross-pavement charging solution
• plug in taxi and motorcycle grants for new purchases were extended by a further year to the end of financial year 2024 to 2025
• DfTc is delivering the £381 million Local Electric Vehicle Infrastructure (LEVI) Fund to local authorities across the country to make charging available for drivers without off-street parking. In February 2024, DfTc announced that payments to 5 councils for charging projects have been approved, totalling more than £14.2 million. In March 2024, DfTc announced that further payments to 44 additional councils had been approved, worth over £185 million

Delivering for a changing environment

The move towards a fully electrified road fleet will continue to improve air quality from reduced exhaust emissions. Alongside this, DfT took forward cutting-edge research to understand how to better measure and control brake and tyre wear emissions, including from zero exhaust emission vehicles.

The general trend in NO2 concentrations continues to show an improving picture. Latest published figures (up to the year 2022) show that from 2010 to 2022 emissions of nitrogen oxides (NOx) fell by 48%. However, DfT recognises there is more to do, and in partnership with the Department for Environment, Food and Rural Affairs (Defra) has provided more than £550 million to help local authorities to develop and implement measures to address their NO2 exceedances in the shortest possible time.

Last year, 2023, was the hottest year on record globally. We continue to witness an increase in frequency and intensity of extreme weather events in the UK due to climate change and the impact of these events is evident on transport. DfT is strengthening transport adaptation policy and launched a consultation on DfT’s first transport adaptation strategy in April 2024.

As of 1 November 2023, there is now a legal duty to have due regard to the Environmental Principles Policy Statement when making policy, which will help to protect and enhance our environment and preserve England’s unique natural assets, all within the context of building resilience to biodiversity loss and the effects of our changing climate.

In line with the ‘biodiversity duty’ established by the Environment Act 2021, DfTc has undertaken cross-modal consideration of what actions it can take to conserve and enhance biodiversity across its functions.

In September 2023 DfT announced £60 million investment to transform the school run for 2 million children and in March 2024 announced a further £101 million investment to provide even more people, especially in rural and deprived areas the choice of how to travel by walking and cycling.

Recognising the importance of the wider active travel funding landscape, DfT worked collaboratively with other funding streams to support active travel related bids and make sure that critical safety issues can be designed out at the earliest possible stage.

This investment follows ATE officially becoming a statutory consultee on all planning applications for developments equal to or exceeding 150 housing units, 7,500m2 of floorspace or an area of 5 hectares. ATE has received and responded to approximately 1500 planning consultations in the first 10 months and this figure includes detailed responses on developments totalling 2000 homes.

Milestones delivered:

• in May 2023, National Highways published the Environmental Sustainability Strategy, which committed to delivering a more sustainable SRN
• in July 2023, Defra published the Third National Adaptation Programme (NAP3) – DfTc coordinated the transport section, fulfilling the legal obligation to address the transport-related risks identified in the third climate change risk assessment
• in September 2023, National Highways partnered with Surrey County Council and Guildford Borough Council to launch a £11 million novel grant scheme to improve air quality on the A3 in Guildford
• in November 2023, the Rail Safety and Standards Board published The Sustainable Rail Blueprint, which is the industry-wide framework for realising sustainable rail and is rail’s first unified plan, providing a whole-industry view as far as 2050
• 2023 to 2024 saw the completion of the first year of the 3 year, £30 million, UK-wide Live Labs 2 programme funded by DfT, which concentrates on how to decarbonise local highways infrastructure and assets
• in April 2024, Network Rail published 4 independent reports commissioned by its new extreme weather resilience task force, which make recommendations on a whole-system response to extreme heat to make sure the rail network is more resilient to extremely hot weather

Infrastructure decarbonisation

DfT is committed to managing and reducing the carbon emissions generated by the construction, operation, and maintenance of our transport infrastructure portfolio. DfTc is working closely with its key delivery bodies (Network Rail, National Highways and HS2 Ltd) to ensure that we are planning and delivering our infrastructure portfolio in the most carbon-efficient way.

Milestones delivered:

• improved the quality and consistency of DfT’s Whole Life Carbon data to support business case approvals, and improved the guidance available to infrastructure projects to manage and reduce carbon in line with industry standards

Reducing environmental impacts: priority outcome indicators

The 2021 transport decarbonisation plan and the Net Zero Strategy put the sector on an ambitious path to net zero by 2050, and we are making good progress against the Climate Change Committee and Independent Review of Net Zero recommendations. Domestic transport emissions in 2020 and 2021 were impacted by COVID-19 and the resultant restrictions on movement; they were 11% lower than 2019 and 15% lower than 1990.

In 2023, statistics show that new registrations for zero emission cars rose by 2% since 2022. To support this transition, DfT supported increased availability of public charging devices, with an increase in publicly accessible charge points per 100,000 by more than 47% in England over the course of 2023.

On active travel, levels of walking and cycling increased significantly in 2020 when compared with previous years, following the impacts of the pandemic and subsequent changes to working patterns. The latest mid-year estimates for 2023 indicate that cycling activity per person has returned to similar levels to those in 2019. In comparison, walking has shown increases in both miles travelled and trips taken (up 5% and 4% from 2019, respectively).

DfTc has established Active Travel England (ATE) to oversee quality active travel infrastructure and ensure people have a real choice on whether to use active travel for their day-to-day journeys.

These indicators were agreed as part of the SR21 settlement to show performance against the priority outcome. Unless otherwise stated, metrics have been drawn from the sources referred to in DfT’s outcome delivery plan (ODP). Historical data may not match previous publications due to minor amendments through data revisions. Historical versions are available by request.

Greenhouse gas emissions from domestic transport, including HGVs (million tonnes of CO2 equivalent), UK

Dec 2020	Dec 2021	Dec 2022
101.3	111.4	113.20

Percentage of new registrations of cars and vans that are (i) Zero Emission Vehicles (ii) Ultra Low Emission Vehicles in the United Kingdom

	Oct-Dec 2022	Jan-Mar 2023	Apr-June 2023	July-Sep 2023	Oct-Dec 2023
Zero emission vehicles (ZEV)	20%	14%	15%	15%	15%
Ultra low emission vehicles (ULEV)	26%	19%	20%	21%	23%

Percentage of cars and vans that are (i) zero emission vehicles (ii) ultra low emission vehicles in the United Kingdom

	Oct-Dec 2022	Jan-Mar 2023	Apr-June 2023	July-Sep 2023	Oct-Dec 2023
Zero emission vehicles (ZEV)	1.8%	2.0%	2.2%	2.4%	2.6%
Ultra low emission vehicles (ULEV)	2.9%	3.2%	3.5%	3.8%	4.1%

Average (mean) number of cycling trips as proportion of total trips, England (per cent)

2020	2021	2022
3%	2%	2%

Total number of cycling stages, England (millions)

2020	2021	2022
1196	875	926

Average (mean) number of walking trips as proportion of total trips, England (%)

2020	2021	2022
32%	31%	31%

Average (mean) annual number of walking stages per person, England

2020	2021	2022
281	279	318

Estimates of normalised passenger and freight carbon dioxide equivalent (CO2e) (emissions g/CO2e per passenger km and g/CO2e per net freight tonne km)

Mode	Apr 2020-Mar 2021	Apr 2021-Mar 2022
Passenger Co2e per km	146.5	47.7
Freight CO2e per km	26.5	25.1

Percentage of local buses by emissions standards to which they adhere, England

Emissions standard	2021-22	2022-23
Zero emission	4%	5%
Euro VI (highest regulated emissions standard for buses)	58%	61%
Euro V	19%	18%
Euro IV	8%	6%
Battery electric	3%	4%
Compressed natural gas/biomethane	1%	1%
Euro III	6%	4%
Hydrogen fuel cell	0%	0%

Number of publicly accessible charge points per 100,000 population, by region

	March 2023	June 2023	Sep 2023	Dec 2023
All – England	60.5	66.7	75.2	82.0
Rapid – England	11.1	12.3	13.1	14.9
Non-rapid – England	49.4	54.4	62.1	67.1
All – North East	52.6	62.6	58.0	60.3
Rapid – North East	12.7	13.3	12.7	14.6
Non-rapid – North East	39.9	49.3	45.3	45.7
All – North West	33.3	39.5	42.5	48.9
Rapid – North West	9.01	9.9	10.8	13.2
Non-rapid – North West	24.2	29.6	31.7	35.7
All – Yorkshire and the Humber	36.61	45.0	46.0	48.7
Rapid – Yorkshire and the Humber	10.6	12.7	13.6	13.9
Non-rapid – Yorkshire and the Humber	26.0	32.3	32.5	34.8
All – East Midlands	40.8	42.8	45.8	50.4
Rapid – East Midlands	11.7	12.8	14.9	17.1
Non-rapid – East Midlands	29.3	30.0	31.0	33.7
All – West Midlands	53.0	58.9	64.7	69.1
Rapid – West Midlands	12.9	14.7	16.2	18.4
Non-rapid – West Midlands	40.1	44.2	48.5	50.7
All – East of England	39.3	49.6	52.0	56.2
Rapid – East of England	9.7	11.6	11.9	14.9
Non-rapid – East of England	29.6	38.0	40.1	41.3
All – London	145.3	152.0	192.8	210.5
Rapid – London	10.3	10.7	11.2	11.9
Non-rapid – London	135.0	141.3	181.6	198.6
All – South East	55.8	60.6	62.9	66.9
Rapid – South East	12.2	13.5	13.7	15.2
Non-rapid – South East	43.6	47.1	49.2	51.7
All – South West	47.7	51.1	53.8	63.0
Rapid – South West	11.8	13.2	14.2	17.0
Non-rapid – South West	35.9	37.9	39.6	46.0

Our strategic enablers underpinned our departmental priority outcomes to make sure DfT was set up and operated in a way that facilitated it to deliver.

‘Being an excellent department’ includes making sure that DfT controlled its costs. ‘International’ encompasses our work outside the UK and in collaboration with international partners. Ensuring the ‘safety and security’ of our transport system plays a role in providing assurance to the transports users. ‘Science and technology’ makes sure DfT’s work is supported by the best new thinking. There are other key enablers for DfT contributing to delivery, however the 4 strategic enablers identified in this plan have particular strategic significance.

Being an excellent department

‘Being an excellent department’ is DfT’s first strategic enabler which aims to enable continuously improving and innovative delivery, benefits from true multi-site working, and invest in the long-term health of the organisation through being a department where people feel well supported, can reach their potential, learn and enjoy working. This in turn will help deliver complex transport challenges, maximising public money for the greatest outcomes for the taxpayer.

Areas of work

Workforce, skills and capacity

DfTc is focused on making our workforce inclusive and representative of the communities we serve. This includes ensuring staff feel trusted and empowered to deliver, and have the required skills, knowledge and capability to conduct their duties effectively to reach their potential.

Workforce capacity

Workforce capacity pressures have been challenging in DfTc. Changes implemented in the last 12 months have enabled DfTc to reduce the severity of capacity and capability risks through:

• continued use of a crisis response cohort, providing immediate response for any future crises
• development of a robust in-year workforce planning approach and the introduction of quarterly workforce reviews to assure capacity and capability
• the launch of the strategic workforce plan
• the launch of DfT’s retention plan to mitigate staff turnover
• a renewed focus on career development with supporting tools; development of a skills and capability plan and development of an employee value proposition and employer brand to position DfTc prominently in key markets of Birmingham, Leeds and London

Skills

A revised line manager capability offer was launched in January 2024, this included a ‘getting the basics right’ foundation offer and leadership for grade 6s and grade 7s.

DfTc fully rolled out the SCS ‘Elevate’ leadership programme, which contributed to our SCS offer, as well as supporting priorities such as ‘Places for Growth’.

We have continued to deliver the ‘skills and capability plan’, which includes launching a new mentoring platform. We have also implemented the recommendations from DfTc’s workplace adjustment review, including helping staff to communicate needs to policy holders for better resolution of issues.

Technology

DfTc has worked to improve digital capability and has successfully rolled out an improved ministerial and official correspondence management system.

Processes, delivery and efficiency

DfT’s structure has evolved over recent years to deal with new challenges and with the world of transport changing fast, fuelled by technology, and changing social expectations. During 2023 to 2024 we restructured our directors general groups taking effect from 1 April 2024 as follows:

• Public Transport and Local Group
• Rail Services Group
• Major Rail Projects Group
• Road Transport Group
• Corporate Delivery Group
• Aviation, Maritime and Security Group (reports to the Second Permanent Secretary)
• Decarbonisation, Technology and Strategy Group (report directly to the Second Permanent Secretary)

This change will help DfT think more strategically in relation to driving whole network performance, regulating markets and standards; supporting and enabling new technologies and streamline our decision making.

Efficiency

DfT has conducted an efficiency review to identify DfTc specific opportunities, including cross-referencing improvements and projects with the ‘Your ideas’ campaign which promotes suggestions for improvement across the department from staff. From this campaign several projects have been reviewed and this has led to the implementation of improvements to processes, a more standardised approach across the business support offer and on-site tech support.

A rapid review of the corporate services across DfTc and our executive agencies was completed, which identified a range of potential opportunities for improvements. These opportunities are being reviewed and prioritised to align to existing programmes in DfT.

Strengthening our ability to deliver across the UK including Places for Growth

DfTc is committed to have a strong presence across the country as a national organisation, which draws on the talent across the UK, so that we better represent the communities we serve.

DfTc continues to deliver on the ‘Places for Growth’ agenda and has committed to significantly grow our presence in Birmingham, Leeds, and Edinburgh to at least 688 roles, including 41 SCS roles by 2025. This complements our existing offices in London, Swansea, and Hastings.

This year DfTc has increased the proportion of our workforce outside of London from 22% to 26%, with over 521 members of staff based in Birmingham and Leeds at the end of March 2024.

Additionally, we have used departmental cohort events and leadership programmes to test and improve our handling of these changes with our staff, this has also included sessions during the Elevate Senior Leadership programme and through engaging directly with senior leadership teams.

Confident leaders supporting change and driving delivery

During 2023 to 2024 a new ‘SCS Employee Experience team’ was created, which brought together the delivery arms of the SCS employee lifecycle (recruitment, talent, performance and development) to make sure leaders are supported from induction to offboarding, and robust governance processes are in place to make sure leaders are clear on their responsibilities. Further information can be found in the governance statement.

Activities below have been delivered, with an aim to increase leadership capability and delivery focus of our senior leaders.

In May 2023, DfTc launched ‘Elevate’, a leadership development programme for all senior leaders, supporting the creation of confident leaders who can support change and drive delivery. The programme is underpinned by the DfT leadership statement and is made up of a launch event, 3 full-day modules, a supplementary session on ‘Bullying, harassment and discrimination for senior leaders’, 3 action learning sets and a graduation event. The modules focus on:

• leading confidently through change
• leading excellent hybrid-working teams
• inclusive and empowering teamwork

By March 2024, 18 cohorts of Elevate were launched (275 SCS) and 120 SCS finished the programme. By September 2024, ‘Elevate’ will have been rolled out across the DfT SCS community.

DfT’s leadership statement will continue to underpin the development offer across 2024 to 2025, with a focus on supporting leaders to manage change and drive delivery as well as creating a collective leadership community who can deliver across boundaries. As well as the SCS offer, DfTc encouraged SCS leaders to use the Leadership College for Government, which offers training for Civil Service and public sector leaders throughout their career.

A diverse and empowered workforce which represents the communities we serve

As an employer, DfTc aims to provide a healthy and inclusive working environment for all. We aspire to be a place where people feel; fully supported; they can achieve their potential and they can learn and enjoy their work.

In July 2022, DfTc created a 3 year diversity, inclusion and wellbeing strategy 2022 to 2025 which comprises 4 overarching priorities:

1. Representing the communities we serve.
2. Being confidently inclusive.
3. Maximising potential for all.
4. Building a transport network that works for everyone.

To deliver the strategy DfTc completed extensive work on tackling bullying, harassment and discrimination, including developing a departmental implementation plan, working in partnership with Cabinet Office and Loughborough University.

Gender pay gap

There is a requirement as part of the Public Sector Equality Duty to release gender pay gap information every year.

In the year to March 2024, the mean gender pay gap (GPG) for the DfT group remained stable at 10.7% while the median gender pay gap increased slightly by 0.4 percentage points to 13.3%. Positively, the mean gender bonus gap (GBG) moved significantly in favour of women from 7.1% in 2022, to -10.4% in 2023.

What DfT is doing to address the gender pay gap?

DfT is committed to meaningful and sustained efforts to continue to reduce our GPG as outlined in DfT’s diversity, inclusion and wellbeing strategy 2022 to 2025. Examples of actions taken to date include:

• refreshing job advert accessibility and language
• creation of an agency gender pay gap dashboard at DVLA to monitor GPG throughout the year
• engagement with programmes supporting women into historically male-centric professions such as IT and engineering
• successful coaching and mentoring programmes focusing on enabling diverse talent to succeed within our organisation and overcome barriers to progression

People have opportunities to thrive, grow and reach their potential

The project delivery profession continues to build project delivery capability with roll out of the Government Online Skills Tool, a skills assessment platform and accreditation for project delivery professionals.

The ‘Transport policy essentials’ course rolled out in June 2023, was designed with a multidisciplinary team of experts from Coventry University and tailored for DfT policy capability.

The annual talent cycle in DfTc continues to be embedded to staff on the Talent and Career Management Hub which promotes bi-annual career conversations and personal development plans. To support talent and career development, 7 talent programmes have run across the year, with a mix of central and DfT-bespoke offers.

This year DfT saw a 4 percentage point increase in positive responses to the learning and development theme of the Civil Service People Survey.

Apprenticeships

Work has continued within DfT to increase the number of apprenticeships. DfT is working to deliver against its apprenticeship strategy and meet the requirements set out in the Civil Service apprenticeships strategy 2022 to 2025.

As of 31 March 2024, across DfT, 2.2% of the group headcount were apprentices on a programme and 39% of these apprentices were from lower socio-economic backgrounds, with the overall percentage of apprentices in each region largely reflecting the civil service workforce size.

Employee engagement

The annual Civil Service People Survey looks at civil servants’ attitudes to and experience of working in government departments. Every year, a civil service benchmark report is published along with a summary of the ministerial departmental scores.

The Civil Service People Survey engagement score for DfT and our executive agencies overall remained the same in 2023 in comparison to 2022 and 2021 at 58%.

There was a mixed picture this year across DfTc and our executive agencies. DfTc remained the same in 2023 from 2022 at 64%. Driving and Vehicle Licencing Agency (DVLA) remained the same with a score of 54%. There were reductions in the engagement index at Driving and Vehicle Standards Agency (DVSA) (1pp lower) and Vehicle Certification Agency (VCA) (4pp lower). An increase was seen at Maritime and Coastguard Agency (MCA) (1pp higher). DfT has used the data through the survey to inform actions at both a local and departmental level to address key themes. ATE scores were included in 2023 for the first time with an engagement index of 77%.

	2019	2020	2021	2022	2023
Civil Service	63	66	66	65	65
DfTc and executive agencies	61	64	58	58	58
DfTc	64	67	68	64	64
DVLA	63	63	53	54	54
DVSA	57	62	53	54	53
MCA	65	68	66	65	66
VCA	63	68	65	62	58
ATE	-	-	-	-	77

	2019	2020	2021	2022	2023
Civil Service	63	66	66	65	65
DfTc and executive agencies	61	64	58	58	58
DfTc	64	67	68	64	64
DVLA	63	63	53	54	54
DVSA	57	62	53	54	53
MCA	65	68	66	65	66
VCA	63	68	65	62	58
ATE	-	-	-	-	77

People centred systems and policies

DfT is committed to providing people centred systems and policies for our people. In line with the shared services strategy for government, DfT transitioned into the Unity cluster at the end of February 2023, creating a partnership with HMRC and DLUHC. DfT Shared Services joined Unity Business Services in June 2024.

Unity will create a single shared services function for the 3 departments, operating from a single technology platform. All 3 departments have been brought together to design a common operating model, share business process services and implement standardised, common enterprise resource planning service, finance, and HR shared services.

International

Introduction

‘International’ is the second strategic enabler and is focused on boosting UK influence, through a targeted and outward-facing approach.

DfT has extended its international influence and continues to champion the transport sector’s contribution to boosting UK trade, exports, and inward investment. For example, securing the best outcome for transport services in negotiating trade agreements and successfully promoting transport-related exports and inward investment.

Areas of work

International influence

London International Shipping Week (LISW)

DfTc’s involvement in LISW is a public demonstration of support for the UK maritime industry and helps businesses up and down the country to drive investment and grow the economy. At LISW23, DfT was directly involved in over 80 events.

Milestones delivered:

• the Zero Emission Vessels and Infrastructure (ZEVI) competition, which awarded over £80 million of match funding to 10 projects supported by 52 UK organisations across the UK
• the winners of the £7 million Engineering and Physical Sciences Research Council competition were announced to establish a virtual Clean Maritime Research Hub
• a maritime, decarbonisation and tech MOU with key EU partners
• training provision for Ukrainian cadets

UK Presidency of the International Transport Forum (ITF)

The UK held the ITF Presidency from June 2022 to May 2023, culminating in hosting the ITF Annual Summit. The UK’s exhibition stand helped to promote several small and medium UK transport businesses. The UK’s Presidency succeeded in meeting our objectives, which were;

• inclusive transport (to highlight individuals’ backgrounds and needs across transport modes to ensure transport is attractive, affordable, and sustainable for all)
• safe and resilient transport (promoting sustainable transport that is resilient when facing uncertain requirements, and is safe for all users)
• connected transport (to improve connectivity and ensure the economy can grow by enhancing transport networks and removing transport barriers)
• innovative transport (promoting UK as a world leader in transport innovations)
• greener transport (promoting greener transport providing environmentally friendly sustainable solutions)

International aviation

DfT’s commitment to working with countries and regions from all over the world to support international aviation was illustrated by the active leadership role played by the UK at International Civil Aviation Organization’s (ICAO’s) Third Conference on Aviation Alternative Fuels in November 2023, galvanising support for strong ambition on sustainable aviation fuel and working constructively with other states to secure a consensus global outcome.

The UK also plays a leading role in Europe’s key international aviation institutions, the European Civil Aviation Conference (ECAC) and EUROCONTROL. The UK Director General Civil Aviation is a Vice President of ECAC and a member of the Coordinating Committee where they hold the role of ‘focal point for the environment, and a Vice President of EUROCONTROL’s Provisional Council. The UK is also involved in ECAC’s wider work programme (including work on air safety and security) and chairs the largest number of working groups of any ECAC state.

Rail investment

During 2023 to 2024, DfTc further deepened bilateral co-operation on technical knowledge and best practice by signing MOUs with partners in Chile, Czech Republic, and Saudi Arabia. DfTc continued to build relations with The Republic of Türkiye, following the success of UK export finance in supporting Turkish High-Speed Rail projects.

Transport decarbonisation

DfTc contributed to COP28 which resulted in a global agreement to transition away from fossil fuels for the first time; a commitment crucial in achieving The Paris Agreement goal to limit global warming to 1.5°C. DfTc successes in the lead up to and at COP28 included playing a leading role at the International Maritime Organization’s (IMO) 80th Marine Environment Protection Committee meeting in July 2023 in securing the agreement of all 175 Member States to the IMO Greenhouse Gas (GHG Strategy). This set a target of achieving net zero emissions from shipping by or around 2050 and reducing emissions by 20 to 30% in 2030 and 70 to 80% in 2040.

War in Ukraine

Two years on from Russia’s illegal invasion, DfT continues to support Ukraine to maintain the resilience of its transport sector and prepare for reconstruction. DfT participated in the Ukraine Recovery Conference in London in July 2023, emphasising the importance of private sector involvement in Ukraine’s transport reconstruction.

DfT is working with Ukraine’s Ministry for Communities, Territories, and Infrastructure Development to identify opportunities to engage the UK private sector, including members of the UK-Ukraine Transport Partnership, in reconstruction projects. DfT is also implementing a skills package for Ukrainian transport workers, to make sure critical aviation and maritime skills are maintained throughout the war. We have continued to enforce the transport sanctions implemented against Russia and Belarus, as well as enhancing the UK’s broader transport sanctions capability.

Red Sea crisis

The shipping sector continues to demonstrate its resilience and flexibility in response to geopolitical developments. DfT upheld its security responsibilities to UK-flagged vessels in response to the attacks by Houthi rebels on commercial vessels transiting the Red Sea, including support in line with the requirements of the International Ship and Port Facility Security Code.

Boosting prosperity through trade and investment

Free trade agreements

DfTc led the transport services aspects in 8 UK’s trade agreement negotiations, as part of The UK and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with India; Canada; Gulf Cooperation Council; Mexico; Switzerland; Israel; and the Republic of Korea. Entry into force of the agreement will take place once the UK and CPTPP Parties have finished their legislative processes. We expect this to happen in the second half of 2024.

Safety and security

DfT’s safety and security is the third strategic enabler and ensures that we remain tightly focused on protecting the users of the transport network. This is central to the work and ethos of DfT, our delivery partners and the transport sector.

Safety

Through taking a ‘whole transport system’ view of safety, we aims to reduce the number of deaths and serious injuries for all road users resulting from road traffic collisions, maintain the UK’s existing high safety standards for aviation, maritime and rail and take the regulatory and other steps needed to enable the safe adoption of new transport technologies including autonomous vehicles and micro mobility.

Road safety

In 2022, there were 1,711 people tragically killed on the roads in Great Britain – down 2% compared to 2019 (the most recent equivalent pre-pandemic year), and there was a total of 135,480 casualties, of all severities – this is 12% lower than in 2019 and is among the lowest level since 1979 (when DfT began reporting road casualty statistics with current definitions and detail).

Overall, in 2022, UK ranked fourth in Europe (after Norway, Sweden and Iceland) and fifth in the world (also behind Japan) in terms of safety.

However, every death is a tragedy and DfT continues to work on a variety of road safety interventions. Since March 2023 DfT:

• invested £47.5 million to improve the safety of 28 of the country’s most high-risk roads.
• in March 2024, funded a further £38.3 million to 17 high-risk roads as part of the Safer Roads Fund
• changed the 20mph limits guidance to put local consent first
• launched the removal of uninsured drivers’ from compensation consultation in March 2024

Smart motorways

National Highways has been delivering £900 million in RIS2 in further safety improvements on smart motorways. This includes £390 million to construct over 150 additional emergency areas by March 2025.

Aviation safety

The Civil Aviation Authority (CAA) is responsible for the regulation of aviation safety in the UK and DfT acts as its sponsoring department.

DfT’s State Safety Board governance was refreshed, allowing for more effective oversight and challenge of the CAA and other aviation authorities within the UK system. We also delivered 2 statutory instruments, enhancing Civil Aviation safety standards, and ensuring compliance with the updated standards and recommended practices developed by the ICAO. These are The Aviation Safety (Amendment) Regulations 2023 and The Air Navigation (Overseas Territories) (Amendment) Order 2024. In addition, the third Specialised Committee with the EU was completed to discuss aviation safety arrangements between the UK and the EU with some progress in delivering UK aims on air traffic management.

Maritime safety

The Maritime and Coastguard Agency is an executive agency of DfT and is responsible for enforcing standards for ship safety and welfare. An example of this is by promoting and enforcing better safety amongst the 12,000 workers on 5,700 fishing vessels and checking the safety and quality of ships and welfare, certification and training of seafarers operating under the Red Ensign.

To support maritime safety, DfT introduced The Merchant Shipping (Watercraft) Order 2023 to enable prosecution of those who use powered watercraft, such as jet skis, in a dangerous manner and put other water users at risk.

In January 2024, DfT established the Cranston Inquiry that will examine, consider and report on the events of 24 November 2021, when at least 27 people died attempting to cross the Channel in a small boat.

Rail safety

Network Rail is a non-executive public body of DfT and is responsible for ensuring that the railway is safe and reliable.

In 2023 to 2024, DfT consulted and laid regulations to update private level crossing signs on the rail network, which addressed several Rail Accident Investigation Branch (RAIB) recommendations.

DfT also laid regulations to improve oversight of entities responsible for the maintenance of freight vehicles on the rail network, which addressed an RAIB recommendation following the derailment of a freight train in August 2020.

Security

DfT remains a core part of the UK’s national security system and contributes to the integrated review refresh and resilience framework 2023 across the full range of risks we face.

When significant events and incidents happen in the UK or overseas, transport is either affected or is a major part of the response. DfT plans for and co-ordinates response to major events or incidents affecting the transport network. Having supported the arrangements for His Majesty King Charles III Coronation, DfT was involved in other events and incidents including:

• the evacuation of British nationals from Sudan, the Red Sea crisis, and the Israel Palestine conflict
• planning and preparing for severe weather
• responding to protests
• industrial action on the rail network

Beyond responding to events, DfT has several projects and programmes that can mitigate longstanding risks such as terrorism and natural hazards as well as responding agilely to evolving risks arising from geopolitical and geoeconomic shifts, rapid technological change and a changing climate. DfT remains focused on strengthening the underpinning systems that provided resilience to all threats and hazards while balancing this against the need for an efficient and effective transport system.

Milestones delivered:

• maintaining the UK’s robust and effective aviation security system including by working with airports to implement the next generation security checkpoint, using cutting-edge cabin baggage and passenger screening technology and processes to detect and deter potential threats to aviation
• coordinating HMG’s activity to deliver the national maritime security strategy including providing guidance to the shipping and port sectors on mitigations and response actions against a range of threats. DfT also led international activity on maritime cyber security including improvements global standards on maritime cyber security through the IMO
• delivered security compliance regimes for light and heavy rail networks, ports facilities and with the CAA for aviation security as well as for operators of essential service under cyber Network and Information Systems Regulations 2018 (NIS Regulations) to self-assess their cyber resilience
• DfT also supported the refreshed counter-terrorism strategy (CONTEST), serious and organised crime strategy, and national cyber strategy as we work to ensure the UK’s economic security

Science and technology

Introduction

‘Science and technology’ is the fourth strategic enabler for DfT and builds on the previous embedded work that has been done for many years ensuring that science, engineering, innovation and technology feed into policy making and delivery across DfT’s work.

This is a new strategic enabler for DfT and work during 2023 to 2024 has focussed on raising the profile of the science and engineering profession and developing an updated science, innovation and technology plan to set a clear vision for DfT.

From ‘reducing environmental impacts’ to ‘growing and levelling up the economy’ and ‘improving transport for the user’, delivering DfT’s priority outcomes requires innovation, new ideas, technologies and approaches. The core R&D programme continues to support emerging technologies (including AI) and innovation activity across DfT. More broadly, R&D funding has supported programmes including UK Shipping Office for Reducing Emissions, Freight Innovation Fund and the great self driving exploration.

Net Zero Transport for a Resilient Future Research Hub

The Research Hub for Decarbonised Adaptable and Resilient Transport Infrastructure (DARe) was launched in September 2023 and is providing at least £10 million of funding until 2027 and aims to leverage a further £10 million of industry funding, to deliver co-created research that plots viable pathways and solutions for delivering a resilient, net-zero transport system that works for people and communities.

Clean Maritime Research Hub

The Clean Maritime Research Hub forms part of the UK SHORE programme, providing £206 million R&D funding to accelerate technology and seize innovation opportunities in the UK. The hub focuses on the low technology readiness level end of the R&D pipeline, supporting scientific research in clean maritime and building a community of innovators. The hub received £7.4 million in funding and has leveraged a further £13.7 million from industry.

Transport Research and Innovation Grants

The Transport Research and Innovation Grant (TRIG) programme is a rolling programme now in its tenth year. During 2023 to 2024, 67 projects were funded with over £1.9 million in grants. At the same time, TRIG 2023 was launched and over £1.8 million in grant funding was awarded at the end of 2023 to 2024 for an additional 41 projects. TRIG 2024 has been launched and will deliver £1.3 million in grant funding during 2024 to 2025.

Projects in TRIG 2023 include:

• liquid hydrogen refuelling technology for aircraft
• an AI tool to optimise passenger flow when stations experience disruption
• zero emission parcel and crate logistics on waterways

Sustainability report

UN sustainability development goals

The 2030 Agenda for Sustainable Development is a historic global agreement to eradicate extreme poverty, fight inequality and injustice and leave no one behind. Agreed at United Nations in 2015, the 17 sustainable development (SDG) goals succeed the millennium development goals (MDGs). The SDGs are universal with all signatories expected to contribute to them internationally and deliver them domestically.

The UK was at the forefront of negotiating the SDGs and will be at the forefront of delivering them. The UK lobbied hard to make sure the SDGs support the continuation of work undertaken through the MDGs. DfT is directly working towards contributing to the achievement of the following 6 goals:

• SDG 3 – good health and well-being
• SDG 4 – quality education
• SDG 8 – decent work and economic growth
• SDG 9 – industry, innovation and infrastructure
• SDG 11 – sustainable cities and communities
• SDG 13 – climate action

SDG 3 – good health and well-being

Ensure healthy lives and promote wellbeing for all ages

Air

In 2021, DfT published the Transport decarbonisation plan (TDP), world leading in terms of its scope and ambition. The UK is ahead of most other countries in setting out such a detailed plan for decarbonising transport by 2050. The commitments made will also help to reduce emissions that impact air quality, leading to cleaner air and making lives healthier.

Since publishing the TDP, DfT has and will continue to regulate the tailpipe CO2 emissions of new non-zero emission cars and vans to limit their emissions, until 100% of new sales are zero emission in 2035. DfT also introduced the Zero Emission vehicle mandate that sets targets for 80% of new cars and 70% of new vans to be zero emission in 2030.

Outside of cars and vans, DfT is continuing work to phase out other non-zero emission road vehicles, including buses, coaches and HGVs, to help improve air quality in towns and cities.

In March 2022, DfT ran a consultation to help determine the exact date for ending the sale of new non-zero emission buses and calls for evidence on coaches and minibuses consultation. Since the initial consultation and announcement of an end of sale dates for new non-zero emission heavy goods vehicles, DfT has published a further call for evidence on exemptions to the 2035 phase-out date for the sale of new non-zero emission HGVs 26 tonnes and under. In July 2022, DfT published the second statutory cycling and walking investment strategy (CWIS2) covering 2021 to 2025, to help enable people to use public transport, or to walk and cycle, which is one of TDP’s 6 strategic priorities. The strategy includes new and updated objectives including:

• increasing levels of walking and walking to school
• doubling cycling
• increasing the proportion of short journeys in towns and cities that are walked or cycled. Over £3 billion is projected to be invested in active travel up to 2025, including around £1 billion of dedicated capital and revenue investment by DfT and Active Travel England in the 4 years up to 2023 to 2024

In 2023, the Environmental improvement plan (EIP) was published setting out the measures that will help meet clean air goal in transport. This is part of a 25 year plan that will be refreshed every 5 years, which includes interim targets for 2028 that will support delivery against the legally binding long-term 25 year targets set through the Environment Act to cut exposure to fine particulate matter (PM2.5).

Water

DfT is committed to reducing the negative impacts of transport on water quality and since 2020, we have worked to improve water quality through the Road Investment Strategy 2 (RIS2): 2020 to 2025, with National Highways having delivered over 30 water quality initiatives, improving \~32 km of water bodies, which includes rivers, streams, lakes, transitional waters, coastal waters and groundwaters.

In 2023, National Highways published their 2030 water quality plan, alongside their environmental sustainability strategy, both of which re-iterates the commitment to improve the water environment and mitigate pollution arising from highway outfalls across the strategic road network.

National Highways’ ambition, as outlined in their environmental sustainability strategy, is to mitigate harm from new and historic pollution from the strategic road network to communities and the environment.

Halve the number of deaths and injuries from road traffic accidents

Further details on road traffic accident can be found in the safety and security strategic enabler.

SDG 4 – quality education

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Transport Employment and Skills Taskforce (TEST)

In February 2022, DfT set up the industry-led skills and employment taskforce (TEST). TEST seeks to address the skills and workforce challenges facing the sector and develop interventions to ensure transport has a highly skilled, diverse workforce that is fit for the future.

Infrastructure carbon eLearning training

DfT has developed and implemented a specific infrastructure carbon eLearning training package as part of the shared digital carbon architecture programme. This training is available to all staff via the DfTc learning management system.

National Skills Academy for Rail (NSAR)

DfT works with NSAR to identify skills shortages in the rail sector and provide apprenticeship support. In November 2023, NSAR published their annual rail workforce survey for 2023. It highlighted the increasing demand for roles and skills that are ‘greener’ in nature, and which promote a more efficient railway. Specifically, a shortage in rail electrical engineers, high-voltage engineers, and systems engineers. To manage these shortages:

• NSAR manages the routes into rail initiative, which includes a dedicated website to encourage people to consider a career in rail – including in environmental protection and sustainability – and works in collaboration with the Universities and Colleges Admissions Service to promote these careers
• HS2 Ltd is committed to upskilling the UK’s future construction industry workforce to leave a positive legacy for future generations, drawing on and develop world-class skills, innovation and greener technology to deliver the railway

HS2’s ground-breaking innovation programme is delivering hundreds of projects, enabling millions of tonnes of projected carbon savings using innovative technologies and solutions. DfT expects that many of those currently working on HS2 will, in the future, go on to work on other infrastructure programmes in skilled, well-paid jobs. By the end of 2023 to 2024, there were more than 30,000 jobs supported by the programme and over 1,300 of the 2,000 expected apprentices had taken their first career steps on the project.

Future of Freight people and skills

In July 2023, the Future of Freight People and Skills Delivery Group was established to deliver on the commitments made in DfT’s Future of Freight plan. The group will consider how to make sure training is accessible and is fit-for-purpose to deliver the labour and skills pipeline required for the freight and logistics sector. The group is also tackling other barriers to recruitment and retention, such as making roles more accessible across diverse groups of people, to make sure the workforce will be resilient to any crisis or change in demand.

DfT published independent research into future aviation skills strategy in November 2023. This identified potential future skills gaps in data, engineering and cybersecurity skills to manage the development of new technology. Particularly in areas such as automation and artificial intelligence, sustainability, building, maintaining and the regulation of electric vertical take-off and landing (eVTOL) and hydrogen and other emerging propulsion technologies, which will require planning, logistics and maintenance skills. Other existing roles will also have to be adapted to deal with future trends and will require new skills in ground handling for new fuels, which will require new skills in firefighting, planning and storage.

Maritime Skills Commission (MSC)

The MSC was established in 2020 with support from DfT and received £300,000 of pump-prime funding in 2019 to 2020 to enable it to commence work. This has provided a secretariat function (based within Maritime UK) and funding for reports and research. Additionally, £75,000 was awarded in 2021 to 2022 to undertake the skills for green jobs, which resulted in the skills for green jobs report, launched in June 2024. The report recommendations include building a digital skills and careers platform, which is in development with Maritime UK.

SDG 8 – decent work and economic growth

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

DfT plays a pivotal role in promoting sustainable, inclusive economic growth and productive employment by improving connectivity and supporting the decarbonisation of the transport network.

Improving public transport connectivity can help to improve access to social and economic opportunities, boosting long-term productivity whilst supporting sustainable travel choices. For example, DfT announced a further £8.8 billion for the second round of CRSTS at the Spring Budget 2023, which will provide funding to develop and deliver sustainable public transport schemes, such as the expansion of the Merseyrail network in Liverpool City Region using new battery powered trains. This has been further bolstered by £8.55 billion of additional CRSTS funding included within the Network North announcement in October 2023.

DfT has also continued to help build the future low-carbon transport economy, which offers significant potential for economic growth and job creation, by providing a further £143 million to support the introduction of zero emission buses.

Regulations for zero emission vehicle transition by 2035 became law in January 2024. The ZEV mandate sets out the percentage of new zero emission cars and vans manufacturers will be required to produce each year up to 2030. 80% of new cars and 70% of new vans sold in Great Britain will now be zero emission by 2030, increasing to 100% by 2035. It will provide the certainty that unlocks new investments in charging infrastructure, allowing UK businesses to confidently expand and add jobs in manufacturing and infrastructure.

SDG 9 – industry, innovation and infrastructure

Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation.

It is the responsibility of DfT to set the regulations, to support the early R&D, work with the private sector to ensure that infrastructure is rolled out fairly and no region gets left behind, and make sure that this transition is delivering jobs in the UK.

The LEVI funding aims to deliver a step-change in the deployment of local, primarily low power on-street charging infrastructure across England. This will particularly support residents without access to off-street parking to have better access to EV chargers, as well as growing the charging network across the country.

Following the success of the LEVI pilot, DfT launched the full LEVI Fund in March 2023, with a further £381 million (£343 million capital and £37.8 million resource) available over the next 2 financial years. The existing On-Street Residential Chargepoint Scheme (ORCS) will continue in 2024 to 2025 and will be available to all local authorities in the UK. Since the scheme began in 2017, it has already provided funding which will see more than 14,000 public chargepoints installed.

Alongside setting the end of sale dates for non-complaint HGVs, which will drive innovation and create a market for zero emission vehicles, DfT announced during 2023 to 2024 that it will take forward the zero emission road freight demonstrator (ZERFD) programme. The programme will kick-start at-scale deployment of long haul zero emission HGVs (typically 40 to 44 tonne) and their supporting infrastructure across the UK. The programme will create an evidence base on which technology (or technology mix) will be best suited to decarbonise the heaviest road freight vehicles in the UK, which will provide confidence to the sector and enable longer term investment.

In maritime, UK SHORE manages the implementation of a suite of interventions such as the Clean Maritime Demonstration Competition. Further details on maritime decarbonisation can be found in the priority outcome reducing environmental impacts.

It is critical that the aviation sector plays its part in delivering the UK’s net zero commitment and DfT is already supporting a variety of technology, fuel and market-based measures to address aviation emissions.

DfT’s target is to deliver at least 10% SAF by 2030 and has made £135 million of capital grant funding available through the Advanced Fuels Fund, to support the development of commercial scale SAF plants in the UK. In 2022, DfT announced that 5 projects will receive a share of the £165 million Advanced Fuels Fund, which aims to take as many as possible through to commercial scale production.

In addition, DfT is undertaking a call for evidence on the 2040 zero emissions airport target, supporting airports to prepare for new forms of aircrafts through £4.2 million of funding towards the Zero Emission Flight Infrastructure project and in January 2023 published a refreshed airspace modernisation strategy.

The Future of Transport programme aims to keep the UK at the global forefront of transport innovation, leveraging £50 billion of investment in skilled jobs, and decarbonising transport. Through this programme, DfT is supporting real-world trials of new transport technologies and business models. DfT has invested £92 million in 4 Future Transport Zones and to support local leaders to work with industry and trial new approaches in areas such as mobility as a service (MaaS), micromobility, micro and macro logistics.

DfT is taking action to reduce the carbon impacts of infrastructure projects, ensuring alignment with Net Zero and Carbon Budgets. This includes embedding standardised carbon assessment across transport modes and methods of managing and reporting carbon across the asset lifecycle. DfT is also enabling the rapid adoption of carbon reduction mechanisms that are emerging from industry, such as the electrification of plant and less carbon intensive materials, including steel and concrete / cement.

The Transport Research Innovation Grant (TRIG) is a programme of competitive grants funding research and innovation to enhance the UK’s transport system across all modes. It funds early-stage innovation and prototyping and is designed to maximise SME involvement through grants of £30,000 as part of an open competition where all ideas are welcomed, and targeted competitions on DfT’s priority outcomes. The most recent TRIG competition funded 41 projects included liquid hydrogen refuelling technology for aircraft, an artificial intelligence tool to optimize passenger flow when stations experience disruption, and zero emission parcel and crate logistics on waterways.

SDG 11 – sustainable cities and communities

Make cities and human settlements inclusive, safe, resilient and sustainable

DfT is committed to provide sustainable transport for all that is resilient when facing uncertain requirements and is safe for all users.

Inclusive

Further details can be found on in the priority outcome ‘Improving transport for the user’ workstream accessibility, equality and inclusion.

Safe

Safety is considered in all aspect of DfT’s delivery and is explained in detail throughout this report and can also be found in the safety and security section.

Resilient

DfT has an established crisis management and resilience function which enables horizon scanning, risk assessment, mitigation of, planning for and response to major incidents and risks affecting the transport network.

Over the last year DfT has worked to strengthen the systems and functions that provide resilience to a range of threats and hazards, including how we use data and technology to better understand the current and future risks the transport system may face.

Enabling transport resilience not only protects essential transport services for people and freight; it underpins resilience across society, including the resilience of other essential sectors. Further information on our resilience work can be found under the strategic enabler safety and security section.

SDG 13 – climate action

Take urgent action to combat climate change and its impact

2023 was the hottest year on record globally. Decarbonising the economy will not be enough to prevent extreme weather events caused by climate change from having an impact on all forms of transport and the infrastructure that it relies upon. In response, DfT is strengthening transport adaptation policy across the transport sector. Further details can be found in the priority outcome ‘reducing environmental impacts’ under the workstream ‘delivering for a changing environment’.

Climate change adaptation

2023 to 2024 has been a milestone year on climate change adaptation as DfT published its first transport adaptation strategy for consultation: Fit for a changing climate? Adapting the UK’s transport system. The draft strategy sets a vision for a well-adapted transport network that is flexible, reliable, operates safely and is responsive to a changing climate. The adaptation strategy builds on the commitments in the third national adaptation programme (NAP3).

Actions in response to climate change risks are primarily taken by transport infrastructure operators. For example, in November 2023 the Rail Safety and Standards Board (RSSB) published a sustainable rail blueprint which provides an industry-wide framework for realising sustainable rail and includes a ‘Preparing for a changing climate’ chapter. DfT is supporting RSSB’s work to convene adaptation action across the sector and has extended its industry engagement to train operating companies (TOCs) and rolling stock companies (ROSCOs) this year, hosting a workshop for TOCs and ROSCOs to raise awareness of climate risks to their business.

Rural proofing

DfT understands that the transport needs of communities in rural areas differ from those in urban environments for a variety of reasons, which include demographics, lower population density and travel distances. DfT’s appraisal system is consistent with Defra’s national rural proofing guidelines, ensuring that policy makers address the needs of rural areas throughout the policy cycle.

Zero emission buses (ZEBs)

The second round of the zero-emission bus scheme (ZEBRA 2) will fund 9 projects that predominantly serve rural areas, investing £40 million and delivering up to 318 ZEBs for rural areas.

Tacking Loneliness Fund

The Tackling Loneliness with Transport Fund pilot concluded in July 2023. Around a third of the pilots funded were in rural areas of England. Findings from the pilot schemes are being fully evaluated and will inform how future transport schemes may contribute to reducing loneliness in communities.

Rural Mobility Fund (RMF) and demand responsive transport (DRT)

DRT trials supported by DfTc’s £20 million RMF continued, with schemes launching in Cheshire West and Chester, and Wiltshire. A rural mobility fund evaluation: interim report was published in September 2023. DRT schemes supported by bus service improvement plan funding were launched in the West of England, East Sussex and West Sussex. These schemes are run by local transport authorities with further details found on each of their websites.

Rural roads

DfTc’s highways maintenance funding methodology for allocating funding to highway authorities reflects the overall size of the local highway network, which is generally greatest in rural areas. However, decisions on where maintenance funding is spent is a decision for the relevant local authority which is outlined in the highways maintenance funding allocations.

Sustainable procurement

DfT recognises the significant impact procurement decisions can have on sustainability outcomes, therefore we are committed to ensuring the supply chain supports sustainable development goals.

DfT has a corporate environment policy, which is included in tenders setting out the minimum environmental and sustainability standards that potential suppliers to DfT must meet to win contracts, in line with the Government Buying Standards.

DfT has the CIPS kite mark, a statement of our commitment to ethical sourcing and supplier management, and as part of our CIPS accreditation, commercial staff must complete an ethical sourcing assessment which includes a module on environmentally sustainable procurement.

The commercial lifecycle assurance function provide a risk based, line of defence assurance processes against commercial activity on DfT’s portfolio, to provide confidence to the investment boards that they are being managed effectively, efficiently, and compliantly. This includes consideration of the inclusion of relevant sustainability targets, by ensuring consultation with appropriate sustainability experts at appropriate points in the procurement phase. Through this assurance, value for money is considered from an environmental perspective, as well as financial value.

DfT has a range of contractual clauses which can be used to drive sustainability and decarbonisation outcomes such as:

• the carbon reduction contract schedule, a schedule of optional carbon clauses which include topics such as holding suppliers to net zero commitments, gainshare and incentivisation
• requiring all suppliers bidding for contracts with a value of £5 million per annum to submit carbon reduction plans, or face being excluded from the procurement
• requiring DfT’s major procurements (above public procurement thresholds) to attribute a minimum 10% weighting to social value outcomes as part of the tender evaluation criteria

DfT has fully implemented the construction playbook, a best-practice principles framework published in 2020, which is aimed at getting construction projects right from the start and as green as possible, through requirements for Net Zero 2050 strategies, whole life carbon cost assessments such as PAS 2080, and an emphasis on modern methods of construction (MMC) and off-site construction where possible, which is much less carbon intensive than traditional construction.

Infrastructure projects delivered by DfT and its ALBs are required to assess all carbon impacts in line with recognised industry standards (such as PAS 2080). For these infrastructure projects, DfT has introduced standardised carbon management plans to make sure carbon is considered throughout the project’s lifecycle, containing a section on procurement. The contents of these carbon management plans are translated into tender or contract documentation to contractualise them and make sure delivery partners enact them.

DfT has both category management and supply chain management functions which are concerned with identifying supply chain risks that include the environmental impact of DfT’s supply chain.

Sustainable development

DfT has been working to deliver major projects and programmes to support the UK’s transition to a sustainable transport system. DfT’s estate and operations are closely managed, and we strive to continually improve environmental performance and reduce operational impact.

DfTc is part of the government greening commitments (GGCs), under which Defra provides the structure and standard of sustainability performance for all government departments to achieve. In 2021 Defra published a new phase of GGC targets covering 2021 to 2025. DfTc reports its performance against GGC targets quarterly to Defra, who produce a cross-government annual report. The data provided to Defra and outlined below covers the operations of DfTc and the public bodies. More detail on the activities of individual organisations to improve their own sustainable performance can be found in their individual annual report and accounts.

DfT continues to work towards delivering the actions in our operational sustainability strategy 2021 to 2025, published in 2021, to meet the GGCs by 2025 and further refining our pathway to Net Zero by 2050.

DfT has made modest progress towards the government fleet commitment with 2.38% of DfT vehicles being electric. DfT will focus on this commitment in the coming year and will work with the office of zero emission vehicle to increase procurement towards this commitment and provides good value for the taxpayer.

Summary of performance

2023 to 2024 performance shows DfT is on track to meet 7 of our 9 quantitative GGC targets (table 2).

Table 2: quantitative GGC targets

Theme	Measure	2017-18 baseline	2024-25 target	2022-23 target trajectory	2023-24 actual performance
Mitigating climate change	Total emissions (tCO2e)	412,459	156,734 (-62%)	47% reduction	216,731.28
	Direct emissions (tCO2e)	37,948	30,738 (-19%)	49.678% increase	56,799.81
	EV cars (% car fleet)	Not available	100% (Dec 2027)	2.38%	2.38%
	Domestic flights (tCO2e)	867	607 (-30%)	47% reduction	456.75
Minimising waste	Total waste (tonnes)	33,438	Under revision	4.9% reduction	31812
	Waste to landfill (%)	7%	<5%	1%	1%
	Waste recycled (%)	91%	>70%	no data	69%
	Paper use (reams)	255,431	127,716 (-50%)	89% reduction	27,962
Reducing water use	Water use (m3)	2,219,366	2,041,817 (-8%)	45% reduction	1,525,539

DfT’s 2023 to 2024 performance in comparison to 2022 to 2023 continues to be impacted by the increasing, post-pandemic, office attendance, particularly in terms of business travel. Although, DfT business travel has not returned to pre-pandemic levels. The increased use of digital solutions for meetings is a significant contributing factor to business travel level being below 2019 to 2020 figures. We continue to see significant reductions in paper use and water use, seeing us exceed our target trajectory in these areas. We anticipate maintaining these lower levels to 2024 to 2025 through sustained behaviour changes and staff awareness campaigns.

DfT’s overall and direct emissions have seen smaller reductions as sites / buildings have a baseline emissions level to operate in a safe and usable way, regardless of the number of staff attending. Whilst DfT met the interim target of 25% of the fleet being ULEV, we are not on trajectory to meet the government fleet commitment of a 100% electric vehicle fleet by 2027. DfTc and and our public bodies are developing fleet transition plans and spending projections to better enable the transition to electric vehicles.

Network Rail continues to produce large volumes of industrial waste from maintenance of the railway. These volumes fluctuate depending on the scale of works required each year so is not within DfT’s direct control. DfT has agreed with Defra that, going forward, we will not report this waste. This is to bring DfT reporting scope in line with other government departments. DfT is currently meeting its target for landfill (5%) with only 1% of waste being disposed of in this way. The vast majority of this, being waste which cannot be disposed of, safely, in another way.

A full breakdown of DfT’s sustainability metrics is provided in tables 2 and 3.

The organisations in scope of sustainability reporting are in line with the latest phase of GGCs (those included are DfTc, DVSA, DVLA, British Transport Police, Vehicle Certification Agency, High Speed 2 Ltd, Maritime and Coastguard Agency, National Highways, Network Rail, East West Rail, Northern Lighthouse Board, Trinity House and Office of Rail and Road), therefore figures provided in the tables below will differ to those included in annual reports and accounts, before 2021 to 2022. Further information can be found in the public bodies own annual reports and accounts.

Table 3: greenhouse gas emissions

Greenhouse gas emissions	2020-21	2021-22	2022-23	2023-24
Gross emissions (tonnes CO2e) – scope 1: direct emissions	103,720	110,046	98,791	18,668
Gross emissions (tonnes CO2e) – scope 2: energy indirect emissions	183,186	168,476	146,225	133,152
Gross emissions (tonnes CO2e) – scope 3: business travel emissions	29,994	18,256	20,116*	15,842
Gross emissions (tonnes CO2e) – total emissions	316,900	296,778	265,132	177,035
Related energy consumption (kWh) – office grid electricity	69,970,643	65,570,660	69,984,658	591,818,962
Related energy consumption (kWh) – non-office grid electricity	646,721,001	657,066,891	651,079,042	Cannot be separated
Related energy consumption (kWh) – renewable electricity	30,867	28,226	30,103	3,507,762
Related energy consumption (kWh) – gas	109,880,602	94,342,680	133,619,370*	69,818,726
Related energy consumption (kWh) – other heating	36,260,045	36,984,860	27,157,129	23,141,404
Related business travel – fleet road travel (litres of fuel)	6,049,015	6,193,811	20,711,353\^	Not available
Related business travel – fleet road travel (km)	247,770,528	297,826,976	39,709,470\^	45,555,026
Related business travel – non-fleet road travel (km)	47,090,685	19,303,054	35,016,912	18,290,851
Related business travel – public transport (km)	117,161,164	884,943	13,384,912*	44,440,730
Related business travel – domestic flights (km)	6,101,606	252,321	1,867,071*	2,837,110
Financial indicators – energy expenditure	£543,237,838	£494,666,555	£558,404,402	1,449,429
Financial indicators – business travel expenditure	£44,777,322	£7,090,490	£19,278,238	£12,747,522

* increases were due to more staff returning to offices and more face-to-face activities being undertaken.

\^ fluctuations as Network Rail moved to reporting fuel use rather than kilometres travelled.

Dame Bernadette Kelly DCB, 25 July 2024
Permanent Secretary and Principal Accounting Officer
Department for Transport
Great Minister House
33 Horseferry Road
London SW1P 4DH

Accountability report

Lead Non-Executive Board Member foreword

NEBMs are tasked with providing challenge, scrutiny, and support. This was a challenging year for DfT with its scale of capital spend and complex broad portfolio, and its pleasing to see the NEBMs actively engaged both with respect to the governance and support of the portfolio. Our role provides us with the opportunity to offer an independent voice across several areas including policy, business improvement, project delivery, risk management and governance. This involves engaging with policy and project teams across DfT, as well as the executives, to share the benefit of our expertise and experience and to provide challenge where needed.

We have an active role in DfT’s key governance structure, both chairing and sitting as members on committees such as the:

• Group Audit, Risk and Assurance Committee (GARAC) and Nominations Committee; which are both NEBM chaired committees. GARAC drives the delivery of the annual reports and accounts, oversees DfT’s internal audit programme, as well as conducts deep dives into areas of interest and risk management
• Nominations Committee, which I chair, has an advisory role in scrutinising and challenging DfT’s processes for developing talent and succession planning
• the DfT Board – where the NEBM team provide scrutiny and challenge on DfT’s strategy, performance and capability
• Investment, Portfolio, Delivery Committee where we use our experience of major projects and their financing to test the programmes that come through the investment approval process, as well as render advice on the management of the DfT’s portfolios
• the executive non-executive meetings – where we engage with DfT’s Executive Committee to provide advice on key strategic issues and challenges facing DfT

Our sphere of activity also goes beyond DfT’s key governance processes and extends to the support and overseeing of discrete, bespoke pieces of work on behalf of DfT and being actively involved in cross Whitehall fora. These workstreams and fora are usually aligned with the specialist skills and expertise that the NEBMs have to offer.

Some of the activity we have been involved in include:

• support and advice provided by Tracy Westall as a DVLA Challenge Panel member for DVLA review conducted by DfT. Tracy is also DfT’s lead representative at the Cabinet Office Digital and Data Steering Group, which brings together NEBMs from central government departments to advance the digital agenda across government
• advice on the road safety review and the development of plans in this space, provided by Sarah Storey. Sarah has also advised on DfT’s ongoing work on the improving transport for the user personas
• undertaking deep dives on Renewable Transport Fuel Obligation and a cyber security health check conducted by GARAC with Richard Keys as chair
• in addition to Tony’s active role on Investment Portfolio and Delivery Committee, he is currently leading a review of DVSA and is a member of the Board of the Great British Railway Transition Team
• Ranjit Baxi promoted initiatives across DfT to reduce carbon emissions and encourage sustainable practices. Ranjit’s work also extended to cross-government fora where he contributed to critical discussions on climate and sustainability
• my own work on supporting the re-set of HS2, both in my capacity as Lead DfT NEBM and as Government Special Non-Executive Director on the HS2 Board

Ahead of the next independent Board Effectiveness Review that is due to take place next year we have undertaken a light touch board effectiveness evaluation for this year. The results of which were overall very positive, and I viewed the Board as performing effectively with an engaged membership. DfT will work on the recommended actions proposed to ensure that the DfT Board operates as effectively and efficiently as possible. In my capacity as Chair of DfT’s Nominations Committee, I will ensure the delivery of these recommendations.

Ranjit completed his term this year and I am grateful for the work he has delivered over the last 3 years and wish him the best in the future.

The NEBM team and I continue to stand ready to support DfT on the delivery of its objectives.

Ian King, Lead NEBM

The corporate governance report

The corporate governance report explains the composition and organisation of DfT’s governance structures and shows how they support the work to achieve the department’s objectives. The report is comprised of a:

• statement of Principal Accounting Officer responsibility
• directors’ report
• governance statement

Statement of Principal Accounting Officer’s responsibilities

Under the Government Resources and Accounts Act 2000 (the GRAA), HM Treasury has directed me, Dame Bernadette Kelly DCB, to prepare for each financial year, consolidated resource accounts detailing the resources acquired, used or disposed of, during the year by my department, including its public bodies and other public bodies designated by order made under the GRAA by Statutory Instrument 2023 no 352 (together known as the ‘departmental group’, consisting of DfT and designated bodies listed in note 25 to the accounts).

The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of DfT and the departmental group and of the net resource outturn, application of resources, statement of financial position, changes in taxpayers’ equity and cash flows for the financial year.

In preparing the accounts, I am required to comply with the requirements of the government financial reporting manual and in particular to:

• observe the accounts direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis
• ensure that DfT has in place appropriate and reliable systems and procedures to carry out the consolidation process
• make judgements and estimates on a reasonable basis, including those judgements involved in consolidating the accounting information provided by non-departmental and other delivery bodies
• state whether applicable accounting standards as set out in the government financial reporting manual have been followed, and disclose and explain any material departures in the accounts
• prepare the accounts on a going concern basis
• confirm that the annual report and accounts as a whole is fair, balanced and understandable and take personal responsibility for the annual report and accounts and the judgements for determining that it is fair, balanced and understandable

HM Treasury has appointed me as the Permanent Secretary and Principal Accounting Officer for DfT.

I have appointed the chief executive of each sponsored delivery body as the accounting officer for their delivery body.

As the department’s Principal Accounting Officer, I am responsible for ensuring that appropriate systems and controls are in place to ensure that any grants that DfT makes to its sponsored bodies are applied for the purposes intended and that such expenditure and the other income and expenditure of the sponsored bodies are properly accounted for, for the purposes of consolidation within the resource accounts. Under their terms of appointment, the accounting officers of the sponsored bodies are accountable for the use, including the regularity and propriety of the grants received and the other income and expenditure of the sponsored bodies.

The general responsibilities of an accounting officer, which includes responsibility for the propriety and regularity of the public finances for which the accounting officer is answerable; for keeping proper records; and for safeguarding the assets of the DfTc or non-departmental and other delivery bodies for which the principal accounting officer is responsible, are set out in full in section 3.3.3 of ‘Managing public money’ published by HM Treasury.

As the Principal Accounting Officer, I have taken all necessary steps to make myself aware of any relevant audit information, and to establish that the National Audit Office has been made aware of all relevant information connected with its audit. Insofar as I know, there is no audit information of which the National Audit Office is not aware.

I confirm that the annual report and accounts as a whole are fair, balanced and understandable. I take personal responsibility for the annual report and account and the judgements required for determining that they are fair, balanced and understandable.

Directors’ report

The Secretary of State for Transport, appointed by the Prime Minister, has overall responsibility for DfT and our public bodies. DfT has one Permanent Secretary and one Second Permanent Secretary who are responsible for the effectiveness and efficiency of our work to support ministerial policies and objectives. The permanent secretaries are also responsible for DfT’s leadership, management, and staffing. The first Permanent Secretary Dame Bernadette Kelly DCB is the Principal Accounting Officer, responsible for the propriety and regularity of the DfT group expenditure.

Further information about the Principal Accounting Officer’s responsibilities is set out in this report. DfT’s funding sits in several categories, and HM Treasury holds DfT accountable to agreed funding limits for each category. Detail of outturn against these funding limits is shown in the statement of outturn against parliamentary supply. prin

Governance statement

The governance statement describes how the DfT Board and its supporting governance structures work. It provides an assessment of how DfT is managed, including the effectiveness of the systems of internal control, risk management and accountability. The Secretary of State for Transport is supported by ministers, the Permanent Secretary and the Second Permanent Secretary, non-executive board members (NEBM), and directors general. The structure of these fora is set out in the our governance chart and the DfT governance structure chart. The composition of the Board is set out in the next section.

Departmental Board members as at 31 March 2024

• Rt Hon Mark Harper MP, Secretary of State for Transport
• Huw Merriman MP, Minister of State (Rail and HS2)
• Guy Opperman MP, Minister of State (Road and Local Transport)
• Anthony Browne, Parliamentary Under Secretary of State at DfT
• Lord Davies of Gower, Parliamentary Under Secretary of State at DfT
• Dame Bernadette Kelly DCB, Permanent Secretary
• Jo Shanmugalingam, Second Permanent Secretary
• Nick Joyce, Director General Corporate Delivery Group
• Emma Ward, CBE Director General Roads, Places and Environment Group
• Dr Rannia Leontaridi OBE FRSA, Director General Aviation, Maritime and Security
• Conrad Bailey CBE, Director General, Rail Strategy and Services Group
• Alan Over, Director General, High Speed Rail Group
• Anit Chandarana, interim Director General, Rail Infrastructure Group
• Ian King, Lead Non-Executive Board Member
• Richard Keys, Non-Executive Board Member
• Dame Sarah Storey, Non-Executive Board Member
• Tony Poulter, Non-Executive Board Member
• Tracy Westall, Non-Executive Board Member
• Ranjit Baxi, Non-Executive Board Member

DfT Board members who joined after 1 April 2024

Alex Haynes, Director General Rail Services from 15 April 2024

Minister	Title	Date joined
Louise Haigh MP	Secretary of State	5 July 2024
Lord Hendy of Richmond Hill CBE	Rail Minister	8 July 2024
Lillian Greenwood MP	Future of Roads Minister	9 July 2024
Simon Lightwood MP	Local Transport Minister	9 July 2024
Mike Kane MP	Aviation, Maritime and Security Minister	9 July 2024

Previous DfT Board members

• Jesse Norman, Minister of State, DfT between 26 October 2022 to 13 November 2023
• Richard Holden, Parliamentary Under Secretary of State for DfT between 28 October 2022 to 13 November 2023
• Baroness Vere, Parliamentary Under Secretary of State for DfT between 23 April 2019 to 14 November 2023
• David Hughes, Director General Rail Infrastructure, between January 2021 to July 2023

Overview of DfTc groups, as of 31 March 2024

DfTc is organised into 7 groups. The Decarbonisation, Technology and Strategy Group is led by the Second Permanent Secretary and the 6 other groups are each led by a directors general.

The group structure at DfT changed on 1 April 2024, to enable DfT to rebalance its efforts across modes and further embed a culture of delivery, performance and joining up. The text below outlines the groups as they stood for the reporting year 2023 to 2024 not the new structure.

The main responsibilities for these 7 groups are set out below:

Decarbonisation, Technology and Strategy Group

Leads on:

• transport decarbonisation
• future transports systems and environment
• science, technology and innovation
• international
• analysis
• strategy: ministers and permanent secretaries’ offices, governance and retained EU law and Brexit opportunities
• economy, union and levelling up

Rail Infrastructure Group

Leads on:

• rail infrastructure Central
• rail infrastructure South
• rail infrastructure North
• rail infrastructure Midlands and integrated rail plan
• strategy and portfolio
• assurance

High Speed Rail Group

Leads on:

• Euston project
• delivery
• development
• programme integration

Rail Strategy and Services Group

Leads on:

• rail workforce transformation
• rail reform
• passenger services
  • policy, operations and change
  • markets North
  • markets South
  • strategy and planning

Corporate Delivery Group

Leads on:

• portfolio and project delivery
• shareholding and corporate sponsorship of National Highways, Network Rail, HS2 Ltd
• COVID-19 Inquiry
• public appointments
• corporate finance and property
• Group Finance
• Group Commercial
• Group Human Resources
• digital information and security
• Group Communications

Aviation, Maritime and Security Group

Leads on:

• aviation
• maritime
• transport security
• resilience, response, analysis and sanctions
• accident investigation branches
• Maritime and Coastguard Agency

Roads and Local Group

Leads on:

• road strategy
• logistic and borders
• motoring and freight
• local transport
• regions, cities and devolution
• shareholding and corporate
• sponsorship and policy on Active Travel England, Driving and Vehicle Standards Agency, Driving and Vehicle Licensing Agency, and Vehicle Certificate Agency and the Roads and Projects Infrastructure Delivery

Government Legal Department (GLD) provides legal advice to DfT and is not part of the DfT governance structure:

• Legal

References to the DfT Legal team

The system of corporate governance, management and internal control

DfT is governed by the:

• Secretary of State for Transport who has overall responsibility
• First Permanent Secretary’s responsibilities, both to the Secretary of State for Transport and directly to Parliament, as the Principal Accounting Officer for DfT expenditure and management
• DfT Board’s collective responsibility for overseeing the work

The system of control includes the DfT Board sub-committees, the Executive Committee and its sub-committees, and our public bodies. These are governed by the control framework, which is supported by internal and external assurance processes. The DfT governance structure chart provides an illustration of the Board and the sub-committee structure in DfT and the chair of each committee.

Figure 8: DfT governance structure as at 31 March 2024

DfT Board and its responsibilities

The Secretary of State for Transport chairs the DfT Board. The Board has oversight of 5 main areas, as outlined in table 4.

It advises and challenges on our strategic direction, and on the operational implications and effectiveness of our portfolio. The Board operates by delegating advisory responsibilities to several of its responsibilities to sub-committees, and retains accountability for our public bodies, from which periodic updates can be requested. The Board achieves all of the above by drawing on the commercial, operational, and political expertise of its members, which comprises of ministers, civil service leaders and NEBMs.

The corporate governance in central government departments: code of good practice requires the DfT Board to meet at least quarterly. During 2023 to 2024, the Board met 3 times, which was primarily due to the impact of political changes in year. A summary of the discussions during 2023 to 2024 is provided in table 4.

Table 4: DfT Board and its responsibilities

	Responsibilities of the Board	Topics discussed 2023-24
Strategy	Setting the priority outcomes and ensuring activities contribute towards them Advising on major policies, projects, and programmes	DfT response to winter disruption DfT’s transport AI strategy The government’s priorities for transport, opportunities and challenges Network North implementation and delivery
Resources	Ensuring sound financial management Considering the appropriate allocation of DfT resources	A management information pack is shared with the Board for each meeting. The pack provides an overview of performance, DfT’s financial position and risks, along with milestones and delivery of DfT’s portfolio, resourcing and workforce allocation and updates on secondary legislation Certain aspects of risk were delegated to ExCo (including the Executive Risk Sub-Committee) and GARAC, conducted a series of deep dives reviews of key risks
Capability	Ensuring DfT has the capability to deliver Ensuring DfT plans to meet current and future needs	The management information report provides an overview of DfT resources and capabilities Many of the strategic papers also cover relevant capacity and capability issues
Risk	Reviewing the risk appetite Reviewing key DfT risks Ensuring controls are in place to manage risk	Certain aspects of risk were delegated to ExCo (including the Executive Risk Sub-Committee) and GARAC, who considered a series of key risks delegated by the Board, and deep dive reviews A risk overview is provided to the Board via the management information report
Performance	Scrutinising the performance of DfT, setting standards and values

Compliance with HM Treasury’s corporate governance code

DfT has assessed its compliance with the Corporate governance code for central government departments and has remained compliant with the spirit and principles of the code.

Board effectiveness evaluation

DfT is required under HM Treasury’s corporate governance code to carry out a Board Effectiveness Evaluation annually, with independent input at least once every 3 years. The last independent evaluation was conducted in March 2022, with the next due to take place in March 2025.

For 2023 to 2024, DfT undertook an internal board effectiveness evaluation, the results of which will help continue the department’s commitment to continuous improvement of its corporate arrangements. The board effectiveness ehighlighted the following areas of focus:

• improving the induction process and induction information provided to Board members
• improving engagement across the Board and with DfT’s public bodies
• providing more visibility to the Board on its sub-committees

Overview of the Board’s subcommittee discussions

Executive Committee (ExCo)

The committee met 38 times during 2023 to 2024 and held regular discussions around key areas including:

Growing and level up the economy

• Network North team update and financial profiling
• rail reset
• HS2 costs lessons learnt
• HS2 Phase cancellation

Improving transport for the users

• Disabled Person’s Transport Advisory Committee – accessible
• Transport Equalities Centre of Excellence
• threats, hazards and preparedness
• DVLA public bodies review programme
• asset sales
• medium term financial challenges to passenger rail
• TransPennine route upgrade

Reducing environmental impacts

• decarbonisation regulatory measures
• environmental principles duty and transport adaption strategy
• decarbonisation regulatory measures

Being an excellent department

• management information
• capital departmental expenditure limits (DEL)
• preparedness and performance of network dashboard
• DfT modernisation programme
• culture and wellbeing action plan
• DfT’s flexible resource pool
• policy profession
• DfT’s principal risks
• DfT apprentice strategy
• analysis strategy
• data strategy
• primary legislation strategy
• data and digital strategic direction
• project delivery improvement
• workforce planning and prioritisation
• Places for Growth
• People Survey
• DfT response cohort
• pay award
• Civil Service modernisation
• benefit cost ratio update

International

• national security
• Ukraine response update
• DfT’s international strategy

Safety and security

• safety of transport
• winter resilience

Science and technology

• science and technology framework

Executive and non-executive meeting (ENEM)

The committee met twice between April 2023 and March 2024 and held discussions around key areas including:

• the future of DfT
• Places for Growth
• management information reporting

Nominations Committee

The committee met twice between April 2023 and March 2024 and discussions around key areas including:

• public appointments recruitment activity, events and risks
• transparency and diversity in NED appointments
• succession planning
• DfT board effectiveness evaluation results
• public body board effectiveness evaluations

Group Audit and Risk Assurance Committee (GARAC)

The committee met 9 times between April 2023 and March 2024 including 4 deep dives, reviews, the committee also held page turns and held regular discussions around key areas including:

• GIAA updates
• NAO Updates
• information security management
• counter fraud
• Renewable Transport Fuel Obligation
• declarations, management of outside interests and whistleblowing
• business appointment rules (BAR) updates
• rail transformation
• supply chain management
• shareholdings, appointments and enquiries
• management assurance
• artificial intelligence
• risk appetite and tolerance
• improving DfT control environment and counter fraud activity
• unity programme
• passenger rail services

Investment Portfolio and Delivery Committee (IPDC)

The committee met 27 times between April 2022 and March 2023. Meeting on a regular basis enabled the assurance and controls to be maintained on decisions for investments and other financial interventions. This also ensured that business cases were considered in a timely manner and that the review of procurement activity across several different areas was maintained regularly throughout the year. The committee oversaw DfT’s project portfolio and scrutinised projects during their business case preparation and delivery phases as well as considered lessons learnt.

IPDC also meets quarterly as part of ‘portfolio mode’, which reviews the future pipeline of investments and evaluation of implemented projects, as well as monitoring the progress and performance of the projects during implementation and ongoing evaluation of their impact.

Projects considered and programmes considered by IPDC during 2023 to 2024 included:

Rail projects including

• Coventry Very Light Rail update
• Midlands Rail Hub – decision to design
• redevelopment of Euston Conventional Station
• West Coast Project Rolling stock options
• Northern Powerhouse outline business case
• TransPennine route upgrade – contract notice for rolling stock
• TransPennine route upgrade programme business case
• Cross Country National Rail Direct Award full business case
• West Coast Partnership NRC Direct Award
• Northern Train rolling stock OBC
• rail revenue incentives
• new interim rail contracts for 2025
• Birmingham private finance initiative re-procurement full business case
• next steps for Northern Powerhouse Rail
• Project Reach – fibre and mobile connectivity upgrade, Network Rail full business case

HS2

• HS2 COVID-19 costs update
• HS2 Phase 1 Birmingham Curzon Street design and build contract – move to Phase 2
• HS2 Phase 1 COVID-19 claims
• funding negotiations strategy and update on HS2 Rail Bill
• HS2 programme progress
• HS2 Phase 1 and 2a performance update
• Euston re-set programme
• HS2 announcement

Road

• A428 Black Cat to Caston Gibbet Improvements – FBC
• A303 Amesbury to Berwick Down
• zero emissions road freight demonstrator (ZERFD) third strand of HGV programmes
• M5 Junction 9 with A46 approval of SO business case
• A358 Taunton to Southfields dualling cost
• M4 J3-J12 open for traffic update
• Lower Thames Crossing 6 monthly update
• Hammersmith Bridge outline business case
• A66 North TransPennine
• A12 Chelmsford to A120 widening approval and construction phase funding
• A46 Newark Bypass outline business case
• road infrastructure strategy portfolio
• road infrastructure strategy 3 statement of funds and sign off

Other investment decisions including:

• National Highways emergency area retrofit programme
• regulator’s investigation railways pension – scheme train operating company sections
• treatment of inflation in Integrated Rail Plan and His Majesty’s Treasury
• pathway towards green
• Evolve programme – DVLA
• Vehicle Excise Duty evasion detection and compliance business case

DfT investment approval structure

Investment approvals are required whenever there is a contract award or investment decision and approval must be gained from the appropriate investment board.

DfT operates a tiering system for projects and provides assurance through governance boards which monitor and make investment decisions at set points in a project’s lifecycle. The scale or scope, level of strategic risk, nature (whether it is novel or contentious) and expected costs determine the level of governance oversight a project receives.

DfT’s major projects portfolio (comprising 29 projects at the end of March 2024) comprises the largest, most complex / high risk, and most costly projects delivered by DfT and its public bodies. This ‘tier 1’ portfolio reports into the IPDC – DfT’s senior investment committee. A sub-set of this portfolio of projects (21 projects) forms part of the Government Major Projects Portfolio and reports quarterly to the Infrastructure and Projects Authority. Since 2022 to 2023, dedicated portfolio sessions to explore the health of the major project portfolio and gather insights have proved valuable to improve portfolio oversight, inform investment decisions and enhance portfolio planning. The committee continues to develop its portfolio management approach with increasing focus on the balance and deliverability of the portfolio.

Overview of Board and sub-committee attendance

Table 5: overview of Board and sub-committee attendance up to 31 March 2024

Board member	DfT Board	Executive and Non-Executive Meeting (ENEM)	Executive Committee (ExCo)	Group Audit and Risk Assurance Committee (GARAC)	Investment Portfolio Delivery Committee (IPDC)	Nominations and Governance Committee (NGC)
Rt Hon Mark Harper	3/3	N/A	N/A	N/A	N/A	N/A
Rt Hon Jesse Norman	2/2	N/A	N/A	N/A	N/A	N/A
Huw Merriman MP	3/3	N/A	N/A	N/A	N/A	N/A
Guy Opperman MP	2/2	N/A	N/A	N/A	N/A	N/A
Richard Holden MP	1/1	N/A	N/A	N/A	N/A	N/A
Baroness Vere of Norbiton	1/1	N/A	N/A	N/A	N/A	N/A
Ian King	3/3	1/2	N/A	N/A	20/27	2/2
Tony Poulter	3/3	2/2	N/A	N/A	23/27	N/A
Richard Keys	3/3	1/2	N/A	5/5	N/A	N/A
Tracy Westall	3/3	2/2	N/A	N/A	N/A	2/2
Ranjit Baxi	3/3	2/2	N/A	5/5	N/A	N/A
Dame Sarah Storey	3/3	2/2	N/A	N/A	N/A	N/A
Amarjit Atkar	N/A	N/A	N/A	2/5	N/A	N/A
Kathryn Cearns	N/A	N/A	N/A	5/5	N/A	N/A
Mark Bayley	N/A	N/A	N/A	5/5	N/A	N/A
Dame Bernadette Kelly DCB	2/3	1/2	31/38	3/3	14/27	2/2
Jo Shanmugalingam	3/3	2/2	26/33	N/A	18/22	1/2
Nick Joyce	3/3	2/2	37/38	5/5	23/27	2/2
Emma Ward	3/3	1/2	32/38	N/A	15/27	N/A
David Hughes	0/1	N/A	9/13	N/A	N/A	N/A
Conrad Bailey	3/3	2/2	37/38	N/A	22/27	N/A
Rannia Leontaridi	3/3	0/2	27/38	N/A	12/27	N/A
Alan Over (interim)	2/3	1/2	33/38	N/A	23/27	N/A
Anit Chandarana	2/2	2/2	20/24	N/A	11/14	N/A

* There were also deep dive sessions scheduled for select members for particular topics of interest

>Ministerial and staff moves mean that some of the individuals listed above were not in post for all meetings.

Amarjit Atkar’s term ended on 31 August 2023.

Governance of public bodies and landscape

Much of DfT’s business is conducted with and through our public bodies. Within DfT a sponsor team or separate client and shareholder teams in the case of government-owned companies – manages the relationship with public bodies at working level by following the principles set out in a framework document.

Framework documents

There is a framework document in place between DfT and each public body, in line with HM Treasury and Cabinet Office guidance. Framework documents are developed in collaboration with each public body to set out:

• respective responsibilities
• accountabilities
• governance arrangements
• financial management
• clear expectations for the relationship between each public body and DfT

Relevant controls set out by DfT, HM Treasury, and Cabinet Office that define the parameters within which the organisation must operate are also detailed, including reporting requirements.

Public body reviews

In line with the Cabinet Office’s Public Bodies Review Programme DfT is committed to regularly reviewing the governance, accountability, efficiency and effectiveness of its public bodies to drive improvements in service delivery and ensure public bodies deliver excellent customer services and value for money for the taxpayer.

The Civil Aviation Authority review was completed, and the report was published in July 2023, which confirmed that the CAA is fit for purpose and delivers high quality services to the aviation and aerospace industry and the consumer, with recommendations now being implemented.

DVLA was completed in June 2024 and the report is being prepared for publication. The Driver and Vehicle Standards Agency review is due to be completed autumn 2024.

Non-executive board appointments

Ministers appoint around 190 non-executive board members (NEBMs) or equivalent roles, including chairs to DfT’s public bodies, this equates to around 60 appointments every year. One of the functions of these roles is to provide a link between DfT and its public bodies as well as providing their boards with the required expertise and experience to enable delivery of the government’s objectives. NEBMs’ also provide constructive challenge to the public bodies’ boards, to ensure good governance.

Many of DfT’s public appointments are regulated by the Commissioner for Public Appointments, in compliance with the government’s Governance code on public appointments.

Diversity in public appointments

The DfT strategy for diversity in public appointments aimed to improve data, attract more diverse talent, develop a more inclusive application processes, and provide more ongoing candidate support. Progress has been made in all these areas and the diversity strategy has been refreshed to build on our successes and make further improvements from 2023 to 2025.

In March 2023, 32% of NEBMs in DfT’s public bodies were female and 12% were from ethnic minority backgrounds. In line with government aspirations, DfT continues working on improving diversity in public appointments and now collects more comprehensive diversity data on current appointees, including regional and socio-economic data, to build a fuller picture of the diversity of our public appointments. As of March 2024:

• 1.5% are aged 25 to 34, 5% are aged 35 to 44, 14% aged 45 to 54, 52% aged 55 to 64, and 14% aged 65 to 74 with the rest not declaring
• 11% are from an ethnic minority background (4% Indian, 3% Irish, 1% Pakistani, 1% White/Black African, 1% African and 1% Other Mixed / Multiple ethnic background)
• 14% have declared a disability
• 30% of DfT’s public appointees are female
• 43% are located outside London and the south-east

As part of the 2021 to 2022 strategy, DfT has continued to build a diverse list of independent panel members (IPMs) for public appointment panels, and a talent pool of credible and diverse candidates with a range of skills and experience. Public appointment roles have also been promoted among a wide variety of networks and individuals through targeted search efforts, we have made improvements to advertisements and candidate packs to ensure they are more inclusive and have organised regional events aimed at attracting diverse candidates and raising awareness of public appointments.

DfT has also set up a Public Appointments Diversity Engagement Group which meets regularly and is chaired by a DfT NEBM as DfT’s Public Appointment Diversity Champion. Attendees included chairs, non-executive directors, or executives’ directors from several DfT’s public bodies and each quarter the group discuss and contribute improvement suggestions to help DfT to improve diversity in public appointments.

Ministerial direction

There were no ministerial directions during 2023 to 2024.

Declaration of interest

In February 2024, DfTc launched a declaration and management of outside interests’ online intranet database for all staff. The database has enabled a better overall and streamlined user experience, improved management of the data and resourcing efficiencies.

For the 2023 to 2024 SCS annual confirmation of declaration exercise, all DfTc SCS were invited to use the database to record their return with the option to update any existing declaration or make a new declaration for review, assessment, and approval / sign-off by the appropriate senior manager. The SCS in the executive agencies continue to manage their annual confirmation of declaration exercise off-line. However, details of all the SCS with an outside employment, work, or appointment (paid or otherwise renumerated) are centrally collated, robustly scrutinised and signed-off by DfTc Permanent Secretaries and published. DfTc’s NEBMs declaration is noted below.

Declaration of interest by NEBMs

Table 6: declaration of interest by NEBMs

Name	Name of company or organisation	Position held in DfT	Type of interest (e.g pay, fees, shareholding)	Other relevant information
Richard Keys	Merrill Lynch International	DfT NEBM and GARAC Chair	NEBM
Richard Keys	AWE Plc.	DfT NEBM and GARAC Chair	NEBM
Ian King	BaE Systems	Lead NEBM, DfT	Previous CEO
Ian King	Gleacher Shacklock (who is the financial advisor to Kier a leading UK construction and infrastructure services company).	Lead NEBM, DfT	Senior Adviser to the board
Ian King	HS2 Ltd	Lead NEBM, DfT	NEBM SoS Special Director
Ian King	Schroders plc.	Lead NEBM, DfT	Senior Independent Director
Ian King	Senior plc.	Lead NEBM, DfT	Chair
Tony Poulter	Cubico Sustainable Investments Ltd	DfT NEBM	NEBM
Tony Poulter	London and Continental Railways Ltd. (LCR)	DfT NEBM	Special Director
Tony Poulter	National Portrait Gallery	DfT NEBM	Unpaid member of the finance and audit committees
Tony Poulter	Great British Railways Transition Team (GBRTT)	Unpaid member of the GBRTT Advisory Panel	DfT NEBM
Tony Poulter	Oxford University	DfT NEBM	Unpaid member of Oxford University Finance Committee
Tony Poulter	Civil Service Commission	DfT NEBM	Civil Service Commissioner
Tony Poulter	BGGI Infrastructure Investment Trust	DfT NEBM	Small Shareholder
Tracy Westall	KeTech (technology systems supplier to TOCS and ROSCOs)	DfT NEBM	Advisory Board support
Tracy Westall	WM5G Limited (West Midlands 5G), a digital connectivity and innovation company	DfT NEBM	Chair
Tracy Westall	Zaizi Limited – digital solutions technology provider	DfT NEBM	NEBM
Tracy Westall	Agena Group – parking services and systems technology provider	DfT NEBM	NEBM
Tracy Westall	DSP Explorer – Oracle Cloud Services provider	DfT NEBM	NEBM
Dame Sarah Storey	Active Travel Commission	DfT NEBM	Active Travel Commissioner for Greater Manchester
Ranjit Baxi	Global Recycling Foundation	DfT NEBM	Founder President
Mark Bayley	Great British Railways Transition Team Limited	GARAC NEBM	NEBM
Mark Bayley	Network Rail Limited	GARAC NEBM	NEBM
Mark Bayley	Network Rail Infrastructure Limited	GARAC NEBM	NEBM
Mark Bayley	Network Rail Property Limited	GARAC NEBM	Director
Mark Bayley	Shadwell Opera Limited	GARAC NEBM	Director
Mark Bayley	St Pancras Church Lands Trust	GARAC NEBM	Trustee
Mark Bayley	The Water Services Regulation Authority (OFWAT)	GARAC NEBM	NEBM
Kathryn Cearns	National Highways	GARAC NEBM	NEBM and Chair of ARC
Kathryn Cearns	DOHL DfT Operator of Last Resort Holdings Ltd.)	GARAC NEBM	NEBM and Chair of ARC
Kathryn Cearns	Nuclear Decommissioning Authority	GARAC NEBM	NEBM and Chair of ARC
Kathryn Cearns	Press Recognition Panel	GARAC NEBM	Chair
Kathryn Cearns	The Property Ombudsman	GARAC NEBM	Deputy Chair and NEBM

Special advisors

In line with the current declaration of interests policy for special advisers, all special advisers have declared any relevant interests or confirmed they do not consider they have any relevant interests. The Permanent Secretary has considered these returns and there are no relevant interests to be published.

Business appointment rules (BAR)

The business appointment rules (BAR) process is in place to uphold and protect the core values of the Civil Service Code if a former civil servant takes up an external appointment or employment (which includes civil servants at all grades and special advisers). The rules apply for up to 2 years after an employee has left our employment. The purpose of the rules is to address any reasonable concerns that a new employer might gain an improper advantage by appointing a former official, and the risk of a former official improperly exploiting privileged access to contacts in government.

During the 2023 to 2024 reporting year, DfT had 12 employees leaving the Senior Civil Service to join external organisations. There were zero applications received at SCS2, SCS1 or below SCS which were deemed unsuitable for the applicant to take up the new role with the new employer without conditions being in place.

	Number of BARs applications assessed by DfT in 2023-24
SCS2	4
SCS1	5
Special advisers	1
Below SCS	19

	Number of BARs application approved by DfT with conditions set in 2023-24
SCS2	3
SCS1	4
Special advisers	1
Below SCS	19

There have been no reported breaches of the business appointment rules during the 2023 to 2024.

In compliance with BARs, DfT is transparent in the advice given to individual applications for senior staff, including special advisers. Advice regarding specific business appointments for members of the Senior Civil Service has been published. GARAC also receive a bi-annual paper on business appointment rules, to monitor DfT’s application of the rules.

DfT’s approach to risk

DfT’s risk management policy promotes a no surprises, no blame culture, where well managed risk taking is encouraged and managers are asked to lead by example. Risk management behaviours should be embedded into all departmental activities. DfT’s leadership understands that considered and well-managed risk taking is necessary to deliver organisational objectives.

As a result, there is regular monthly reporting of the group’s top risks to ExCo, and additional reporting to ENEM and the DfT Board. The Executive Risk Committee conduct a deep dive of a specific principal risk and of a group’s risk management framework and top risks each month.

During the year, DfT reviewed and further developed the principal risks and the reporting of the same to senior management. The purpose is to update, clarify and clearly identify DfT’s top risks. These risks were managed and mitigated throughout the year and will continue to be updated.

DfT also reviewed and updated its risk policy which included much clearer guidance around the definition and use of risk appetite and tolerance. DfT now has 17 risk themes which align with the Orange Book risk categories and align with DfT’s principal risks.

There is no principal risk specifically on legal risks, however DfT is mindful that we work in an environment and deliver projects and programmes that can attract legal challenge and it is important that we operate within the law. Legal risks are assessed, monitored and mitigated project by project and programme by programme and we take appropriate measures to meet legal or regulatory requirements or to protect our assets.

DfT is fully engaged on cross government improvement work to strengthen risk management – DfT’s principal risks align closely to those managed by the Civil Service Board.

DfT recognises that many risks are carried by its public bodies and works with them to ensure that risks are widely understood, and opportunities are taken to collectively manage them. The risk escalation protocol continues to give direction to the public bodies on what they need to escalate to DfT and when DfT works with them to ensure that risks are widely understood, and opportunities are taken to collectively manage them.

The reporting year has again brought many challenges and as a result, DfT took forward a risk action plan to further address and strengthen risk management. This plan was agreed and supported by the Executive Risk Committee (incorporating departmental risk champions). Key elements of the plan included more consistency with how risks are managed by the top boards, strengthening the feedback loops across the whole department and renewing the commitment to build staff capability. Increased, dedicated, risk management training for all staff where appropriate will continue to be taken forward during the coming year.

Principal risks

DfT has managed principal risks covering the following areas: affordability, projects / programmes, environmental, people capacity, capability and wellbeing, cyber, strategy, commercial, border delays and infrastructure health. These risks and how we have managed them are summarised in the table below.

Table 7: principal risks

Risk	How DfT has managed the risk
Affordability DfT is not able to afford to deliver all of its priorities for both in-year and the medium to long-term, due to inflationary or other pressures and the constrained fiscal environment.	DfT has worked with HMT to collectively determine appropriate mitigations regarding affordability risks for both in-year and future years. This included using the ‘supplementary estimate’ to re-set budgets for the year and the ‘main estimate’ following business planning to confirm budgets for the following year. DfT has also put in place processes to address any affordability concerns, risks, and opportunities, set budget holder forecasting targets to maintain accountability and continued to flag and advise ministers and ExCo on future affordability risks. This risk increased in severity during the year.
Projects / programmes DfT is not able to deliver its major projects to time or cost or deliver the expected benefits.	All projects and programmes have their own oversight boards and will report into the relevant tier board e.g., tier 1 projects and programmes reported into IPDC. DfT has a developing way of managing its portfolio at the departmental level and with its biggest delivery partners: Network Rail, HS2 Ltd, and National Highways. This has helped to reduce cross-organisational portfolio risks and improve long-term planning for the portfolio of projects based on affordability and achievability. DfT also has a project delivery change programme, supervised by ExCo, to constantly improve project, programme and portfolio management. This is an ongoing programme of improvement actions identified and ranked by need and resources. This risk remained steady during the year.
Environmental DfT does not deliver sufficient action in the transport sector to provide carbon savings, meet air quality and biodiversity targets and mitigate against climate change, as required by law.	DfT implemented the zero emission vehicle (ZEV) mandate in January 2024 – the largest carbon-saving measure across government. The certainty provided by the ZEV mandate is facilitating private sector investment in the transition. DfT is also implementing changes across modes that will support in the reduction of pollutants. For example, in March 2024, DfT announced that a further 25 local transport authorities had successfully secured up to £142.8 million of zero emission buses regional areas 2 funding, and we have consulted on a sustainable aviation fuels (SAF) mandate which will provide a guaranteed level of demand to SAF suppliers and support the aviation sector reduce emissions. This risk remained high throughout the year.
People capability and capacity DfT does not have the capacity and/or capability to deliver its priorities and objectives, with additional effect on the wellbeing of DfT staff.	DfT’s 3 year plan aims to: improve future leadership and professional skills through yearly talent programmes, a ‘foundation line manager’ programme and a new SCS leadership training offer ‘Elevate’; develop career pathways and get a new apprenticeship provider and ‘commercial apprenticeship route’ offer and launch a new mentoring platform. DfT has also improved workforce planning practices such as regular reviews and forecasts; made a strategic workforce plan focused on recruitment and retention, skills development and an agile workforce. This risk reduced in severity during the year.
Border delays / workforce shortage Freight, passenger transport and key transport corridors disrupted due to border delays and / or workforce shortages.	DfT has ensured formal ministerial oversight of the EU Entry/Exit System (EES) with the Home Office being asked to act as the lead department. We have also worked with juxtaposed controls (Port of Dover, Eurotunnel and Eurostar) the French government and EU commission to help identify strategies for dealing with the new EES changes in autumn 2024. DfT commissioned research on impacts of the border process on transport stakeholders to better define our approach to influencing border policy. This risk increased in severity during the year.
Cyber DfT digital systems become compromised due to a hostile cyber environment and increase in cyber-attacks.	Our focus remains on continuous improvement and delivery of a new government initiative on secure development (Secure by Design), to be mandated across government from January 2025. Against a backdrop of increased cyber threats, DfT has also undertaken a comprehensive review of its cyber maturity. This risk remained steady during the year.
Commercial Transport systems are unable to function due to a critical market, supplier or supply failure in key network and delivery tools.	DfT has run a UK-wide series of SME ‘meet the buyer’ events to help SMEs connect with buyers and strategic suppliers, learn about DfT goals and see our future commercial opportunities. We have also worked with the Cabinet Office and other departments to stay aware of cross-government strategic supplier health and important markets, like construction. This risk reduced in severity during the year.
Strategy DfT does not adequately forecast/ horizon scan for future changes in the transport system, resulting in ineffective decision making (e.g. demand forecasting, scenarios, or future projects).	DfT has explored geospatial artificial intelligence ‘foundation models,’ to identify opportunities and barriers to understand how the technology could benefit transport. We have also examined how futures techniques can support preparation of possible future micromobility legislation, and published the transport adaptation strategy monitoring and action plan. This risk remained steady during the year.
Infrastructure health Failure to maintain the condition of the transport system (infrastructure) to a sufficient level, results in infrastructure degradation and the increased risk of experiencing asset failures causing casualties, negative impacts on the nation’s output and impacts upon our ability to maximise opportunities presented by technological advance	DfT gave local highway authorities long-term funding awards from the £8.3 billion extra money for local highway upkeep. The more money and long-term security will help local highway authorities plan better for local highway upkeep. National Highways uses its asset data and a smart, evidence-based way to decide and do its maintenance work on the strategic road network, which includes making the best use of its maintenance plans and doing maintenance based on data and risk. ORR is an independent economic watchdog for roads and rail and checks that it has suitable and balanced asset management plans to keep the rail network in good condition.

In addition to these principal risks noted, DfT also managed risks on ‘security and resilience’ and ‘international crises’ and their impact on the transport systems.

His Majesty’s Treasury Orange Book principles – comply or explain

In 2024 DfT updated its risk management policy and was given a ‘moderate’ rating from GIAA as part of their risk audit in 2024.

DfT’s risk management practices fully comply with 4 of the 5 requirements of the Orange Book’s principles.

Although the 4 principles A to D are fully established, we have identified actions that would ensure continuous improvement and further mature our risk management culture, processes, and effectiveness.

Principle E is partially complied with and we plan to make improvements and aim to achieve full compliance for next year’s statement. Details of how we will achieve this can be found below.

Principle A: risk management shall be an essential part of governance and leadership and fundamental to how DfT is directed, managed and controlled at all levels

DfT fully complies with ‘Principle A’.

DfT has a clear framework and good practice in place for reviewing, challenging and escalating both the principal risks and group level risks to ExCo and the DfT Board. IPDC also play an important role in supporting DfT to manage and identify key risks with the programme and projects portfolio and conduct quarterly portfolio risk reviews.

The Executive Risk Committee conduct regularly deep dives which are reviewed by GARAC, into the principal and group risks and also areas for improvement or that are contentious.

This approach promotes the department’s transparent policy of ‘no surprises, no blame’ culture where professionally managed risk taking is encouraged.

Areas identified for continuous improvement are to embed DfT’s culture at all levels within DfT and to assess the effectiveness of the risk management system on a more regularly basis. This will make sure that all staff new and experienced feel confident in raising risks and will also allow for improvements to the framework to be identified earlier.

Principle B: risk management shall be an integral part of all organisational activities to support decision making in achieving objectives

DfT fully complies with ‘Principle B’.

DfT has a fully embedded portfolio risk management approach that is being used by IPDC to oversee the delivery of the tier 1 portfolio of projects and, by association, the wider DfT portfolio. Portfolio risk management has also been used as part of managing the cross-modal Network North sub-portfolio that was announced in October 2023. This portfolio risk approach supports the following departmental principal risk: ‘DfT is not able to deliver its major projects to time or cost or deliver the expected benefits’.

Principle C: risk management shall be collaborative and informed by the best available information and expertise

DfT fully complies with ‘Principle C’.

Risk is considered regularly by the DfT Board, ExCo, IPDC, GARAC, the Executive Risk Committee, and at Group Boards. Each of these have risk experts in attendance and appropriate subject matter experts.

For example, during a principal risk deep dive, the principal risk director (or deputy director) is constructively challenged.

An opportunity for improvement is to further develop the risk reporting platform to allow easier access to good quality data and more focused challenges, especially the effectiveness of mitigating actions and understanding interdependencies between risks better.

Principle D: risk management processes shall be structured to include:

• the selection, design and implementation of risk treatment options that support achievement of intended outcomes and manage risks to an acceptable level
• risk identification and assessment to determine and prioritise how the risks should be managed
• the design and operation of integrated, insightful and informative risk monitoring
• timely, accurate and useful risk reporting to enhance the quality of decision-making and to support management and oversight bodies in meeting their responsibilities

DfT fully complies with ‘Principle D’.

ExCo conduct an annual review of the principal risks and set the appetite and tolerance levels for each. This supports the principal risk owner to be able to implement the appropriate risk mitigating actions, and decide when the risk should be escalated if these actions do not keep or bring the risk back into tolerance.

The DfT risk framework makes clear who is responsible for what level of risk across the governance structure and the frequency of risk reporting.

The frequency of risk reporting is aligned to the general level of risk. ExCo and group boards undertake monthly reviews risks, while at a portfolio level, the portfolio risk management approach used by IPDC is conducted on a quarterly basis. This ensures that the right level of risk data is reviewed at the appropriate time and supports DfT to prioritise how decisions are made across all levels.

Principle E: risk management shall be continually improved through learning and experience

DfT partially complies with ‘Principle E’.

DfT has in place a ‘risk action plan’ that enables the department to continuously improve its risk management maturity, however the level of risk management training and expertise varies across the grades and roles within DfT.

DfT undergoes lesson learnt exercises through IPDC when programmes and projects are complete, and they are also challenged at their initial stages to identify what they have learnt from previous programmes and projects.

There is a clear commitment for improving and training is available – e.g. the accredited and non-accredited risk courses available to staff through civil service learning, and internal risk workshops e.g., to improve understanding of risk appetite and tolerance and how they are used within DfT.

Task Force on Climate-related Financial Disclosure (TCFD)

The Financial Stability Board (FSB) created the Task Force on Climate-related Financial Disclosure (TCFD) to improve and increase reporting of climate-related financial information. The TCFD developed recommendations on disclosures across 4 pillars to help organisations systematically assess and disclose their handling of climate rated financial risks.

The 4 pillars are:

• governance
• strategy
• risk management
• metrics and targets

Government departments are required to disclose against these 4 pillars in 3 phases. For 2023 to 2024 reporting, phase 1 requires departments to include disclosures on ‘governance’, ‘metrics and target’s (where information is available) and compliance statement.

Governance

DfT Board’s oversight of climate-related risks and opportunities

Overview of DfT actions

Strategic, financial and other significant matters, including setting environmental direction, policy and performance standards, are reviewed and advised by the DfT Board.

The DfT Board receives regular updates on the progress made in managing DfT’s principal risks, which includes those related to climate change.

GARAC which is a sub-committee of the DfT Board, provide oversight of risk management including climate related risks providing challenges on processes assessment and governance in place.

DfT management’s role in assessing and managing climate-related risks and opportunities

ExCo is the main overseer of climate related risks, ranging from climate risk and impacts and strategies to manage these risks.

DfT’s climate related principal risk is discussed at the Executive Risk Committee chaired by the Corporate Delivery Group Director General. At these meetings the committee conducts a deep dive on at least an annual basis which involves reviewing the appetite and tolerance levels, and providing challenge on the mitigating actions and whether they are suitable to maintain or get withing tolerance.

Details of climate related discussions that have taken place at the DfT Board and ExCo can be found of in this report.

Metric and targets

Disclose scope 1, scope 2, and, if appropriate, scope 3 GHG emissions, and the related risks

Disclose of:

Scope 1

Further information can be found in the sustainability report.

Scope 2

Further information can be found in the sustainability report.

Scope 3

GHG emissions and the related risks.

Further information can be found in the sustainability report.

Compliance statement

DfT has reported on climate-related financial disclosures consistent with HM Treasury’s TCFD-aligned disclosure application guidance, which interprets and adapts the framework for the UK public sector. This statement includes the TCFD recommended disclosures for phase 1 on ‘governance’, and ‘metrics and targets disclosures (b)’. This is in line with the central government’s TCFD-aligned disclosure implementation timetable. DfT plans to make disclosures for ‘strategy’, ‘risk management’ and ‘metrics and targets disclosures (a) and (c)’ in future reporting periods in line with the central government implementation timetable.

Functional standards

Where relevant, DfT staff seek to work to the mandated government functional standards in a way that meets its business needs and priorities. GovS 001, government functions sets expectations for the consistent management of all functions and functional standards across government. The remaining standards, GovS 002 onward, set expectations about specific types of functional work, such as project delivery or commercial. They provide a stable basis for assurance, risk management, capability improvement and support value for money for the taxpayer. This activity is in addition to DfT’s management assurance process which ExCo and GARAC assurance on compliance with process and controls. This activity is in addition to DfT’s management assurance process which provides the Executive Committee ExCo and GARAC assurance on compliance with process and controls.

Financial governance and management control

DfT’s business planning process allocates the budget voted by Parliament to all parts of the department. Financial plans are agreed between DfT and HM Treasury through the Spending Review process.

At the commencement of each financial year, Parliament provides statutory authority for DfT’s budget through the main estimate. In parallel, the Principal Accounting Officer formally delegates budgets to directors general and our public bodies. DfT, through ExCo, reviews actual and forecast outturn each month to ensure that spending is managed in-line with approved budgets and takes any required action to enable and control this. This monitoring is designed to ensure that DfT does not breach any of the spending control limits approved by Parliament, while also providing advice on options to ensure the best use of available resources to ministers and the Board to deliver DfT’s priority outcomes.

Requests for budget changes are agreed with HM Treasury during the year alongside strategic decisions made by ministers and the DfT Board. DfT seeks statutory authority from Parliament for changes to budgets in year through the supplementary estimate. In parallel, final budget delegations for the year are issued to directors general and public bodies. Actual spending for the year is compared with the final budgets approved by Parliament in the statement of outturn against Parliamentary supply.

Financial control and counter fraud

DfT continued to deploy the Control Network Group (CNG), comprising senior subject matter experts from key functional areas to ensure oversight and delivery of robust controls, counter fraud activity and driving compliance with HM Treasury, Cabinet Office and internal controls. Assurance is provided through the management assurance activity on the control’s framework and CNG provide strategic oversight on key risks and any retrospective approvals.

DfT has a ‘zero-tolerance’ attitude towards fraud, bribery, and corruption and any reported instances are investigated and, where appropriate, disciplinary and/ or legal actions are taken, in line with DfT and Public Sector Fraud Authority (PSFA) guidelines. DfT continued to deliver against the 2023 to 2025 counter fraud, bribery and corruption strategy (launched in 2023) in countering fraud, reducing risk, and raising awareness across DfT. DfT participated in the International Fraud Awareness Week to raise awareness of fraud and working towards reducing its impacts.

DfT also undertook detection activity and used Spotlight, a due diligence tool to support identification of risk areas that may require further investigation and detection of fraud and error.

Quarterly meetings were held with senior counter fraud managers in the public bodies, other representatives from DfT and Government Internal Audit Agency (GIAA). This engagement allowed DfT to consider updates from group members on counter-fraud activity, advice and initiatives from the Public Sector Fraud Authority (PSFA), and sharing of best practice.

This collaborative approach allowed DfT to raise awareness of counter fraud activity and better understand the risk landscape across DfT. It also allowed considerable progress to be made in meeting the requirements of the government’s counter fraud functional standards.

All staff in DfT are required to undertake annual online fraud awareness training.

DfT continues to implement PSFA’s across-government internal fraud policy where employees dismissed for fraud, bribery or corruption are placed on to the Cabinet Office internal fraud database and are not able to gain re-employment across the civil service for a period of 5 years. During 2023 to 2024, 3 cases fell within scope.

Where appropriate, any cases of reported fraud during the same period within DfT’s public bodies are noted in their own governance statements.

Raising a concern and whistleblowing

DfT remains committed to building a culture where people feel safe to speak up about perceived wrongdoing and inappropriate behaviour and to report any concern in the knowledge that these will be heard, and concerns taken seriously.

To continue to improve awareness of reporting routes DfT participated in ‘Speak Up’ week in November 2023. This is a civil service-wide campaign. Its key aims are to improve understanding of how to raise concerns and to help people to feel comfortable doing so. Action was taken across DfTc and our executive agencies to actively promote the importance of raising concerns and the routes available to staff to do so. A series of events were delivered in DfTc with a particular focus on respect and fair treatment, the role of nominated officers and the support they can provide for staff propriety and ethics. The week was championed by a NEBM and also supported by the Secretary of State for Transport.

The People Survey also provides DfT with useful information and insight on how employees feel about the department at a point in time. This data provides an opportunity to improve, develop and strengthen existing processes and practice going forward. Improvements have been seen in People Survey 2023 scores across DfT on both awareness of how to raise concerns and confidence that if a concern it raised it will be investigated properly. of DfTc staff were aware of how to raise a concern under the Civil Service Code this was 12% higher than the Civil Service benchmark. This was also a 3 percentage point improvement on the People Survey 2022 score. 87% of DfTc staff were also confident that if concerns were raised, they would be investigated properly. This is eleven percentage points higher than the Civil Service benchmark and an increase of the same (11%) on the 2022 People Survey results.

There have also been improvements in the positive responses to the ‘safe to challenge’ question. In DfTc there was a 66% positive response (14 percentage points higher than the CS benchmark of 51% and a ten-percentage point improvement on 2022).

Our processes for raising concerns about wrongdoing are of a satisfactory standard and the work that we have done to improve them has been recognised and accepted by others, e.g. the Cabinet Office and via the National Audit Office (NAO) who selected both DfTc and the Maritime and Coastguard Agency as good practice case studies as part of their 2023 review of whistleblowing in the Civil Service. Over the next 12 months DfT will work with the Cabinet Office to assess ourselves against the review report recommendations and take further improvement action where needed.

Management assurance

DfT conducted management assurance activities to gather evidence on the implementation and operation of processes, procedures and controls across DfTc and our public bodies within the accounting boundary.

DfT approach to assurance involved a 3 stage review process:

1. First line of defence: Directors and CEOs from public bodies provided assurance over key control areas within their responsibility.
2. Second line of defence: Independent assessments of these areas were conducted by policy leads or subject matter experts.
3. Third line of defence: Additionally, GIAA provided audit opinions for relevant audits, and by offering an independent overall audit opinion.

Directors and CEOs from public bodies were required to create action plans for areas with less than ‘substantial’ ratings. The results from these assurance activities were discussed at the CNG and presented to ExCo and GARAC.

1. The first line of defence review for 2023 to 2024 has been completed and based upon initial second line of defence assessment, the overall result is in the moderate range.
2. The second line of defence opinion will be completed in full in late summer 2024. During the year, DfT also completed the second line of defence activity relating to 2022 to 2023, confirming the overall moderate rating for that year.
3. The overall third line of defence opinion, GIAA audit opinion for DfTc based upon the 2023 to 2024 GIAA audit plan, is also ‘moderate’.

Analytical assurance

Analytical quality assurance (AQA) involves the consideration and communication of the strengths, weaknesses and limitations of analysis. This allows decision makers to better understand the quality of the evidence base they use. DfT’s analytical assurance framework, Strength in Numbers, aims to strengthen the standard of analytical quality assurance. It is now well embedded within DfT and the executive agencies.

As part of the framework, DfT maintains and publishes a DfT analytical assurance framework, which has an appointed senior model owner responsible for ensuring appropriate governance and quality assurance of the model and its outputs throughout its lifecycle. Business critical models are used to drive essential decisions and have robust governance regimes in place to assure against errors which could cause serious financial, legal and / or reputational damage to DfT.

There are currently 93 business critical models used across DfT and the executive agencies, 41 of which are based in DfT.

Where analysis is used to inform or underpin decision-making, papers must include an analytical assurance statement. These statements highlight the strengths, limitations, and uncertainties in the analysis, ensuring decision-makers are fully informed. When included in submissions to ministers and tier 1 and tier 2 investment boards, they must be reviewed by an independent assurer to make sure all relevant information has been communicated, and the extent to which the analysis is considered reasonable and robust is clear.

There is good governance and assurance of analysis produced by public bodies to inform decisions taken by DfT, facilitated by strong working relationships between analysts across the organisations. Where responsibility for decision-making is delegated to public bodies, responsibility for AQA is also delegated. DfT’s community of practice brings together colleagues responsible for AQA from DfT and the executive agencies to share good practice and ensure continuous improvement.

This is a mixture of a qualitative assessment (based on experience via the DfT model board and challenge on QA practices of business critical models) and assessments from the management assurance exercise on analytical assurance. Where explored further, feedback from investment boards were positive, noting few if any instances of analytical assurance not having an independent review (i.e. via review of an analytical assurance statement from the Economic Centre of Excellence for any tier 1 or tier 2 investments based on analysis). This was also explored with ministers and permanent secretaries offices, where no instances of non-approved analysis were noted, however there is a need to explore this further to increase confidence over the coming year.

Independent assurance

DfT’s internal audit service is provided by GIAA, an executive agency of HM Treasury. GIAA operates to the public sector internal audit standards, confirmed through its last external quality assessment undertaken by the Institute of Internal Auditors between July and October 2020. The Group Head of Internal Audit (Group HIA) provides the DfT’s Accounting Officer with an independent opinion on the adequacy and effectiveness of DfT’s systems of internal control and makes recommendations for improvement. The work of GIAA is based on its analysis of DfT’s risks and its audit programme, which is approved by GARAC. Regular reports are provided by GIAA to DfT’s management, GARAC and to the Executive Committee.

The Group HIA has provided the first Permanent Secretary with an annual report on internal audit activity in DfT and its public bodies over the course of 2023 to 2024. This report summarises each of the individual Head of Internal Audit annual opinions for DfT and its public bodies; movement from 2022 to 2023 and provides the group HIA’s independent opinion for 2023 to 2024 on the level (i.e. substantial, moderate, limited, unsatisfactory) of assurance that can be placed on the adequacy and effectiveness of DfT and public bodies governance, risk management and internal control arrangements.

The report showed that across DfT and its public bodies, internal audit found evidence that the control environment established over recent years has broadly been sustained. All the HIAs of DfT bodies reported a moderate opinion. As a result, the group internal audit opinion for 2023 to 2024 is ‘moderate’.

Looking ahead, DfT and its public bodies are subject to high levels of challenge with delivery of the Network North commitments, wider rail reform, the heightened focus on decarbonisation, industrial action, the wars in Ukraine/Middle East and the General Election. With senior management attention directed to these it remains also important that there is adequate oversight and capability across the core areas to ensure a robust control environment is operating in 2024 to 2025.

Auditors

This section sets out the costs of auditing the DfT group accounts along with the costs of auditing the organisations which form part of the DfT group. Audit fees are not included in this section for other entities who are outside DfT’s consolidation boundary. The Comptroller and Auditor General (C&AG) carries out the audit of the consolidated accounts of the DfT group, as well as the audits of the following executive agencies:

• Maritime and Coastguard Agency
• Driver and Vehicle Licensing Agency
• Driver and Vehicle Standards Agency
• Vehicle Certification Agency
• Active Travel England

These audits are conducted under the Government Resources and Accounts Act 2000 (GRAA), at an annual notional cost of £1,268,500 (2022 to 2023: £1,025,000).

The audits of the following entities are completed by the C&AG, but incur a cash or real charge of £1,640,300 (2022 to 2023: £1,531,800):

• Network Rail Ltd (and its substantial subsidiary bodies, Network Rail Infrastructure Ltd and Network Rail Infrastructure Finance plc)
• National Highways
• British Transport Police Authority
• HS2 Ltd
• Transport Focus
• CTRL Section 1 Finance PLC
• LCR Finance PLC
• East West Rail Ltd

Network Rail’s audit fee of £729,300 includes £38,000 for other audit-related services including the audit of the Network Rail Regulatory accounts.

In addition to these entities, the C&AG audits the accounts of the General Lighthouse Fund (GLF), which consolidates the General Lighthouse Authorities (GLAs). While the GLAs are consolidated into the DfT group, the GLF is not consolidated. As such, the audit fee for the GLF is not included in this total. The audit fee for the GLF for 2023 to 2024 is £128,000 (2022 to 2023: £140,000).

PwC audits the following entities, providing audit assurance to the C&AG as the group auditor. These audits incur a real cost charge of £292,616 (2022 to 2023: £276,185):

• Smaller Network Rail subsidiary bodies
• Train Fleet (2019) Ltd

Deloitte audits the following entity, providing audit assurance to the C&AG the group auditor. This audit incurs a real cost charge of £161,500 (2022 to 2023: £175,000):

• Air Travel Trust Fund

BDO LLP audits the following entity, providing audit assurance to the Comptroller and Auditor General as the group auditor. This audit incurred a real cost charge of £9,300 (2022 to 2023: £9,300):

• Air Safety Support International Ltd

The National Audit Office (NAO) in its work to scrutinise public spending for Parliament also performs other work under statute, including value-for-money and assurance work.

Accounting officer system statement

Accounting officer system statement was published in 2022 and is scheduled to be updated and published later in 2024.

Correspondence

DfT aims to respond to correspondence from members of the public in 20 working days. During 2023 to 2024, 8,978 cases were received (a 31% decrease on 2022 to 2023) and 95% of replies were sent on time. DfT’s target response time for correspondence from MPs, Peers and key stakeholders was 10 working days. DfT received 9,835 cases in 2023 to 2024 (a 5% increase on the 2022 to 2023) and 62% of replies were sent by the target deadline.

Information rights, including personal data related incidents

Information rights

DfT and the executive agencies received 3410 requests for information under either the Freedom of Information Act 2000 (FOI) or the Environmental Information Regulations 2004 (EIR). DfT met the 20-working day statutory response deadlines in 94% of these cases. DfT publishes a list of FOI and EIR disclosure responses where some or all the requested information has been disclosed.

DfT also answered 19,047 valid requests from individuals exercising their rights under data protection legislation. These consisted mainly of subject access requests, 98% of which were answered within the statutory deadline.

Personal data related incidents

DfT holds personal data on millions of drivers in Great Britain, vehicle keepers across the UK plus those taking driving tests, driving instructors, and seafarers. Every year DfT process millions of transactions and billions of digital interactions, so we take the protection of personal data very seriously. During 2023 to 2024, DfT notified 6 breaches to the Information Commissioner’s Office (ICO). Every personal data related incident is investigated fully to identify the cause and ensure action is taken to reduce the likelihood of recurrence.

Complaints handling Parliamentary and Health Service Ombudsman

DfTc is committed to responding to complaints within 20 working days and our public bodies, including executive agencies have their own complaints procedures and timelines within an overall DfT policy framework in accordance with the Parliamentary and Health Service Ombudsman Principles.

The number of complaints handled by DfTc, our executive agencies, and other public bodies (where data is available) during 2023 to 2024 and the previous 3 years is provided in DfT’s independent complaints assessors (ICA) annual report, including lessons learnt and subsequent changes to complaint handling and / or service delivery to reduce complaints.

Complaints to the Parliamentary and Health Service Ombudsman

The Parliamentary and Health Service Ombudsman (PHSO) investigates complaints about DfT and its public bodies when referred by an MP on behalf of a complainant. Generally, PHSO expect ICAs to have reviewed the matter before they consider investigating. Where PHSO believes there is evidence that there has been maladministration, unfair treatment, or poor service, it will investigate the issues, review the remedy provided, and may recommend further actions to resolve the matter. All recommendations made by PHSO were implemented during 2023 to 2024 by DfT.

The data supplied in tables 8 and 9 have been supplied by PHSO and corroborated by DfT, and the public bodies accordingly.

Completed investigations often occur from cases accepted for detailed investigation in previous years.

Table 8: number of complaints investigated, upheld, and not upheld by PHSO

Organisation	Complaints accepted for detailed investigation 2023-24	Complaints accepted for detailed investigation 2022-23	Complaints accepted for detailed investigation 2021-22	Investigations upheld or partly upheld 2023-24^	Investigations upheld or partly upheld 2022-23^	Investigations upheld or partly upheld 2021-22^	Investigations not upheld or discontinued 2023-24	Investigations not upheld or discontinued 2022-23	Investigations not upheld or discontinued 2021-22
DfTc	0	0	0	0	1	0	0	0	0
DfT ICAs	0	0	2	0	0	1	0	0	0
CAA	1	0	1	0	1	1	0	0	0
DVLA	3	1	4	2	4	5	1	3	2
DVSA	0	0	0	0	0	0	0	0	0
National Highways	0	0	2	0	0	2	0	0	0
HS2 Ltd	1	0	0	0	0	0	0	0	0
MCA	0	0	0	0	0	0	0	0	0
VCA	0	0	0	0	0	0	0	0	0
Total	5	1	9	2	6	9	1	3	2

NB: Completed investigations often occur from cases accepted for detailed investigation in previous years and compliance with them follows.

Investigations into complaints by PHSO into DfT or its public bodies

When PHSO concludes an investigation, it may do so in the year(s) following when it was accepted. In addition, there can be several recommendations made to DfT or its public bodies to resolve a complaint, and the time between the conclusion of an investigation, issue of a report with recommendations, and when those recommendations are complied with or not can fall into a subsequent year.

Table 9 includes the number of recommendations made by PHSO following an investigation of a complaint and whether those have been complied with over the last 3 years.

Table 9: recommendations made by PHSO and compliance

DfT centre or DfT public body	No. of cases with recommendations 2023-24	No. of cases with recommendations 2022-23	No. of cases with recommendations 2021-22	No. of recommendations 2023-24	No. of recommendations 2022-23	No. of recommendations 2021-22	Closed: complied with 2023-24	Closed: complied with 2022-23	Closed: complied with 2021-22	Open: in compliance 2023-24	Open: in compliance 2022-23	Open: in compliance 2021-22
DfTc	0	1	1	0	4	1	3	3	1	1	2	0
DVLA	2	4	5	3	13	9	1	13	8	1	0	1
HS2	0	0	2	0	2	0	0	2	0	0	0	0
CAA	0	1	1	0	4	1	1	4	1	0	0	0

It was reported in 2019 to 2020 as 7 complied and 1 open, this open recommendation was subsequently complied with.

Better regulation

DfT has continued to ensure that regulation in the transport sector is proportionate and does not impose unwarranted burdens on business.

Between January and December of 2023, DfT produced 71 regulatory impact and de minimis assessments and post-implementation reviews. Of these, 7 were submitted to the Regulatory Policy Committee for formal independent scrutiny and all received green ‘fit-for-purpose’ ratings.

These include a green rating for the final stage impact assessments for the Automated Vehicles Bill 2023. The successful introduction of the Automated Vehicles Bill demonstrates DfT’s commitment to maintaining safety whilst incentivising innovation as technology advances in the transport sector.

DfT also received a green rating for the Strikes (Minimum Service Levels: Passenger Railway Services) Regulations 2023, working at pace to ensure the evidence base was fit for purpose.

DfT has also engaged closely with Department for Business and Trade (DBT) and the Regulatory Policy Committee on the development and launch of the new Better Regulation Framework. More recently, DfT has been disseminating information and training, as well as developing and updating internal guidance. Over the coming year, DfT will continue to work with the DBT and Regulatory Policy Committee to help DfT and regulators minimises burdens on businesses and consumers.

Health and safety

In line with DfT’s safety and security strategic enabler, managing health and safety risks is fundamental to protecting our people, our assets and our reputation.

DfT’s Health and Safety Group Forum brings together the occupational health and safety leads from across DfT to collaborate on common issues and to share best practice. The dedicated teams engage with stakeholders, trade unions and other government departments to progress strategic and operational workstreams. Some of the members of the wider DfT group have purchased the Health and Safety Executive (HSE) Safety Climate Tool in order to improve safety culture throughout their organisations.

During 2023 to 2024 DfT also responded to 2 large-scale issues.

1. A UK-wide safety alert on the risk of building collapse from the use of reinforced autoclaved aerated concrete (RAAC) in building construction. DfT conducted surveys of our estate and where applicable, RAAC management plans were implemented to ensure the structural integrity of all DfT premises.
2. Preparation and readiness plans for the government-wide 60% attendance policy which commenced in April 2024, ensuring DfT workplaces, systems and policies were ready for mobilisation.

The chart below shows the number of incidents reportable to the Health and Safety Executive (HSE) during 2020 to 2021 to 2023 to 2024, under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR).

Table 10: 2021-2022 to 2023-2024 RIDDOR reportable incidents for DfTc and executive agencies

Figure 9: 2021-2022 to 2023-2024 RIDDOR reportable incidents for DfTc and executive agencies

The increase in DVLA RIDDOR reporting numbers compared to the previous year has been reviewed and changes to the reporting requirements will be introduced to prevent over reporting in the future.

Conclusion

As Principal Accounting Officer, I have responsibility for the effectiveness of the system of internal control. Management assurance is confirmed by executive managers within DfT, who are responsible for upholding a robust internal control framework; and by our agencies and arm’s length bodies who are responsible for their internal controls and delegated spending. I am supported by the work of internal audit and by the comments made by the National Audit Office in their management letter and other reports. Based on these assurances, I am content that DfT upheld a satisfactory level of internal control and corporate governance throughout the reporting period.

People and remuneration report

Our staff numbers (audited information)

Details on the average number of whole-time equivalent persons employed during the year, the staff costs and gender composition are set out in the tables below.

Table 1: staff numbers (departmental group including delivery bodies) – average number of staff, permanently employed staff, others, ministers and special advisers

Average number of staff	Permanently employed staff	Others	Ministers	Special advisers	Total 2023-24	Total 2022-23
DfTc	3,752	22	5	4	3,783	3,735
Agencies	11,582	72	0	0	11,654	11,785
Other delivering bodies	54,366	1,538	0	0	55,904	55,726
Total average number of persons employed	69,700	1,632	5	4	71,341	71,246

1. The special adviser numbers are taken on a snapshot date as of 31 March 2024.

Table 2: staff costs £m (audited information) (numbers are rounded to nearest million)

Costs £M	Permanently employed staff	2023-24 other staff	Total	2022-23 total
Wages and salaries	3,756	50	3,806	3,477
Social security costs	414	1	415	391
Other pension costs	374	1	375	352
Sub total	4,544	52	4,596	4,220
Less recoveries in respect of outward secondments	(1)	0	(1)	(2)
Less capitalised staff costs	(1,212)	(24)	(1,236)	(1,201)
Total net costs	3,331	28	3,359	3,017
Core department and agencies	821	18	839	779
Departmental group	3,331	28	3,359	3,017

‘Other staff’ includes ministers and special advisers, who were paid £246,000 and £0,000 respectively (2022 to 2023: £261,000 and £0,000)

Special advisers are temporary civil servants. To improve efficiency, the administration of staff costs for all special advisers across government is managed by the Cabinet Office, with corresponding budget cover transfers. Therefore, all special adviser costs are reported in the Cabinet Office annual report and accounts. Special advisers remain employed by the respective department of their appointing minister.

Table 3: number of persons of each sex who were employees of DfT and its executive agencies as at 31 March 2024

	Men at 31 March 2024	Women at 31 March 2024	Men at 31 March 2023	Women at 31 March 2023
Number of persons of each sex who were DfTc Permanent Secretary and Directors General	4	4	7	3
Number of persons of each sex who were senior managers of DfTc of the Senior Civil Service (excluding above)	112	119	116	109
Number of persons of each sex who were employees of DfTc	2,031	1,751	2,113	1,721
Number of persons of each sex who were employees of DfT agencies	6,919	5,925	6,888	5,849

Staff movement

This data refers to the DfT central department.

Annual staff turnover, i.e., staff leaving DfTc, was 16.8% during 2023 to 2024. Whilst this is lower than 2022 to 2023 which was 17.7%, it remains significantly higher than the 10 years prior to 2022. Mostly, this can be attributed to the buoyancy of the cross-government jobs market which is the destination for a majority of DfTc’s leavers who are seeking, career progression and / or increased salaries outside DfTc also sees around 10% of its staff promoted internally each year and, whilst this is a positive aspect of DfTc as a great place to work, it does equate to additional turnover and a need for more recruitment to backfill vacancies. To mitigate the impacts of high turnover, DfTc is putting in place a comprehensive retention plan. This is based on the key reasons for staff leaving DfTc, which has been gleaned through analysis of exit surveys completed by a majority of leavers over the last 2 years.

Table 4: number of staff loaned into DfTc

Staff loaned in to DfTc	Total loaned in	Loaned in short term (6 months or less)	Loaned in long term (more than 6 months)
EO	2	2	0
HEO	14	1	13
SEO	5	3	2
Grade 7	4	1	3
Grade 6	5	1	4
SCS	0	0	0
Total	30	8	22

The cost of staff on loan to the department in 2023 to 2024 is £782,000 (2022 to 2023: £961,000). There were 6 staff on loan to the department where we did not pay their salary costs which will have been paid for by their home department.

During 2023 to 2024, there was a decrease in the number of loans into the department. Loans have been used largely as a short-term solution for resourcing priority areas. There are longer-term loans in place to fill key roles and support the career development of these individuals, this can be seen in an increase in the average duration of loans

Resourcing

DfTc and its executive agencies have control systems requiring recruitment to be approved by the most appropriate authority up to and including directors general. 3495 posts were recruited to DfT Group during 2023 to 2024. During the reporting year, there were 3 exceptions (exemption one) to the Civil Service commission recruitment principles in relation to fair and open competition.

Service contracts

The Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit based on fair and open competition. The recruitment principles published by the Civil Service Commission specify the circumstances when appointments may be made. Unless otherwise stated below, the officials covered by this report hold appointments which are open-ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service compensation scheme.

Remuneration

Remuneration policy – Senior Civil Service

Senior Civil Service (SCS) pay, and conditions are not delegated to individual departments. The SCS is a corporate resource, employed with a common framework of terms and conditions across government departments.

Recommendations on SCS remuneration are provided by the Senior Salaries Review Body (SSRB) in an annual report to the Prime Minister. The government’s response to the recommendations of the SSRB is communicated to departments by the Cabinet Office through annual SCS pay guidance, which set out the parameters for base pay and non-consolidated pay for the relevant financial year.

DfT’s Pay and Performance Committee takes decisions on the remuneration of our senior civil servants, in line with this central guidance.

Performance management – Senior Civil Service

DfT follow the Cabinet Office performance management framework. Performance outcomes are assessed against Cabinet Office determined core objectives, and relative to SCS peers in-year to determine allocation to a performance group, to which non-consolidated variable pay is linked. There are 4 performance groups:

• exceeding
• high performing
• achieving
• partially met

To be allocated to the exceeding performance group, an individual must have performed above and beyond their agreed stretching objectives, as well as evidenced exemplary behaviours throughout the performance year.

Number of Senior Civil Service staff by band (audited information)

The number of SCS employed by DfTc, including its executive agencies (DVLA, MCA, DVSA, VCA and ATE), as at 31 March 2024, is disaggregated in Table 5.

Table 5: number of SCS within DfTc and its agencies by salary range

Salary range – 31 March 2024 (1)	Distribution of senior civil service salaries within the department – staff numbers (2)
£75,000-£79,999	51
£80,000-£84,999	75
£85,000-£89,999	37
£90,000-£94,999	13
£95,000-£99,999	15
£100,000-£104,999	31
£105,000-£109,999	8
£110,000-£114,999	5
£115,000-£119,999	8
£120,000-£124,999	3
£125,000-£129,999	4
£130,000-£134,999	6
£135,000-£139,999	6
£140,000-£144,999	3
£145,000-£149,999	0
£150,000-£154,999	2
£155,000-£159,999	1
£160,000-£164,999	0
£165,000-£169,999	0
£170,000-£174,999	0
£175,000-£179,999	0
£180,000-£185,000	0
£185,000-£189,999	1
£260,000-£264,999	1
Total SCS staff numbers	270

1. The minimum annual salary for SCS is £75,000.

2. Staff numbers are actual, not full-time equivalents, so a part-time member of staff counts as 1.

Pay and Performance Committee

Pay and Performance Committee members

• Bernadette Kelly – Permanent Secretary, Department for Transport
• Jo Shanmugalingam – Second Permanent Secretary, Department for Transport (Membership from 30 May 2023)
• Alan Over – Director General, High Speed Rail Group
• Nick Joyce – Director General, Corporate Delivery Group
• Emma Ward – Director General, Roads and Local Group
• David Hughes – Director General, Rail Infrastructure Group (Membership until 15 August 2023)
• Anit Chandarana – Interim Director General, Rail Infrastructure Group (Membership from 29 August 2023 – 31 March 2024)
• Conrad Bailey – Director General, Rail Strategy and Services Group * Marianthi Leontaridi – Director General Aviation, Maritime and Security Group * James Norton – Director, Group Human Resources

The remit of Pay and Performance Committee includes making pay, performance, talent and development decisions for directors (SCS2) and deputy directors (SCS1). The permanent secretaries, in consultation with the Group HR Director, decide on pay and talent for directors general (SCS3).

Remuneration (including salary) and pension entitlements

The following sections on executive board members’ remuneration and pension disclosures are subject to audit.

Executive members of the DfT Board

Salary

‘Salary’ includes gross salary; reserved rights to London weighting or London allowances; recruitment and retention allowances; minsters and permanent secretaries offices allowances and any other allowance to the extent that it is subject to UK taxation. This report is based on accrued payments made by DfT, and thus recorded in these accounts.

Bonuses are based on performance levels attained and relate to the relevant performance year. Under SCS pay guidance we are permitted to pay in-year awards related to recognise in-year performance as well as end-year bonuses to those determined ‘Exceeding’ through the SCS appraisal process which are paid in arrears in the next financial year. The bonuses reported in 2023 to 2024 relate to in-year performance during the 2023 to 2024 performance year and end-year performance for the 2022 to 2023 performance year.

Benefits in kind

The monetary value of benefits in kind covers any benefits provided by DfT and treated by HM Revenue and Customs as a taxable emolument. There were no benefits in kind reported in 2023 to 2024 or 2022 to 2023 – for executive board members.

Compensation payments

There were no compensation payments for executive members of the DfT board in 2023 to 2024.

Table 6: officials’ remuneration

Officials	2023-24 Salary (£000)	2023-24 Full Year Equivalent Salary (£000)	2023-24 Bonus Payments (£000)	2023-24 Pension Benefits (£000)	2023-24 Total Benefits (£000)	2022-23 Salary (£000)	2022-23 Full Year Equivalent Salary (£000)	2022-23 Bonus Payments (£000)	2022-23 Pension Benefits (£000)	2022-23 Total Benefits (£000)
Bernadette Kelly (Permanent Secretary)	185-190	185-190	10-15	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	175-180	175-180	0	0	175-180
Joanne Shanmugalingam (Second Permanent Secretary) from 30 May 2023	115-120	150-155	10-15	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	N/A	N/A	N/A	N/A	N/A
Nick Joyce (Director General)	155-160	155-160	5-10	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	145-150	145-150	10-15	25	180-185
Emma Ward (Director General)	140-145	140-145	5-10	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	130-135	130-135	10-15	-2	140-145
David Hughes (Director General) until July 2023	55-60	150-155	0	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	150-155	150-155	0	0	150-155
Conrad Bailey (Director General)	140-145	135-140	0-5	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	125-130	125-130	5-10	-23	110-115
Marianthi Leontaridi (Director General)	130-135	130-135	0-5	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	125-130	125-130	10-15	149	280-285
Alan Over (Director General)	135-140	135-140	10-15	Not available for 2023-24 as per point (1) below	Not available for 2023-24 as per point (1) below	45-50	125-130	5-10	47	100-105

(1) Accrued pension benefits for directors are not included in this table for 2023 to 2024 due to an exceptional delay in the calculation of these figures following the application of the public service pension remedy (McCloud judgement).

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. Before 1 April 2015, the only scheme was the Principal Civil Service Pension Scheme (PCSPS), which is divided into a few different sections – classic, premium, and classic plus provide benefits on a final salary basis, whilst nuvos provides benefits on a career average basis. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis. All newly appointed civil servants, and the majority of those already in service, joined the new scheme.

The PCSPS and alpha are unfunded statutory schemes. Employees and employers make contributions (employee contributions range between 4.6% and 8.05%, depending on salary). The balance of the cost of benefits in payment is met by monies voted by Parliament each year. Pensions in payment are increased annually in line with the Pensions Increase legislation. Instead of the defined benefit arrangements, employees may opt for a defined contribution pension with an employer contribution, the partnership pension account.

In alpha, pension builds up at a rate of 2.32% of pensionable earnings each year, and the total amount accrued is adjusted annually in line with a rate set by HM Treasury. Members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004. All members who switched to alpha from the PCSPS had their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha.

The accrued pensions shown in this report are the pension the member is entitled to receive when they reach normal pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over normal pension age. Normal pension age is 60 for members of classic, premium, and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. The pension figures in this report show pension earned in PCSPS or alpha – as appropriate. Where a member has benefits in both the PCSPS and alpha, the figures show the combined value of their benefits in the 2 schemes but note that the constituent parts of that pension may be payable from different ages.

When the government introduced new public service pension schemes in 2015, there were transitional arrangements which treated existing scheme members differently based on their age. Older members of the PCSPS remained in that scheme, rather than moving to alpha. In 2018, the Court of Appeal found that the transitional arrangements in the public service pension schemes unlawfully discriminated against younger members.

As a result, steps are being taken to remedy those 2015 reforms, making the pension scheme provisions fair to all members. The public service pensions remedy is made up of 2 parts. The first part closed the PCSPS on 31 March 2022, with all active members becoming members of alpha from 1 April 2022. The second part removes the age discrimination for the remedy period, between 1 April 2015 and 31 March 2022, by moving the membership of eligible members during this period back into the PCSPS on 1 October 2023. This is known as ‘rollback’.

For members who are in scope of the public service pension remedy, the calculation of their benefits for the purpose of calculating their cash equivalent transfer value and their single total figure of remuneration, as of 31 March 2023 and 31 March 2024, reflects the fact that membership between 1 April 2015 and 31 March 2022 has been rolled back into the PCSPS.

Although members will in due course get an option to decide whether that period should count towards PCSPS or alpha benefits, the figures show the rolled back position i.e., PCSPS benefits for that period.

The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal and General Mastertrust. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member). The employee does not have to contribute but, where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill health retirement).

Further details about the Civil Service pension arrangements can be found at the website www.civilservicepensionscheme.org.uk

Cash equivalent transfer values

A cash equivalent transfer value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost.

CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Pay multiples for DfT and its executive agencies (including agency staff and secondees)

The following section on pay multiples is audited information.

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the lower quartile, median and upper quartile remuneration of the organisation’s workforce.

Table 7: percentage change in salary and bonuses for the highest paid director and the staff average for 2023 to 2024

	Salary and allowances	Bonus payments
Staff average	5.4%	-14.5%
Highest paid director	5.6%	n/a

A bonus was received for the highest paid director in 2023 to 2024 but no bonus was paid in 2022 to 2023.

Table 8: ratio between the highest paid directors’ total remuneration and the lower quartile, median and upper quartile for staff pay

	2023-24	2022-23
Band of highest paid board member’s total remuneration (£000)	195-200	175-180
Median remuneration (£)	30,446	28,872
Ratio	6.5	6.1
25th percentile remuneration (£)	26,037	23,946
Ratio	7.6	7.4
75th percentile remuneration (£)	43,897	41,228
Ratio	4.5	4.3

Table 9: lower quartile, median and upper quartile for staff pay for salaries and total pay and benefits

	Lower quartile 2023-24	Lower quartile 2022-23	Median 2023-24	Median 2022-23	Upper quartile 2023-24	Upper quartile 2022-23
Salary	23,847	22,497	28,704	27,448	41,512	39,823
Total pay and benefits	26,037	23,946	30,466	28,872	43,897	41,228

The banded remuneration of the highest paid executive board member in DfT in the financial year 2023 to 2024 was £195,000 to £200,000 (2022 to 2023 was £175,000 to £185,000).

This was 6.4 times the median remuneration of the workforce, which was £30,446 (2022 to 2023: 6.1 times and £28,872); 7.6 times the lower quartile remuneration of the workforce, which was £26,037; and 4.5 times the upper quartile remuneration of the workforce, which was £43,897. This increase in pay multiples was due to a bonus payment being awarded in 2023 to 2024 to the highest paid executive board member.

The ratios are calculated by taking the mid-point of the banded remuneration of the highest paid executive board member and calculating the ratio between this and the lower quartile, median and upper quartile remuneration of the department’s staff. This ratio is based on the full-time equivalent staff of DfT at the end of March on an annualised basis. This calculation includes the central department, DVLA, DVSA, MCA and VCA.

In 2023 to 2024 one employee (2022 to 2023: one employee) received remuneration more than the highest paid executive board member. Remuneration ranged from £21,209 to £274,300 (2022 to 2023: £19,000 to £266,000)

Total remuneration includes salary, non-consolidated performance-related pay and benefits in kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions.

Pension arrangements across the departmental group

Employees of entities included in these accounts benefit from a range of pension scheme arrangements. Some are members of employee-specific defined benefit schemes, set out in note 24 to the financial statements. Others may be members of the Principal Civil Service Pension Scheme (PCSPS), or of defined contribution arrangements. The key schemes and associated costs for the departmental group are disclosed below.

The PCSPS is an unfunded multi-employer defined benefit scheme, but DfT is unable to identify its share of the underlying liabilities. A full actuarial valuation was carried out in 2020. Details can be found in the resource accounts of the Cabinet Office: Civil Superannuation Annual Report and Accounts.

For 2023 to 2024, employers’ contributions of £146.29 million were payable to the PCSPS (2022 to 2023: £138.76 million) at one of 4 rates in the range 26.6% to 30.3% (2022 to 2023: 26.6% to 30.3%) of pensionable pay, based on salary bands. The Scheme’s Actuary reviews employer contributions every 4 years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2023 to 2024 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Employees can opt to open a partnership pension account (a stakeholder pension with an employer contribution). For 2023 to 2024, employers’ contributions of £1.25 million (2022 to 2023: £1.21 million) were paid to Legal and General. Employer contributions are age-related and range from 8% to 14.75% of pensionable pay. Employers also match employee contributions up to 3% of pensionable pay.

In addition, employer contributions of £43,157 0.5% (2022 to 2023: £41,845, 0.5%) of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service and ill health retirement of these employees.

The core department and its executive agencies neither owed or had prepaid any contributions to partnership pension providers as at 31 March 2023 and 2024.

There were 14 early retirements as a result of ill-health (2023 to 2024: 8).

Network Rail

Network Rail has 2 defined pension schemes. The RPS and CARE schemes are both shared cost in nature, so the cost of benefits being earned and the cost of funding any shortfall in the schemes are normally split in the proportion 60:40 between the group and the members. In practice, the contributions are adjusted at each triennial valuation to reflect the funding position of the schemes at that time. For 2023 to 2024, the current service cost was £176 million (2022 to 2023: £324 million).

On 1 April 2004, a defined contribution pension scheme was introduced, the Network Rail Defined Contribution Pension Scheme (NRDCPS). This is an auto-enrolment scheme for all new employees of Network Rail, except those who have the legal right to join the Railway Pension Scheme (RPS), in compliance with regulations made under the Pensions Act 2008. Any employee who wishes to transfer from the Network Rail Section of the RPS to the NRDCPS is entitled to do so. For 2023 to 2024 employers’ contributions of £24 million were payable into this scheme (2022 to 2023: £27 million).

National Highways

As an employer we offer employees access to; The Civil Service Pension Schemes, National Highways Personal Pension Scheme and the Mercer Defined Benefit Master Trust (previously known as the Federated Pension Scheme). These are described in more detail below including the eligibility criteria applied.

Under the PCSPS, CSOPS, and the NHPP, pension liabilities do not rest with the company. For these schemes, employer pension contributions are recognised as they become payable following qualifying service by employees.

The Principal Civil Service Pension Scheme

This is an unfunded public sector pension scheme, operated under the cost control mechanism as outlined in Section 12 of the Public Service Pension Act 2013. A full actuarial valuation was carried out as at 31 March 2016. Details regarding the scheme can be found in the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservice.gov.uk/pensions).

The operation of the cost control mechanism in relation to the 2016 valuations was paused on 30 January 2019. Contribution rates for employers and members have, therefore, remained unchanged from the previous year. For the year to 31 March 2024, employers’ contributions of £21.5 million (2022 to 2023 £21.5 million) were payable to the Principal Civil Service Pension Scheme and Public Service (Civil Service and Others) Pensions Scheme at 1 of 4 rates in the range 26.6% to 30.3% of pensionable earnings, based on salary bands.

Our people can choose to switch to a Partnership Pension Account. This is a defined contribution scheme operated by Legal and General, the scheme manager (Cabinet Office) appointed single provider. Employer contributions are age-related and range from 8% to 14.75%. The company also matches employee contributions up to 3% of pensionable earnings. Contributions due to the partnership pension account as at 31 March 2024 were £0.13 million (2022 to 2023 £0.11 million). In addition, employer contributions of £0.005 million (2022 to 2023 £0.003 million). 0.5% of pensionable pay, were payable to the Principal Civil Service Pension Scheme to cover the cost of the future provision of lump sum benefits on death in service or ill health retirement of these employees.

The National Highways Pension Plan

Employees who joined the company with effect from 1 April 2015 are eligible to participate in the National Highways Personal Pension Scheme. The pension scheme came into effect on 1 April 2015 and is a defined contribution group personal pension plan provided by a Legal and General Ltd.

As this is a defined contribution scheme, our company incurs no liability for future pension costs of members of the pension plan. For the year to 31 March 2024, employers’ contributions of £31.6 million (2022 to 2023 18.7 million) were payable to the plan.

The Mercer Defined Benefit Master Trust

We are a participating employer within the multi-employer Mercer Defined Benefit Master Trust scheme. It is operated by Mercers, with the organisation holding responsibility for future member pension costs for the 2 sections to which we are registered as sponsoring employer: the National Highways Company Limited Section and the National Highways (Severn Bridges Section).

Mercers both manage and administrate the scheme, with trusteeship provided by professional trustees: PAN Trustees, Independent Trustee Services and PTL. We are required to meet each section’s liabilities and full actuarial valuations are completed by the scheme’s appointed trustees on a triennial basis.

The National Highways Company Limited Section

This section was established on 1 July 2016 to protect the defined benefit pension rights of individuals joining the company via a ‘transfer of undertakings regulations’. The current membership is low, and instances of new joiners are limited.

The National Highways (Severn Bridges) Section

This section was established when the existing Severn River Crossing Pension Fund was wound up and transferred on the 31 December 2019, when we assumed responsibility for the Severn River Crossing from Severn River Crossing Plc. The current active membership of the scheme is limited; this section is made up of predominately deferred or pensioner members. The contribution rates are based on an actuarial valuation of the scheme as at 5 April 2020, outlined in the statement of funding principle and agreed with the trustees in August 2021. Employer contributions are 38.3% of pensionable earnings.

Employer’s contributions of £0.1 million were paid to this section in the period to 31 March 2024 (2022 to 2023 £0.1 million).

The actuarial valuation of this section as at 5 April 2020 revealed a funding shortfall. To eliminate the funding shortfall, a recovery plan was agreed with the trustees with additional contribution to be paid of £1.1 million per annum until 31 March 2024. A preliminary actuarial valuation was received for the 5 April 2023 triannual review, which shows a further shortfall and funding is currently being agreed with the trustees. A provision for £4.8 million has been recognised in the accounts.

British Transport Police

British Transport Police has 2 defined benefit pension schemes; the British Transport Police Force Superannuation Fund (‘Police Officer scheme’) and the British Transport Police Shared Cost Section of the Railways Pension Scheme (‘Staff scheme’). Both schemes registered pension schemes are intended to be a fully funded providing benefits on a ‘defined benefit’ basis. For 2023 to 2024, the current service cost for both schemes were £41.5 million (2022 to 2023: £105.5 million).

Ministers

The following sections on ministerial remuneration and pension disclosures are audited information.

Salary

Salary’ includes gross salary; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; ministers and permanent secretaries offices allowances and any other allowance to the extent that it is subject to UK taxation. This report is based on accrued payments made by DfT and thus recorded in these accounts.

In respect of ministers in the House of Commons, departments bear only the cost of the additional ministerial remuneration; the salary for their services as an MP £84,144 (from 1 April 2022) and various allowances to which they are entitled are borne centrally.

However, the arrangement for ministers in the House of Lords is different in that they do not receive a salary but rather an additional remuneration, which cannot be quantified separately from their ministerial salaries. This total remuneration, as well as the allowances to which they are entitled, is paid by DfT and is therefore shown in full in the figures below.

Benefits in kind

The monetary value of benefits in kind covers any benefits provided by the department and treated by HM Revenue and Customs as a taxable emolument. There were no benefits in kind reported in 2023 to 2024 for ministers.

Compensation for loss of office

Jesse Norman MP left government 13 November 2023. He received a compensation of £7,920.

Table 10: ministers’ remuneration (audited information)

Ministers	2023-24 salary (£)	2023-24 full year equivalent salary (£)	2023-24 pension benefits (to nearest £1000)	2023-24 total benefits (to nearest £1000)	2023-24 severance payments (to nearest £1000)	2022-23 salary (£)	2022-23 full year equivalent salary (£)	2022-23 pension benefits (to nearest £1000)	2022-23 total benefits (to nearest £1000)	2022-23 severance payments (to nearest £1000)
Rt Hon Mark Harper Secretary of State From 25 October 2022	67,505	67,505	18,000	86,000		29,397	67,505	7,000	36,000
Huw Merriman MP Minister of State From 27 October 2022	31,680	31,680	8,000	40,000		13,626	31,680	3,000	17,000
Rt Hon Jesse Norman MP Minister of State From 26 October 2022 to 13 November 2023	19,624	31,680	5,000	24,000	8,000	13,710	31,680	3,000	17,000
Richard Holden MP Parliamentary Under Secretary of State From 28 October 2022 to 12 November 2023	13,860	22,375	3,000	16,000		9,563	22,375	2,000	12,000
Baroness Vere Parliamentary Under Secretary of State From 2 August 2019 to 13 November 2023	49,819	70,969	10,000	60,000		70,969	70,969	20,000	91,000
Anthony Browne MP Parliamentary Under Secretary of State From 13 November 2023	8,515	22,375	2,000	11,000
Guy Opperman MP Parliamentary Under Secretary of State From 13 November 2023	7,458	22,375	2,000	10,000
Lord Davies Parliamentary Under Secretary of State From 14 November 2023	35,778	70,969	9,000	44,000

Ministerial pensions

Pension benefits for ministers are provided by the Parliamentary Contributory Pension Fund (PCPF). The scheme is made under statute and the rules are set out in the ministers’ etc. Pension Scheme 2015.

Those ministers who are MPs may also accrue an MP’s pension under the PCPF (details of which are not included in this report).

Benefits for ministers are payable from State Pension age under the 2015 scheme. Pensions are re-valued annually in line with pensions increase legislation both before and after retirement. The contribution rate from May 2015 is 11.1% and the accrual rate is 1.775% of pensionable earnings.

The figure shown for pension value includes the total pension payable to the member under both the pre- and post-2015 ministerial pension schemes.

Table 11: ministerial pensions (audited information)

Ministers	Accrued pension at age 65 as at 31/3/2024 (£000)	Real increase in pension at age 65 (£000)	CETV at 31/03/2024 (£000)	CETV at 31/03/2023 (£000)	Real increase in CETV funded by taxpayer (£000)
Rt Hon Mark Harper Secretary of State From 25 October 2022	5-10	0-2.5	135	105	13
Huw Merriman MP Minister of State From 27 October 2022	0-5	0-2.5	13	4	6
Rt Hon Jesse Norman MP Minister of State From 26 October 2022 to 13 November 2023	0-5	0-2.5	67	57	4
Richard Holden MP Parliamentary Under Secretary of State From 28 October 2022 to 12 November 2023	0-5	0-2.5	5	2	1
Baroness Vere Parliamentary Under Secretary of State From 2 August 2019 to 13 November 2023	5-10	0-2.5	149	131	7
Anthony Browne MP Parliamentary Under Secretary of State From 13 November 2023	0-5	0-2.5	3	0	2
Guy Opperman MP Parliamentary Under Secretary of State From 13 November 2023	0-5	0-2.5	72	68	2
Lord Davies Parliamentary Under Secretary of State From 14 November 2023	0-5	0-2.5	33	23	7

‘Pensions benefit’: the value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) less (the contributions made by the individual). The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.

Cash equivalent transfer values

This is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the pension benefits they have accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total ministerial service, not just their current appointment as a minister. CETVs are calculated in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

The real increase in the value of the CETV

This is the element of the increase in accrued pension funded by the Exchequer. It excludes increases due to inflation and contributions paid by the minister. It is worked out using common market valuation factors for the start and end of the period.

Non-executive board members

The following section on non-executive board members’ (NEBM) remuneration is subject to audit.

Each of the NEBMs, Ian King, Richard Keys, Tony Poulter, Tracy Westall, Ranjit Baxi and Dame Sarah Storey, is entitled to claim annual fees, currently £15,000 per annum, and reasonable expenses (including travel and subsistence in line with the department’s policy on such expenses).

Ian King, as the lead NEBM, receives an additional £5,000 in recognition of this role. Similarly, Richard Keys, as Chair of the department’s group audit and risk assurance Committee (GARAC), receives an additional £5,000 per annum in recognition of this role. The membership of the GARAC also includes Amarjit Aktar, Kathryn Cearns and Mark Bayley, who receive a fee for attending and preparing for meetings.

NEBMs are appointed on fixed terms. Their fees for 2023 to 2024 are set out in the table below.

Table 12: non-executive board members’ fees, 2023 to 2024

Non-executive board member fees	2023-24 (£000)	2022-23 (£000)
Ian King	20-25	20-25
Richard Keys	20-25	20-25
Tracy Westall	15-20	15-20
Anthony Poulter	15-20	15-20
Ranjit Baxi	15-20	15-20
Dame Sarah Storey	15-20	15-20
Group Audit and Risk Assurance Committee member fees	2023-24 (£000)	2022-23 (£000)
Kathryn Cearns	0-5	0-5
Amarjit Atkar (1)	0-5	0-5
Mark Bayley	0-5	0-5

(1) Amarjit Aktar stepped down as GARAC member in June 2023.

Off payroll engagements (audited information)

As part of the review of tax arrangements of public sector appointees published by the Chief Secretary to HM Treasury on 23 May 2012, departments and their public bodies were asked to report on their off-payroll engagements.

Data on these appointments is set out in tables 13 to 15.

Table 13: off-payroll engagements as at 31 March 2024, earning £245 per day or greater

	DfTc	BTPa	DVSA	DVLA	NH	HS2 Ltd	MCA	NR	VCA	ATE	EWRco	Total
No. of existing engagements as at 31 March 2024 , of which:	16	4	110	72	16	183	10	720	10	5	8	1154
No. that have existed for less than one year at time of reporting	9	3	97	54	10	80	4	253	2	5	4	521
No. that have existed for between one and 2 years at time of reporting	4	0	11	12	6	57	2	189	4	0	2	287
No. that have existed for between 2 and 3 years at time of reporting	2	0	2	4	0	26	1	140	2	0	2	179
No. that have existed for between 3 and 4 years at time of reporting	1	1	0	2	0	10	0	96	0	0	0	110
No. that have existed for 4 or more years at time of reporting	0	0	0	0	0	10	3	42	2	0	0	57

Organisations with a nil return are not included in the above table.

DfTc, its executive agencies, and public bodies have clearly defined governance and challenge processes in place to ensure they are compliant with the off-payroll (IR35) working rules. The Departmental Approvals Committee provides independent challenge and seeks assurance from the core department and the executive agencies that: every effort is being made to reduce its reliance on off-payroll resource; that a process is in place to transfer skills from off-payroll resource to permanent staff, and that alternative resourcing options have been considered. Similar governance arrangements exist within the arm’s length bodies.

DfT undertakes a risk-based sampling exercise where a selection of engagements, which include those previously assessed as being out-of-scope, are reassessed for consistency to ensure that the status of the role has not changed, which would thus deem them to be in-scope of IR35 legislation. Table 13 shows the number of engagements that were reassessed for consistency purposes during the 2023 to 2024 financial year.

DfT confirms that all the engagements reported in table 13 and table 14 where applicable have been considered using HMRC’s IR35 assessment tool, apart from those in HS2 Ltd, where the default is that all roles are assessed as being in scope of the off payroll working rules. The assessment tool is then only used when a role is identified to be out of scope, to assess its compliance against the legislation.

Table 14: all off-payroll engaged at any point between 1 April 2023 and 31 March 2024, earning £245 per day or greater

	DfTc	BTPa	DVSA	DVLA	NH	HS2 Ltd	MCA	NR	VCA	ATE	EWRco	Total
No. of engagements between 1 April 2023 and 31 March 2024, of which:	36	10	255	134	29	339	13	1085	10	7	16	1934
No. not subject to off-payroll legislation	30	8	248	132	29	2	8	989	2	5	15	1468
No. assessed in scope of IR35	5	2	0	1	0	320	3	88	0	0	1	420
No. assessed as out of scope of IR35	1	0	7	1	0	17	2	8	10	2	0	48
No. of engagements reassessed for consistency / compliance purposes during the year *	0	0	0	2	0	10	0	3	3	0	0	18
No. of engagements whose IR35 status changed following reassessment	0	0	0	0	0	0	0	0	0	0	1	1

Organisations with a nil return are not included in the above table.

These figures represent the number of engagements which were reassessed during the period to ensure compliance with IR35 legislation.

Core department (DfTc): engagements deemed in-scope of the legislation are recruited through the public-sector resourcing framework and placed on the payroll of the department’s chosen commercial framework supplier to ensure tax deductions are taken at source. Most off-payroll engagements were via umbrella companies and as a result, not subject to the IR35 legislation.

British Transport Police Authority (BTPa): a robust governance process is in place to challenge and control the use of off-payroll engagements and ensure compliance. No engagements were deemed to be out of scope, as a result no sample tests were undertaken to reassess consistency and compliance.

Driver and Vehicle Standards Agency (DVSA): use of contingent labour for FY 23-24 is managed tightly with only essential requests being agreed internally before being escalated for DfT DAC clearance.

These have been for roles where there is a temporary need for specialist skills e.g. project management on digital or estates projects and strategic communications or where DVSA has faced real challenges in the recruitment market for specific skill types e.g. financial accountants and digital development roles.

In line with HMT guidance on IR35 compliance, DVSA has extended its checking to include resources engaged through managed service arrangements. DVSA confirms that the managed services suppliers have them on their payroll or have carried out the necessary IR35 checks.

The DVSA report includes the managed services engagements hence the overall DVSA figure has increased. However, the actual figure for contingent labour hired directly by DVSA only increased by one worker in the reporting period.

Driver and Vehicle Licensing Agency (DVLA): all engagements are assessed for compliance prior to recruitment. Quarterly reviews were undertaken to assess engagements both in scope and out of scope of the IR35 legislation for consistency. Two engagements were reassessed for consistency and assurance purposes, without resulting in a change to their initial status.

National Highways (NH): a robust governance process is in place to challenge and control the use of off-payroll engagements and ensure compliance. We confirm that all existing off-payroll engagements, outlined above, have at some point been subject to a risk-based assessment.

This covered whether assurance was required around whether the individual is paying the right amount of tax; where necessary, further evidence was sought.

High Speed 2 Ltd (HS2 Ltd): a central recruitment authorisation panel ensures governance and challenge for the recruitment of off-payroll workers with representation from Finance and Human Resources. A process is in place to provide independent assessment of engagements deemed out-of-scope of the IR35 legislation to ensure compliance. In the period, 10 engagements were reassessed for consistency and compliance, and none resulted in a change to their initial status.

Maritime and Coastguards Agency (MCA): A process is in place to challenge the business on the use of off-payroll engagements. Hiring managers must critically consider alternative resourcing options including looking at in-house capability before off-payroll engagements are approved.

All requests for, and extensions of, contingent labour and off-payroll engagements require sign off from the MCA Departmental Approvals Committee.

It is the expectation of the MCA that all contingent labour is procured and placed on a payroll, be that of a recruitment agency or a specialist payroll company.

Government Internal Audit Agency undertook a thorough audit of the MCA off-payroll processes during the 2023 to 2024 financial year and which resulted in tightened controls.

Network Rail (NR): robust processes and procedures are in place to determine the status of off-payroll engagements against the IR35 legislation. Random reviews of determinations are carried out during the year to ensure accuracy. This provides assurance that all workers engaged in the business are being correctly paid and fulfilling all income tax and national insurance obligations. Three engagements were reassessed for consistency and compliance all were reflective of the working practices in place at the time of assessment.

During this year Network Rail has continued with modernisation and internal restructuring to prepare for CP7 which has resulted in a decline in numbers between Q4 22.23 and Q4 23.24. We have taken care when recruiting new or replacement workers during a time of increased budget pressure and people changes to ensure that any workers being engaged are able to support our business fully and are aligned with our future plans.

Vehicle Certification Agency (VCA):a process is in place to assess compliance with the IR35 legislation. Majority of engagements were not subject to IR35 legislation. Three engagements were reassessed for consistency and compliance, without resulting in a change to their initial status.

Active Travel England (ATE): a process is in place to assess compliance with the IR35 legislation. All engagements are reviewed internally by corporate services to ensure consistency and compliance. As ATE has grown in 2023 to 2024 it has seen an increase in the use of off-payroll workers to fill short-term specialist skill requirements including for digital and data. These workers have supported the development of new processes and helped define our long-term workforce requirements.

East West Rail Company Limited (EWRco): a process is in place to manage compliance and recruitment of off-payroll engagements. None of the engagements that were recognized as being ‘off-payroll’ workers from the outset were subject to IR35 legislation. An individual that was hired as a consultant was reviewed against IR35 guidance at the end of the year and was identified as being an off-payroll worker.

Table 15: off-payroll engagements of board members, and / or, senior officials with significant financial responsibility, between 1 April 2023 and 31 March 2024

	DfTc	BTPa	DVSA	DVLA	NH	HS2 Ltd	MCA	NLB	NR	TF	THLS	VCA	ATE	EWRco	Total
No. of off-payroll engagements of board members, and / or, senior officials with significant financial responsibility, during the financial year	2	0	0	0	0	3	0	0	0	0	0	0	0	1	6
Total no. of individuals that have been deemed ‘board members, and / or, senior officials with significant financial responsibility’, during the financial year. This figure includes both on payroll and off-payroll engagements	44	10	6	9	12	34	18	3	17	2	4	5	1	5	170

Details of the exceptional circumstances that led to the above off-payroll engagements with significant financial responsibility, and the duration of the engagement is as follows:

DfTc High Speed Rail: On 1 July 2018 a Construction Commissioner was appointed for 3 years, ending on 30 September 2021, the appointment was extended by 3 months in 2021 and ministers agreed to formal reappointment with effect from 1 January 2022. The reappointment was for a 2 year and 9 month continuation of the extended term, which is due to end on 30 September 2024.

On 18 April 2022 a Resident Commissioner was appointed for 3 years, due to end of 17 April 2025.

HS2: From 25 July 2022 to 30 April 2023 chief financial officer was engaged temporarily whilst the permanent role was defined, and ministerial approval was obtained from Department for Transport to fill the role permanently. Accounting officer approval was obtained for the temporary engagement.

From 01 March 2023 to 22 March 2024, a delivery director was temporarily engaged whilst the permanent role was defined, and ministerial approval was obtained from Department for Transport prior to fill the role permanently. Accounting officer approval was obtained for the temporary engagement.

From 25 March 2024 to 30 June 2024, a delivery director was temporarily engaged whilst the permanent role was defined, and ministerial approval was obtained from Department for Transport prior to fill the role permanently. Accounting officer approval was obtained for the temporary engagement.

EWR The HR director was hired as a temporary member of staff in November 2022, pending the role being advertised on a permanent basis. The temporary member of staff was a member of the EWR Executive Team throughout 2023 to 2024. This role was advertised for permanent recruitment in January 2024.

Consultancy and temporary staff costs (audited information)

During 2023 to 2024, DfTc, it’s executive agencies and delivery bodies employed a number of consultancy and temporary staff.

Consultancy is the provision of objective advice relating to strategy, structure, management or operations of an organisation in pursuit of its purposes and objectives. Such advice is provided outside the ‘business-as-usual’ environment when inhouse skills are not available and will be time-limited. Consultancy may include the identification of options with recommendations, or assistance with (but not the delivery of) the implementation of solutions.

Consultancy costs are incurred primarily on specialist transport-related activities across the group, notably in Network Rail and the central department.

Temporary staff costs are incurred when staff are brought in to supplement the existing workforce, this could be due to a surge in demand, to address a short-term resourcing need or in a temporary capacity for specialist skills.

Temporary staff costs are incurred primarily in major infrastructure programme across the group, notably in Network Rail and High Speed 2 and continue to be the most significant driver of these costs.

Table 16: consultancy and temporary staff costs (audited information)

	Consultancy	Temporary staff	Total
Network Rail	81,369,921	105,837,668	187,207,589
DfTc	78,234,425	3,462,302	81,696,727
High Speed 2	20,390	22,394,988	22,415,378
East West Rail	0	3,027,547	3,027,547
DVLA	204,463	2,818,525	3,022,988
DVSA	679,347	5,237,774	5,917,121
National Highways	2,500,000	4,900,000	7,400,000
BTP	965,322	1,265,880	2,231,202
MCA	1,132,562	1,391,708	2,524,270
VCA	6,083	359,345	365,428
Northern Lighthouse Board	0	343,322	343,322
Trinity House	0	522,840	522,840
Transport Focus	0	258,000	258,000
Commission for Irish Lights	4,228	63,615	67,843
Air Travel Trust Fund	0	0	0
LCR Finance Company	0	0	0
CTRL Finance Company	0	0	0
Air Safety Support International	120,265	0	120,265
Trainfleet	0	0	0
ATE	135,914	412,151	548,065
Department total	165,372,920	152,295,664	317,668,584

Exit packages (audited information)

Table 17: DfTc and agencies (audited information)

Exit package cost band	2023-24 compulsory redundancies	2022-23 compulsory redundancies	2023-24 other departures agreed	2022-23 other departures agreed	2023-24 total exits	2022-23 total exits
<£10,000	0	0	13	9	13	9
£10,000-£25,000	1	0	7	4	8	4
£25,000-£50,000	0	0	8	1	8	1
£50,000-£100,000	0	0	3	6	3	6
£100,000-£150,000	0	0	0	0	0	0
£150,000-200,000	0	0	0	0	0	0
>£200,000	0	0	0	0	0	0
Total number of exit packages	0	0	31	20	32	20
Total cost (£)	21,221	0	583,094	495,077	604,315	258,886

Table 18: whole departmental group (audited information)

Exit package cost band	2023-24 compulsory redundancies	2022-23 compulsory redundancies	2023-24 other departures agreed	2022-23 other departures agreed	2023-24 total exits	2022-23 total exits
<£10,000	34	53	49	45	83	98
£10,000-£25,000	70	106	91	105	161	211
£25,000-£50,000	134	211	470	191	604	402
£50,000-£100,000	21	22	654	240	675	262
£100,000-£150,000	1	1	60	83	61	84
£150,000-200,000	0	0	7	12	7	12
>£200,000	0	0	2	1	2	1
Total number of exit packages	260	393	1,333	677	1,593	1,070
Total cost (£)	7,475,107.16	10,862,523	72,694,236	38,164,517	80,169,343	49,029,518

Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972 (with the exception of Network Rail, which is not governed by Cabinet Office controls and runs separate exit schemes). Exit costs are accounted for in full in the year of departure. Where DfT has agreed early retirements, the additional costs are met by DfT and not by the Civil Service pension scheme. Ill-health retirement costs are met by the pension scheme and are not included in the tables.

In line with the Constitutional Reform and Governance Act 2010 and the model contract for special advisers, a special adviser’s appointment automatically ends when their appointing minister leaves office. Special advisers are not entitled to a notice period but receive contractual termination benefits to compensate for this. Termination benefits are based on length of service and capped at 6 months’ salary. If a special adviser returns to work for HM Government following the receipt of a severance payment, the payment is required to be repaid, less a deduction in lieu of wages for the period until their return. Termination costs for special advisers are reported in the Cabinet Office Annual Report and Accounts.

Trade unions

Industrial relations

2023 to 2024 began with 3 unions (FDA, PCS and Prospect) in dispute with the employer over pay, pensions contributions and job security. PCS called a national one-day strike across the Civil Service on 28 April 2023; targeted action with strike pay continued in DVLA until June 2023. Prospect members also took strike action in DVSA and MCA in May 2023 and FDA members took part in a strike ballot.

In June 2023 the Cabinet Office granted departments permission to make an additional £1,500 non-consolidated payment, and union strike action was suspended so that this payment could be negotiated and implemented. Prospect and FDA formally withdrew their dispute, PCS remained in dispute but continued to suspend strike action in order to negotiate the 2023 to 2024 pay award. Pay negotiations for the delegated grades were completed in August 2023, FDA and PCS rejecting the award and Prospect members voting to accept. DfT reached an understanding with the unions that it would impose the award, with the option to review if the pay remit was changed.

In September 2023, Unite the Union, representing drivers in the Government Car Service, accepted a pay award on similar terms to the core department.

Further disputes arose over working practices in both DVLA and DVSA, but no further industrial action was taken. PCS held a strike ballot in DVSA in December 2023 but following negotiations agreed to withdraw its dispute.

The departmental trade union side continued to engage with DfT on a number of policy issues, including the decision to change the minimum time in the workplace for hybrid workers from 40% of working time to 60%.

In January 2024 the unions met with the Permanent Secretary and were able to discuss a number of issues, including pay and cost of living pressures, and the application of the departmental hybrid working policy (including arrangements for those with caring responsibilities or disabilities). They commented on the good level of engagement in DfT and the ability for the unions to raise and address issues of concern.

Table 19: trade union representative – the total number of employees who were TU representatives during the relevant period

No. of employees who were relevant union officials during the relevant period	FTE employee number
141	139

Table 20: percentage of time spent on facility time – how many employees who were TU representatives’ officials employed during the relevant period spent a) 0%, b) 1% to 50%, c) 51% to 99% or d) 100% of their working hours on facility time

No. of employees who were relevant union officials during the relevant period	FTE employee number
0%	41
1-50%	100
51%-99%	0
100%	0

Table 21: percentage of pay bill spent on facility time – the figures requested in the first column of the table below will determine the percentage of the total pay bill spent on paying employees who were TU representatives for facility time during the relevant period

	Figures
Total cost of facility time	£160,843.88
Total pay bill	£838,648,837.66
Percentage of the total pay bill spent on facility time, calculated as: (total hours spent on paid TU activities by TU representatives during the relevant period / total paid facility time hours) x 100	0.02%

Table 22: paid TU activities – as a percentage of total paid facility time hours, how many hours were spent by employees who were TU representatives during the relevant period on paid TU activities

	Figures
Time spent on paid TU activities as a percentage of total paid facility time hours calculated as: (total hours spent on paid TU activities by TU representatives during the relevant period ÷ total paid facility time hours) x 100	0%

Sickness absence

Overall average working days lost (AWDL) per staff year in DfTc and its executive agencies was 8.6 days in the year ending 2023, there is no change from the same period last year, where this value was also 8.6. Of these average working days lost (AWDL) 5.3 days per staff year were lost to long term sickness, this is an increase on the same period last year, where this value was 4.8.

Mental ill health remains the largest long term absence type. This is reflected at DfTc and its executive agencies with 2.6 days per staff year lost, a slight increase from the same period last year, where this value was 2.4.

All absence is reviewed to ensure that support is offered and occupational health reports, action plans and interventions are progressed as appropriate. DfT is focused on improving wellbeing and supporting mental health. We have recently started a contract with a new employee assistance programme (EAP) provider, PAM assist: we have 42 trained mental health first aiders (MHFA) across DfTc; and in 2023 the workplace adjustments team underwent a strategic review with a new process implemented to better support our people.