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Policy
Penalty Fares
May 2002

1
Contents
Page
1
Introduction
2
2
Background
3
3
The SRA’s role 
5
4
How we will decide whether to approve a penalty fares scheme
5
• Is a penalty fares scheme appropriate?
• Basic conditions
• Penalty fares trains
• Penalty fares stations
• Compulsory ticket areas
• Ticket facilities
• Unstaffed stations
• Publicity
• Warning notices
• Authorised collectors
• Selecting and training authorised collectors
• Instructions given to authorised collectors
• Checking that ticket facilities are available and warning signs are displayed
• Selling tickets on penalty fares trains 
• Arrangements between operators
• Appeals
• The Independent Penalty Fares Appeals Service (IPFAS)
5
Guidelines for operators who want us to approve a scheme
15
6
Changing, suspending or withdrawing a scheme
20
7
When the SRA may prevent an operator charging penalty fares
21
Appendices
Appendix A The Penalty Fares Rules 2002
23
Appendix B The Railways (Penalty Fares) Regulations 1994
34
Appendix C Wording of section 130 of the Railways Act 1993 
40
(as amended by the Transport Act 2000)
Appendix D Penalty fares scheme template
43

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1
Introduction
The need to protect revenue
1.1
Each year, the UK rail network carries 750 million passengers and earns over £3 billion from
the sale of tickets. Even if only a small percentage of these passengers travel without paying,
the rail network will lose a considerable amount of money. Reducing the number of people
who travel without a ticket is not only in the interests of the operator, but also in the interests
of most fare-paying passengers. Few of us want to pay more for our tickets because some
people avoid paying, and the loss of income due to people travelling without tickets reduces
the money available to invest in a better rail service.
What are ‘penalty fares’?
1.2
Train operators can reduce the number of people who travel without a ticket in a number of
ways. On long-distance trains, it is often possible for the on-board staff to check every
passenger’s ticket. On rural routes, trains stop more often, but as they usually have fewer
coaches and carry a smaller number of passengers, on-board ticket checks can also be
effective. However, on urban and suburban routes, where station stops are frequent and the
trains are often busy, it is not always possible to check every passenger’s ticket between every
station. In the past, tickets have been inspected by staff at ticket barriers, but it is very
expensive to provide staff at every ticket barrier and also inconvenient for passengers. An
alternative is to operate a ‘penalty fares’ scheme. 
1.3
A penalty fares scheme works on the same principle as a ‘pay and display’ car park, where
motorists may have to pay a penalty if they do not buy a ticket when they park. Where penalty
fares apply, rail passengers must buy their tickets before they start their journey wherever
there are facilities for them to do so. If a passenger gets on a train without a ticket at a station
where ticket facilities are available, they will have to pay a penalty fare if asked to do so by a
ticket inspector who has been appointed as an ‘authorised collector’. The penalty is £10 or
twice the full single fare from the station where the passenger got on the train to the next
station at which the train stops, whichever is the greater. If the passenger wants to travel
beyond the next station, they must also pay the relevant fare from that station to their final
destination.
What is the role of the SRA?
1.4
To protect fare-paying passengers, all penalty fares schemes must follow a set of regulations
made by the Secretary of State and a set of rules made by the Strategic Rail Authority (SRA).
Under the rules, any operator who wants to charge penalty fares on all or part of their network
must send us details of their scheme and get our approval. We will make sure that they follow
the rules, regulations and the contents of their scheme. 
The purpose of this document
1.5
This document explains our policy on penalty fares, and sets out how we will decide whether
or not to approve a particular penalty fares scheme. It is written to help train operators’ staff
design and operate a penalty fares scheme, and for members of the public and other people
who want to know how we protect the interests of rail users where penalty fares are charged.
You should read this policy statement with the SRA’s Penalty Fares Rules 2002, which can
be found in appendix A.


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2
Background
Origins 
2.1
A penalty fares system was first developed in the late 1980s by the Network SouthEast sector
of British Rail (BR), as a way to protect revenue in its particular circumstances. As well as
reducing the expense of inspecting tickets at ticket barriers, BR also wanted to reduce the
number of cases that were referred to the courts. Before penalty fares were introduced, the
only way to deter people from travelling without a ticket was to prosecute them under the
Regulation of Railways Act 1889. This was time-consuming, costly and often ineffective. For
a prosecution to be successful, it had to be proved that the passenger intended to avoid paying.
This was often difficult as most passengers without tickets were willing to pay if they were
challenged, but did not pay if they were not challenged. 
2.2
The British Rail (Penalty Fares) Act 1989 allowed BR to name particular train services or areas
at stations in which people without a valid ticket would have to pay a penalty. Nine Network
SouthEast divisions introduced penalty fares schemes under this act between 1990 and 1994,
and each scheme was approved by the Secretary of State for Transport as required by the
legislation. The system included a right of appeal to an organisation within BR which was
independent of the management of individual penalty fares schemes. For people who regularly
travelled without a ticket, BR kept the right to prosecute them in the courts as before. 
The Railways Act 1993 and Transport Act 2000
2.3
When the railways were restructured for privatisation, section 130 of the Railways Act 1993
(‘the Act’) became the new legal basis for charging penalty fares. The Railways Act allows the
Secretary of State to make regulations in connection with penalty fares, and the regulations
allowed the Regulator to make rules. Section 130 of the Railways Act is still the legal basis for
charging penalty fares, but in February 2001 the Transport Act 2000 transferred responsibility
for making rules to the Strategic Rail Authority. There is a copy of section 130 in appendix C. 
The Railways (Penalty Fares) Regulations 1994
2.4
The Secretary of State has made regulations, as allowed by the Act, known as the Railways
(Penalty Fares) Regulations 1994. These came into force on 1 April 1994 and set out (amongst
other things):
• the amount of the penalty fare (currently £10 or twice the full single fare from the station
where the passenger started their journey to the next station at which the train stops,
whichever is the greater); 
• that operators may recover unpaid penalty fares as a civil debt; 
• that passengers may be charged a penalty fare or prosecuted for a given offence, but not
both; and
• that it is an offence for a passenger to refuse to give his or her name and address if an
authorised collector asks them to do so. The regulations set an appropriate level of fine for
this offence. 
The regulations allow us to make rules about charging penalty fares on matters other than
these. There is a copy of the regulations in appendix B.

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The Penalty Fares Rules 2002
2.5
We have made rules about charging penalty fares, as we are authorised to do by the Act and the
regulations. The current rules are the Penalty Fares Rules 2002 (the ‘Rules’), which came into
force on 1 May 2002. They replace the Penalty Fares Rules 1997 which were introduced by the
Rail Regulator on 28 April 1997. 
2.6
Under the rules, any operator who wants to charge penalty fares must send us details of their
scheme and get our approval. The rules set out the circumstances in which passengers may or
may not be charged a penalty fare, and they make a number of requirements about how
penalty fares are charged. The rules allow us to stop operators charging penalty fares, either
completely or in part, if the operator fails to follow any of the rules or regulations, or if we
believe that penalty fares are being charged in a way which does not provide sufficient
protection for passengers. There is a copy of the Penalty Fares Rules 2002 in appendix A.
Penalty fares schemes
2.7
At the time of writing, the following train companies have a penalty fares scheme which we
have approved on all or part of their network. 
Connex South Eastern 
(inner suburban area only)
SouthCentral 
(inner suburban area only)
South West Trains 
(inner suburban area only)
Thameslink 
(Bedford to Redhill only)
First Great Eastern 
(most routes other than paytrain lines)
c2c Ltd 
(all routes)
Arriva Trains Merseyside
(most stations, but this scheme is currently suspended)
Thames Trains 
(West Drayton to Paddington and branches only)
Central Trains 
(Birmingham area only)
Nexus (Tyne & Wear Metro)
(all routes)
Chiltern Railways 
(all routes)
West Anglia Great Northern 
(all routes except passengers to and from Stansted Airport)
Arriva Trains Northern
(Leeds area only)
Penalty fares on the London Underground
2.8
London Underground Limited (LUL) also has a penalty fares scheme. However, the basis for
this scheme is the London Regional Transport (Penalty Fares) Act 1992 and the Greater
London Authority Act 1999. We have no authority over the Underground penalty fares
scheme, which is not covered by this policy or by the Penalty Fares Rules.

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3
The SRA’s role
3.1
We believe that train operators should be responsible for protecting their own revenue, as they
have a direct incentive to make sure that their procedures are effective. Each train operator
must devise its own revenue protection strategy, and decide for themselves whether this
should include a penalty fares scheme. We do not intend to either promote or discourage the
operation of penalty fares schemes.
3.2
A penalty fares scheme reverses the normal ‘burden of proof ’ which would apply if a person
was prosecuted for not paying their fare. In that case, the train operator would have to prove
beyond reasonable doubt that the defendant intended to avoid paying their fare. Under a
penalty fares scheme, anyone found without a valid ticket must normally pay a penalty, if they
have previously been given the opportunity to buy a ticket and have passed the penalty fares
warning signs. In this case, the passenger would have to show that they had a valid reason for
not having a ticket. For this reason, we see our main role as making sure that the interests of
honest passengers are protected, both in the way existing schemes are run and in the contents
of any new schemes which we approve. 
3.3
In protecting passengers’ interests, it is very important that passengers know about penalty
fares schemes and how they work. We believe that this will be easier to achieve if different
operators’ schemes are made more consistent. The amount of the penalty, the circumstances
in which passengers are and are not liable to a penalty fare, and the way in which appeals are
decided, have been consistent across all schemes for some time. However, other aspects of
penalty fares schemes are different for different operators. We recognise that penalty fares
schemes may need to be adapted to suit local circumstances, but we will encourage greater
consistency between schemes.
3.4
We acknowledge that ticketless travel has a negative effect on fare levels and investment, and
so has a negative effect on most passengers. Although our main aim is to protect honest
passengers, we recognise that train operators need to protect their revenue if they are to
provide an effective rail service.
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How we will decide whether to approve a penalty fares
scheme

Is a penalty fares scheme appropriate?
4.1
When considering a penalty fares scheme, we will first consider whether penalty fares are
appropriate, given the type of train service provided and the other ways in which that operator
could protect its revenue. A penalty fares scheme is most suited to urban or suburban train
services where most stations have ticket facilities, and where busy trains and short intervals
between stations make it impossible to check every passenger’s ticket between every stop. We
may question the need for a penalty fares scheme to cover long-distance services, where a
conductor is able to check every passenger, or rural services operated as ‘paytrains’, where
most stations are unstaffed and it is normal practice to buy tickets on board the train. Also,
automatic ticket gates are being used at more stations to control entry to the platforms. A
penalty fares scheme might not be necessary if all, or almost all, of the stations concerned had
these gates.

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Basic conditions
4.2
As long as we think that a scheme is appropriate in principle, we will assess penalty fares
schemes according to the following basic conditions.
a
Passengers must be fully informed before they get on a penalty fares train or enter a
compulsory ticket area that they need to buy a ticket or permit to travel before starting
their journey, and that they may have to pay a penalty if they do not.
Passengers must be given a sufficient opportunity to buy a ticket or permit to travel
before they get on a penalty fares train or enter a compulsory ticket area.
c
Passengers must not be made to pay a penalty fare if they were not given the
opportunity to buy a ticket or permit to travel 
before they got on a penalty fares train or
entered a compulsory ticket area.
The following paragraphs describe the features which we think a penalty fares scheme must
have in order to meet these basic conditions. We have come to this conclusion through
consultation with passenger groups and train companies, and through experience of how
penalty fares schemes operate, including industry best practice. 
Penalty fares trains
4.3
‘Penalty fares trains’ are the train services for which penalty fares may be charged. A train
operator will normally name as penalty fares trains all the trains which it runs within a
particular geographical area or on a particular route or routes. A train service does not have to
be a penalty fares train for the whole of its journey. It will be a penalty fares train while it is
within the specified area or travelling over the specified section of route, and will not be a
penalty fares train on the part of its journey outside this area or section of route. In deciding
which trains should be penalty fares trains, an operator should take account of the geography
of the train service, the ticket facilities available at the stations which will be served and
whether the area covered can be easily explained to passengers. 
Penalty fares stations
4.4
Passengers on a penalty fares train may only be charged a penalty fare if they got on that train
at a station which has been named as a ‘penalty fares station’ by the relevant penalty fares
scheme. At these stations, penalty fares warning notices must be displayed and sufficient
ticket facilities provided.
4.5
Operators must normally name each of the stations served by penalty fares trains as a penalty
fares station. For example, if all trains within an area bounded by stations x, y and z have been
named as penalty fares trains, all stations within that area, including x, y and z, should
normally be named as penalty fares stations. However, an operator may not want to include
certain stations for a number of reasons. For example, if the station:
• has no ticket facilities as it is unstaffed, and not enough passengers use the station to justify
a ticket or ‘permit to travel’ machine (PERTIS);
• has no ticket facilities as it is unstaffed, and the amount of vandalism means that it is not
practical to maintain an operational ticket or ‘permit to travel’ machine; or

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• serves a port or airport and is used by a large number of foreign visitors and people who do
not often travel by train, making it undesirable to charge penalty fares to passengers from
this station.
Operators must make sure that if these stations are not made penalty fares stations, this does
not cause confusion or make the scheme difficult to explain to passengers.
Compulsory ticket areas
4.6
The Penalty Fares Rules allow an operator to create compulsory ticket areas (CTAs) at
stations. A CTA is an area at a station, usually the platforms and any footbridge, subway or
circulating area linking the platforms, in which everyone must have a valid ticket or platform
ticket, even if they have not travelled yet or are not going to travel. 
4.7
CTAs increase the risk to honest passengers because people who have not travelled, or who do
not intend to travel, may also be charged a penalty fare if they do not have a platform ticket or
other authority allowing them to enter the CTA. This could include people who are meeting
passengers or seeing passengers off, or people who are simply using the station facilities.
Operators do not need to create a CTA to charge penalty fares to passengers who have got off
a train. Penalty fares may be charged to someone leaving a train, and the rules make it clear
that ‘a person leaving a train’ includes someone who is present at or leaving a station having
left a train arriving at that station. CTAs are only necessary at larger and busier stations, where
revenue protection can only be carried out effectively if it is no longer necessary for
authorised collectors to prove who has and has not got off a train. 
4.8
A CTA should normally only be created if all the train operators using that station (or the
particular part of the station covered by the CTA) have a penalty fares scheme. CTAs should
not normally be created at stations (or parts of stations) that are served by trains which are not
part of any operator’s penalty fares scheme.
4.9
Warning notices must be placed at each entrance to the CTA, in line with rule 4. CTAs can
cause confusion if there are no barriers at the entrance to the platforms because people think
that they are free to walk onto the platforms without a ticket. So it is very important that a
CTA is clearly marked so that people know they must have a ticket or platform ticket before
they enter that area.
4.10 At stations with a CTA, operators must make arrangements for people who are not travelling
to be allowed into the part of the station covered by the CTA, if they have a good reason. This
includes people who are meeting passengers, seeing passengers off or helping them with
luggage, people helping passengers with disabilities, and people such as railway enthusiasts.
The arrangements might include making platform tickets available at the ticket office or from
a machine. People who are helping passengers with disabilities should not be charged to enter
a CTA.
Ticket facilities
4.11 One of the SRA’s three basic conditions for approving a penalty fares scheme is that
passengers must be given a sufficient opportunity to buy a ticket or permit to travel before
they get on a penalty fares train or enter a compulsory ticket area. Every penalty fares station
must have sufficient facilities for selling tickets. 

8
4.12 Where penalty fares apply, passengers must allow enough time to buy a ticket, including time
to queue, if necessary. Under normal circumstances, passengers may still be charged a penalty
fare if they join a train without a ticket, even if there was a queue at the ticket office or ticket
machine. However, we expect operators to provide enough ticket windows, ticket machines
and staff at staffed stations to meet the queuing standards set out in the Ticketing and
Settlement Agreement and their Passenger’s Charter under normal circumstances. This
standard is normally five minutes at peak times and three minutes at other times. If queues at a
particular station regularly fail to meet these standards at certain times or days of the week,
the operator must either take action to sort out the problem before a penalty fares scheme is
introduced or make sure that passengers are not charged penalty fares when these queuing
standards are not met. This might include providing extra staff or ticket machines. A penalty
fares scheme must include arrangements for telling authorised collectors when long queues
build up at ticket offices (see paragraph 4.33).
4.13 At staffed stations, operators must provide a second way of selling tickets in addition to the
ticket office. This might be a ‘permit to travel’ machine or one or more self-service ticket
machines. This is necessary because the ticket office may not be open at all times when trains
are running, and there may be times when the ticket office is closed because of staff sickness
or for other reasons. There may also be a need to provide back-up at busy times when queues
might build up. Arrangements must be in place for the machines to be checked regularly by
station staff and any faults put right quickly. Arrangements must be in place for any ‘permit to
travel’ machine to be switched on when the ticket office is closed, temporarily unstaffed, or
when long queues build up.
4.14 In exceptional circumstances, an operator may not need to provide a second way of selling
tickets, if the ticket office is open at all times when trains are running and suitable
arrangements have been made to deal with problems such as staff sickness, for example,
through a system of stand-by staff who can be sent to any ticket office which does not open
when it should.
Unstaffed stations
4.15 We do not recommend that large numbers of unstaffed stations are included in a penalty fares
scheme. However, unstaffed stations can be penalty fares stations as long as they have at least
one self-service ticket machine or one ‘permit to travel’ machine. Suitable processes must be
in place to make sure that the machines are checked regularly and any faults put right quickly.
A system must be in place which allows authorised collectors to confirm that these machines
are working properly, and this must be effective. The instructions given to authorised
collectors must tell them that if they are not sure whether the machines are working properly,
they must give passengers the benefit of the doubt.
Publicity
4.16 A penalty fares scheme will only be effective in reducing the number of people who travel
without a ticket if passengers know about the scheme. The best way to prevent honest
passengers having to pay a penalty is also to make sure that they know about the scheme.
Operators must think carefully about how they will publicise their scheme, both before and
after it is introduced, and must set aside enough money for this purpose.

9
4.17 Under rule 3, notices must be displayed at every penalty fares station, for at least three weeks
before a new penalty fares scheme is introduced, to tell passengers about the scheme. Less
than three weeks may not be enough warning for less regular travellers, but much longer
periods should be avoided because the effect may wear off before the scheme is introduced.
The format and content of the notices must be in line with rule 4.3. 
4.18 As well as displaying the notices required by the rules, we expect operators to publicise a new
penalty fares scheme in other ways. This should include posters, announcements on trains and
stations, and perhaps advertisements in newspapers and on local radio or television. 
4.19 We expect operators to produce leaflets to explain their scheme to passengers. The leaflets
must explain how the scheme works and must include a route map showing the routes on
which penalty fares trains run, and the stations which are penalty fares stations or which have
a CTA. The leaflets should normally be made available three weeks before the scheme is
introduced at every staffed penalty fares station and by post from the operator’s customer
services department. Operators must produce enough leaflets (and must print more leaflets
when necessary) to make sure that copies are always available from each staffed penalty fares
station and from customer services for as long as the scheme continues. The leaflets may be
used as the summary of the scheme which, under rule 8.6, the operator may be asked to send
to a passenger who is charged a penalty fare.
4.20 Leaflets in large print or on audio tape must be available from the operator’s customer services
department for people who have poor eyesight. In areas where a large number of people do
not speak English as their first language, or when the penalty fares scheme will cover stations
serving ports and airports, operators may need to produce leaflets and notices in other
languages.
Warning notices
4.21 Penalty fares warning notices must be displayed at every entrance to a CTA and at every
penalty fares station so that at least one notice can be easily seen by anyone joining a penalty
fares train (rule 4 of the Penalty Fares Rules). The best way to do this is to place a warning
notice at every entrance to the station platforms. The notices must be prominent, easy to read,
and easy to distinguish from other notices and the general surroundings. The notices must
give the name of the operator, the circumstances in which a penalty fare may be charged and
the amount of a penalty fare. To make sure that warning notices are consistent between
different operators, they must be in line with a code of practice approved by the SRA. The
Association of Train Operating Companies (ATOC) has produced a code of practice which
we have approved for this purpose 
4.22 The warning notices must be in place when the scheme is introduced, and must stay in place
for as long as the scheme continues. If the notices at a particular station are covered up,
damaged or removed for any reason, passengers who join a train at that station cannot be
charged a penalty fare (rule 7). For this reason, the notices must be checked regularly and
operators should include a check in their routine station audits.
4.23 As well as the fixed notices required by the rules, penalty fares warnings should be shown in
the departure information for each penalty fares train shown on customer information
screens and indicator boards at stations. For example, ‘Please buy your ticket before
boarding as penalty fares apply to this train’
. This is especially important at larger stations,
where penalty fares apply to certain trains but not others.

10
4.24 Another best practice is to display warning notices on trains, although this may not be
possible if rolling stock is also used on routes where penalty fares do not apply. 
Authorised collectors
4.25 Penalty fares may only be charged by staff who have been appointed as ‘authorised collectors’
(rule 5 of the Penalty Fare Rules). Under rule 5, authorised collectors must carry formal
identification, which should include a photograph and identify the authorised collector by
either name or number. To make sure that the form of identification is consistent between
different operators, it must follow a code of practice approved by the SRA. ATOC has
produced a code of practice which we have approved for this purpose. 
4.26 Authorised collectors and other staff who sell tickets on trains often receive commission on
the value of the tickets they sell. Some operators also pay staff a small amount of commission
(typically 5%) on the value of the penalty fares charged. We have no objection to this, as long
as the percentage is small and the relevant instructions about the use of discretion and the
circumstances in which penalty fares may or may not be charged are strictly followed.
Selecting and training authorised collectors
4.27 Schemes sent to us for approval must explain the arrangements for selecting and training
authorised collectors. Schemes must also explain the arrangements for giving authorised
collectors ‘refresher’ training and regular briefing. Authorised collectors have the power to
charge a penalty fare to passengers who do not have a valid ticket, but they also have the
discretion not to charge a penalty in certain circumstances. Selection procedures must make
sure that the people appointed as authorised collectors can handle this discretion, and the
training must make sure that they know how to use it. 
Authorised collectors must be properly trained in the Penalty Fares Rules and the relevant
penalty fares scheme or schemes, ticket types and restrictions, excess fare instructions, the
National Routeing Guide and the National Rail Conditions of Carriage. We also expect
training to be given in customer care and how to avoid conflicts. 
Each trainee must be assessed after training, and they may only be appointed as an authorised
collector (and given the formal identification referred to in rule 5) when their knowledge and
ability is judged to be satisfactory. As well as initial training, authorised collectors will need
refresher training at sufficient intervals to keep their knowledge up to date. A system of
routine briefing is also needed to make sure that they are aware of day-to-day issues and
events as they arise. We will need to be sure that these arrangements are satisfactory. 
Instructions given to authorised collectors
4.28 Operators sending us a scheme for approval must enclose a copy of the written instructions
and information which will be given to each authorised collector, containing guidance and
rules about their appearance, behaviour and use of discretion (rule 3 of the Penalty Fares
Rules). The instructions must give authorised collectors the information they need about
penalty fares trains and stations, ticket facilities and ticket office opening hours.
4.29 When a penalty fare cannot be charged. The instructions must make clear to authorised
collectors when they can charge a penalty fare and when they can’t. In particular, the

11
instructions must remind authorised collectors of situations where passengers are not liable
to a penalty fare under the Penalty Fares Rules, for example in circumstances where the
National Rail Conditions of Carriage allow the passenger to pay an excess fare. The
instructions must cover the following instances.
• Interchange. A passenger who changes onto a penalty fares train at a penalty fares station
may normally be charged a penalty fare if ticket facilities were available at the interchange
station and warning notices were displayed where they could be seen by anyone changing
onto the penalty fares train. However, under condition 7 of the National Rail Conditions of
Carriage, the full normal range of tickets must be made available to any passenger who
started their journey at a station where no ticket facilities were available. In these
circumstances, a passenger should not be expected to buy a ticket at the interchange station
if they do not have enough time to do so without missing their connection. If it is not
possible to check whether or not ticket facilities were available at the station where the
passenger started their journey (which may be a station run by a different train company), a
penalty fare should not be charged.
• Ticket restrictions. Many types of ticket cannot be used at certain times of day, on certain
days of the week or on certain trains. These ticket restrictions can be complicated, and even
familiar tickets such as cheap day returns can have different restrictions on different routes.
If a passenger travels on a train on which their ticket is not valid, it is more likely that the
restrictions were not properly explained to them than that they are deliberately trying to
avoid paying the right fare. We believe that it is up to the train operators to make sure that
each passenger understands the restrictions which apply to the ticket which they are sold.
Under rule 7, a passenger may not be charged a penalty fare if he or she has a ticket for the
journey which they are making that is not valid on that train only because of a ticket
restriction. In these cases, the passenger only needs to pay the excess fare, in line with the
National Rail Conditions of Carriage. 
• Ticket routing. A passenger who has a ticket for the journey they are making, but who is
using a route on which their ticket is not valid, may not be charged a penalty fare. The
National Rail Conditions of Carriage allow the passenger to pay an excess fare to travel on a
different route from that shown on their ticket. 
• Season-ticket left at home. We expect allowances to be made for season-ticket holders
who, for one reason or another, fail to carry their season-ticket or photocard. The system
used by most operators is that a penalty fare notice will be issued, but no payment will be
taken. On two occasions for each person in any 12-month period, the penalty fare will be
cancelled when the passenger appeals. Some operators have procedures for cancelling
penalty fares notices without having to go through the appeals process and we want to
encourage this. The instructions given to authorised collectors must explain what the
authorised collector and the season-ticket holder must do in this situation. 
• Passengers travelling in first class accommodation with a standard class ticket. Under the
Penalty Fares Rules 2002, passengers who have standard class tickets but who travel in first
class accommodation may be charged a penalty fare. This applies equally to season ticket
holders and holders of tickets other than season-tickets. However, a penalty fare may not be
charged if permission to occupy first class accommodation has been given by a member of
staff or by a notice. 

12
4.30 Using discretion. Authorised collectors must be given the discretion not to charge a penalty
fare in a particular instance, even where the passenger is liable to pay a penalty fare under the
Penalty Fares Rules. Operators must think carefully about the guidelines they give to
authorised collectors about how they should use this discretion. We expect authorised
collectors to use discretion towards:
• passengers who have mobility problems and passengers who are frail, elderly or heavily
pregnant, who may not be able to reach the ticket office easily at the station where they
joined the train, particularly if this would involve a footbridge, steps or a long walk (frail,
elderly, or heavily pregnant passengers may not be able to stand in a ticket queue for very
long);
• passengers who are not aware of the scheme because they are blind or partially sighted, are a
foreign visitor who lives abroad, do not speak English very well, or have learning difficulties; 
• passengers who are travelling from stations where the only ticket facilities available are
ticket machines or a ‘permit to travel’ machine, and who have enough money (or a credit or
debit card) to buy a ticket but not in the form needed to use the ticket or ‘permit to travel’
machine;
• passengers who are travelling from stations where the only ticket facilities available are
ticket machines and who claim that the machines were accepting coins only, or the exact fare
only, and the passenger did not have the necessary coins (unless the authorised collector can
confirm that the machines were in fact working normally); 
• passengers who are travelling from a station where the authorised collector has been told
that long ticket office queues have built up, or where fewer ticket windows are open than
normal;
• passengers with standard class tickets who are elderly or pregnant and who are travelling in
first class accommodation because no standard class seats are available; and
• all passengers when the train service is severely disrupted.
4.31 Minimum payment. The instructions must remind authorised collectors that passengers do
not have to pay all of the penalty fare immediately. Authorised collectors may require the
passenger to make a minimum payment that is equal to the normal fare payable for the
journey which the passenger is making. However, passengers have 21 days in which to pay the
rest of the penalty fare. The instructions must give authorised collectors the discretion not to
require this minimum payment, but to allow passengers 21 days in which to pay all of the
penalty fare. It may be appropriate to use this discretion towards season-ticket holders who
have failed to carry their ticket (see paragraph 4.29), as well as towards people who are at risk.
4.32 People at risk. Authorised collectors must take special care with children and other vulnerable
passengers, such as people who are elderly, frail or heavily pregnant. This is particularly
important at night or on last trains. In particular, children or other people at risk must not be
left without enough money to return home, for example, if they need a bus fare or money for
a phone call when they reach their destination. In the case of children, if an authorised
collector decides to charge a penalty fare, no payment should normally be taken on the spot.
Instead, the authorised collector should tell the child to hand the penalty fare notice to his or

13
her parents or guardian when they return home. In such cases, authorised collectors must also
be given the discretion to make the penalty fare notice valid for the child to travel to their final
destination.
Checking that ticket facilities are available and warning signs are displayed 
4.33 Under rule 7, a person cannot be charged a penalty fare if there were no ticket facilities
available at the station where they joined the train, or if the warning notices required by rule 4
were not properly displayed. If a passenger says that they could not buy a ticket or that there
were no warning signs, an authorised collector must be able to check that the warning signs
are in place and not covered up or damaged, and whether ticket machines are working
properly or the ticket office is open. Authorised collectors also need to know when long
queues build up at a ticket office so that they can use their discretion towards passengers
travelling from that station. This is usually done by giving each authorised collector a mobile
phone and a pager to keep them in contact with a central control centre. Arrangements must
be made for station staff to contact the control centre if a ticket office closes early or if long
queues build up, and to advise the control centre of any ticket or ‘permit to travel’ machines
that are not working. Operators must explain how ‘permit to travel’ and ticket machines at
unstaffed stations will be monitored.
Selling tickets on penalty fares trains
4.34 The basic principle of any penalty fares scheme is that passengers must buy their tickets
before they get on their train. If passengers find that they can buy their ticket on the train
from the conductor or guard, it undermines this message. For this reason, we will not allow
tickets to be sold on penalty fares trains unless either: 
a
the on-train staff are trained as, and act as, authorised collectors, so they can charge a
penalty fare to any passenger who is liable for one; or
b the on-train staff issue a printed penalty fares warning, as well as a ticket, to any passenger
who is liable to a penalty fare, and draw the passenger’s attention to the warning. 
In the case of (b), on-train staff must be given suitable training (and, when necessary,
refresher training) in how the penalty fares scheme works, and how to issue these penalty
fares warnings. A system must also be in place to make sure that on-train staff use the
warnings properly. Where the warnings are issued using a portable ticket machine, such as
‘SPORTIS’, machine print-outs might be used to check that staff are issuing them. Any
system must make sure that each individual conductor or guard is regularly monitored.
Arrangements between operators
4.35 The operator of a penalty fares scheme may give the authorised collectors of another train
company permission to collect penalty fares on its behalf. In line with rule 5, the identification
which each of these authorised collectors carries must show that they are authorised to collect
penalty fares on behalf of that operator. These authorised collectors must be given suitable
training about the penalty fares scheme, including the relevant instructions and discretion
guidelines which may be slightly different from those of the penalty fares scheme run by the
operator which employs them. When a passenger is charged a penalty fare, it must always be
made clear which operator’s penalty fares scheme applies. 

14
4.36 Passengers travelling on the trains of another train operator cannot be charged a penalty fare if
that operator does not have a penalty fares scheme, or if the authorised collector has not been
authorised to collect penalty fares on behalf of that operator. The training and written
instructions given to authorised collectors must make this clear.
Appeals
4.37 A passenger may want to appeal against a penalty fare if they think that it has been charged
incorrectly or unfairly, so an effective and independent appeals process is an essential part of
any penalty fares scheme. However, we do not have the resources to deal with appeals
ourselves, and we do not think it is appropriate for us to do so. Instead, under rule 9, every
penalty fares scheme must include a process for handling and deciding appeals in line with a
code of practice which we have approved. 
4.38 We consider that an appeals procedure will need to have the following features if we are to
approve it as part of a penalty fares scheme.
• Independence. The organisation deciding the appeals must be, and must be seen to be,
independent of the day-to-day commercial management of individual operators. The cost of
this organisation should be met by the operators, as it is part of the cost of using penalty
fares as a way of protecting revenue. However, the funding of the appeals organisation
should be independent of whether it accepts or turns down the appeals it processes.
• Clear criteria for accepting or turning down an appeal. We believe that appeals should be
accepted in the following situations.
– If an operator has failed to meet the requirements of its scheme, the rules or the
regulations. For example, if warning notices were not properly displayed in line with
rule 4, or the passenger could not buy a ticket because there were no ticket facilities
available at the station where they joined the train.
– Where appropriate discretion has not been used. For example, if the authorised
collector has not used his or her discretion in line with the guidelines which he or she has
been given.
In both cases, the staff who handle appeals must be given clear and specific criteria to decide
whether a particular appeal should be accepted or turned down.
• A consistent approach. It is important for both passengers and operators to know that any
appeal will be dealt with consistently. We believe that the best way to achieve this is to have a
single appeals organisation. Appeals are unlikely to be dealt with consistently if each
operator handles its own appeals. 
• Appropriately trained staff. Staff who deal with appeals must have appropriate experience
and training.
• Access to the information needed to decide each appeal. The appeals staff will need to
assess whether the operator has failed to meet the requirements of its scheme, the rules and
the regulations. To do this, operators must keep records of, for example, the actual opening
hours of ticket offices, when ticket machines have broken down, and so on, and to give this
information to the appeals organisation when it is needed. Appeals staff will also need to

15
assess whether an authorised collector has used his or her discretion in an appropriate way.
To do this, arrangements will need to be made for authorised collectors and other staff to
give their version of events to the appeals organisation when necessary.
Appeals must also take account of people’s rights under the Human Rights Act 1998 and the
European Convention on Human Rights. The appeal procedures must be compatible with
these rights.
The Independent Penalty Fares Appeals Service (IPFAS)
4.39 Every penalty fares scheme which has so far been approved has arranged for appeals to be dealt
with by the Independent Penalty Fares Appeals Service (IPFAS), in line with the IPFAS code
of practice. We have approved this code of practice for the purposes of rule 9. 
4.40 IPFAS is managed by Connex SouthEastern Ltd, but as a separate unit whose management
does not report to the commercial director. When the Regulator asked for opinions from the
public and the rail industry a few years ago, most people agreed that appeals must be dealt with
independently and consistently, but there was little agreement on what the practical
arrangements should be. Some people questioned the need to change what was already in
place. Without a practical alternative offering any clear advantages, we believe that the current
arrangements are satisfactory, as long as IPFAS:
• remains a separate unit, with its own accounts and a line management that does not report to
the commercial director;
• continues to decide appeals in line with a set of specific criteria which we have approved;
• continues to be funded independently of the outcome of the appeals it processes, for
example, by receiving a set fee for each appeal, no matter whether that appeal is accepted or
turned down; and
• continues to receive enough funding to carry out its functions, while costs are fairly
distributed between operators using the service. To make sure that this is the case, we have
agreed the charging arrangements between IPFAS and the operators who use the service.
4.41 We recognise that there may come a time when operators may want to change these
arrangements. However, existing penalty fares schemes will need to be changed to reflect the
new arrangements. We will need to be sure that the new arrangements are in place and are
satisfactory before we approve any changes. 
5
Guidelines for operators who want us to approve a scheme
Informal discussion 
5.1
We strongly recommend that any operator who is considering introducing a penalty fares
scheme should first discuss its plans with us informally. Operators should also discuss their
plans informally with the relevant Rail Passengers Committee (RPC), any relevant Passenger
Transport Executive (PTE), and any other train or station operator (including, if appropriate,
London Underground) who will be affected. It is also good practice to advise the local British
Transport Police. This will allow everyone to understand how the proposed scheme will work,

16
and any possible problems can be sorted out at this stage. We are happy to provide guidance on
draft penalty fares schemes, and we strongly recommend that a draft of the scheme is sent to
us informally before the formal notice is sent. 
Formal notice
5.2
When informal discussions have been completed, and the operator is confident that there are
no serious objections, a formal notice should be sent to us in line with rule 3 of the Penalty
Fares Rules. Under rule 3, a formal notice must be sent to us at least three months before the
date when the penalty fares scheme will be introduced. This is normally enough for us to
approve the scheme and for the operator to give passengers the necessary three weeks’ notice,
as long as the scheme has been thoroughly discussed in draft form beforehand. If any major
issues have still not been sorted out when the formal notice is sent, more time might be
needed. 
5.3
The notice must give the reasons for wanting to introduce a penalty fares scheme, which
should include a brief description of the expected benefits and the reasons for selecting
penalty fares over other possible ways of protecting revenue. The notice must give the date on
which the operator wants to start charging penalty fares.
5.4
The operator must send copies of the notice to the relevant RPC and any PTE whose stations
or trains are covered by the scheme. 
Description of the scheme
5.5
A description of the penalty fares scheme must be sent with each copy of the notice. We
recommend that operators send this in a loose-leaf ring binder. This will make it easy to
update the document if any changes need to be made before we approve it, or if the operator
wants to make any changes at a later date under rule 11. Each page must carry a page number
and the date of issue so that changes can be tracked. 
5.6
The issues which the description of the scheme must cover are listed in rule 3 of the Penalty
Fares Rules. The guidelines which follow explain in more detail what we expect to be included
under each of the headings listed in that rule. Operators must give enough detail for us to
confirm that the scheme deals with each of the issues raised in that section.
5.7
A template penalty fares scheme is attached in appendix D, and we recommend that operators
use this as the basis for their scheme. The template should be changed as necessary to reflect
the details of the scheme.
‘the train services which will become penalty fares trains for the purposes of the
scheme’

5.8
The description of the scheme must name the train services which are to be penalty fares
trains. This may be done by area or by route, for example, ‘All train services operated by [name
of operator] within the area bounded by [list of boundary stations]’ or ‘All train services
operated by [name of operator] on the following routes: station x to station y, station p to
station q’. 
5.9
A map or plan should be included showing the routes and area which the scheme will cover. 

17
‘the stations which will become penalty fares stations for the purposes of the scheme’
5.10 The description of the scheme must list the names of the stations which will be penalty fares
stations. 
5.11 The description of the scheme must list any stations that are directly served by penalty fares
trains but which will not be made penalty fares stations, giving the reason. 
‘the stations where there will be compulsory ticket areas, and the location and extent of
these areas’

5.12 The description of the scheme must list:
• the name of any station where there will be a CTA;
• a brief description of the part of the station that the CTA will cover (for example ‘all
platforms and the footbridge’); 
• the reason why the CTA is necessary; and
• the arrangements that will be made to allow people who are not travelling to enter the part
of the station covered by the CTA, if they have a good reason for doing so. 
‘the ticket selling facilities available at each penalty fares station’
5.13 The description of the scheme must give, for each penalty fares station:
• the opening hours of any staffed ticket office;
• the number and type of self-service ticket machines;
• the number of ‘permit to travel’ machines (PERTIS); 
• the arrangements for switching on any ‘permit to travel’ machine when the ticket office is
closed, temporarily unstaffed, or when long queues build up; 
• the arrangements for checking ticket or permit machines, and putting any faults right; and
• confirmation that under normal circumstances, the queuing standards set out in the
operator’s Passenger’s Charter and in the Ticketing and Settlement Agreement are met at
that station, or, if they are not, a description of what will be done to make sure that the
standards will be met in future or to make sure that passengers are not charged penalty fares
when the standards are not met. 
For each type of ticket machine, there should be a brief description of the range of ticket types
sold by that type of machine, the number of destinations available and the methods of
payment which are accepted. 
‘the arrangements for publicising the penalty fares scheme and for displaying warning
notices in line with rule 4’

5.14 The description of the scheme must include:
• confirmation that notices will be displayed at each penalty fares station for at least three
weeks before the scheme is introduced, in line with rule 3.4 (the wording of these notices
should be attached to the description of the scheme);

18
• confirmation that staff (including platform staff, ticket office staff, traincrew and customer
services staff) will be briefed on the scheme and how it will work;
• details of the planned publicity before the scheme is launched, including details of posters,
announcements on trains and at stations, and any newspaper or radio adverts (if possible,
the script of any announcement and the wording of any poster should be attached to the
description of the scheme);
• confirmation that leaflets explaining the scheme will be produced and made available at each
staffed penalty fares station at least three weeks before the scheme is introduced (the
wording of the leaflet should be attached to the description of the scheme); 
• a commitment to make sure that these leaflets are available at every staffed penalty fares
station and from the operator’s customer services department for as long as the scheme is in
force; 
• confirmation that large print and audio versions will be available from the operator’s
customer services department if passengers ask;
• confirmation that penalty fares warning notices will be displayed at every penalty fares
station and at each entrance to each CTA in line with rule 4, and that these will follow a code
of practice which we have approved (the wording and design of these notices should be
attached to the description of the scheme);
• details of the arrangements for checking that the warning notices are properly displayed;
and
• details of how customer information systems will be used to show penalty fares warnings
for individual trains.
‘the procedures for selecting and training, and briefing and refresher training, the
people who are to be appointed as authorised collectors’

5.15 The description of the scheme must include:
• a description of the selection processes for authorised collectors (if a person specification
will be used, it should be attached to the description of the scheme);
• a description of the initial training which authorised collectors will receive;
• the training standard, if training is to be given to a particular recognised standard;
• details of the procedures for assessing and certifying authorised collectors after training;
• a description of the arrangements for regularly briefing authorised collectors; and
• a description of the refresher training and re-certification of authorised collectors, including
details of how often they will be given refresher training.

19
‘the systems and procedures to allow authorised collectors to check that ticket selling
facilities are available and that warning notices are displayed at each penalty fares
station for the purpose of rule 7’

5.16 The description of the scheme must explain the arrangements for telling authorised collectors
about ticket offices which are closed when they should be open, ‘permit to travel’ and ticket
machines which are not working properly and ticket offices where long queues have built up.
The description must include the opening hours of any control centre.
‘the arrangements for selling tickets on board penalty fares trains’
5.17 The description of the scheme should normally say one of the following.
a
The operator does not intend to train its on-train staff as authorised collectors. However,
staff who are not trained as authorised collectors will not be allowed to sell tickets on
board penalty fares trains unless they are accompanied by an authorised collector. 
b The operator will train its on-train staff as authorised collectors. Any staff who are not
trained as authorised collectors will not be allowed to sell tickets on board penalty fares
trains unless they are accompanied by an authorised collector.
c
The operator does not intend to train on-train staff as authorised collectors. On-train
staff will check and sell tickets on board penalty fares trains, but will give a printed penalty
fares warning to any passenger who is liable to a penalty fare, and draw that passenger’s
attention to the warning.
5.18 In the case of penalty fares schemes which use the printed warnings described in c above, the
following information must also be provided.
• The wording and a description of the printed warning, and details of how it will be issued.
• Details of the training which on-train staff will receive about the principles of the penalty
fares scheme and how to use the printed penalty fares warning.
• Details of ‘refresher’ training which on-train staff will receive and how often it will be given.
• Details of the processes and procedures which the operator will use to make sure that each
member of on-train staff issues the penalty fares warnings properly. 
‘any arrangements which will apply between the operator and any other operator
relating to:
• collecting penalty fares at stations which are served by more than one operator; and
• charging penalty fares in connection with a compulsory ticket area at a station that is

served by trains of more than one operator.’
5.19 The description of the scheme must name any penalty fares stations or stations with a CTA
which are served by trains of other operators (including London Underground). If another
operator does not have a penalty fares scheme covering trains calling at that station, the
scheme must say that passengers without tickets getting on or off that operator’s trains at that
station will not be charged penalty fares, but will be dealt with in line with the current
National Rail Conditions of Carriage.

20
5.20 If another train operator also has a penalty fares scheme which covers trains calling at that
station, the description of the scheme must say whether authorised collectors will be allowed
to collect penalty fares on behalf of the other operator and whether the authorised collectors
of the other operator will be allowed to charge penalty fares under the scheme being
proposed.
5.21 If another train company’s authorised collectors will be allowed to collect penalty fares under
the scheme being proposed, the description of the scheme must also set out the arrangements
which will be made to train the other company’s authorised collectors in the details of the
scheme and to allow these authorised collectors to check that ticket facilities are available and
warning notices are displayed at penalty fares stations.
‘the arrangements for processing and deciding appeals’
5.22 The description of the scheme must explain the arrangements to be made for handling and
deciding appeals in line with a code of practice which we have approved. At the time of writing
this policy document, all penalty fares schemes use the Independent Penalty Fares Appeal
Service (IPFAS) to deal with appeals. We have approved a code of practice which IPFAS
follows when deciding appeals. 
5.23 The description of the scheme must confirm that details of the scheme, including details of
penalty fares trains and stations, ticket facilities and instructions given to authorised
collectors, will be provided to IPFAS and updated when there are any changes.
‘… a copy of the written instructions and information which will be given to each
authorised collector containing guidance and setting rules for their appearance,
behaviour and use of discretion’

5.24 Operators must send us a copy of the instructions which will be given to authorised
collectors. The instructions must deal with each of the points made in paragraphs 4.25 to 4.32.
6
Changing, suspending or withdrawing a scheme
Changing a scheme 
6.1
An operator may want to make changes to their scheme, for example, if it wants to alter the
area covered by penalty fares trains or revise the instructions given to authorised collectors. A
penalty fares scheme will also need to be changed if the circumstances described in the scheme
alter, for example, if ticket facilities are to be reduced at any penalty fares station, or if a new
train service to which penalty fares do not apply will start calling at a station with a
compulsory ticket area. As with a new scheme, we recommend that the operator first
discusses any changes with us, the relevant RPC and any PTE informally.
6.2
The procedure for changing an existing scheme is set out in rule 11 of the Penalty Fares Rules.
The operator must send a summary of the changes, which should include a brief explanation
of the reason for them, to us, the relevant RPC and any relevant PTE at least six weeks before
the date on which the changes will be introduced. The summary must be accompanied by a
revised and complete version of the description of the scheme which was originally sent to us
for approval under rule 3. If this was sent to us in a loose-leaf ring binder, only replacement

21
pages for the relevant sections of the description need to be provided, but any new pages must
be clearly marked with the page number and date of issue. 
6.3
We will consider the changes and the revised description of the scheme against the policy set
out in section 4 of this document. In particular, we will want to see that the changes receive
enough publicity and that, if necessary, the operator will arrange for leaflets, notices and other
publicity to be revised or reprinted to reflect the changes to the scheme. Any out-of-date
leaflets or notices must be withdrawn. If any station stops being a penalty fares station as a
result of the changes, the notices displayed under rule 4 must be removed immediately after
the change takes effect. 
Withdrawing a scheme
6.4
The procedure for withdrawing a scheme is set out in rule 12. The operator does not need to
give advance notice, but must tell us, the relevant RPC and any relevant PTE on or before the
date on which they withdraw the scheme. If the operator wants to re-introduce the scheme
later on, it must be treated as a new scheme, and the operator must follow the procedure set
out in rule 3.
6.5
The withdrawal of a penalty fares scheme may affect the scheme or schemes run by other
operators. If this is the case, the operator of the scheme that is to be withdrawn must tell the
other operators in time for them to make any necessary changes to their own schemes. 
6.6 
If an operator wants to withdraw part of their scheme, for example, to reduce the number of
penalty fares trains or penalty fares stations, this must be treated as changing the scheme and
rule 11 will apply.
Suspending a scheme
6.7
Sometimes, for various reasons, an operator may want to temporarily suspend their scheme.
The Penalty Fares Rules do not force an operator to charge a penalty fare in any particular
circumstances and if the operator simply intends to use extra discretion, or even stop charging
penalty fares completely for a short period of time (for example, less than one month), no
special arrangements may need to be made. However, if an operator stops charging penalty
fares for a longer period of time, passengers may be led to believe that penalty fares are no
longer charged. This may cause problems when the operator starts charging penalty fares
again. 
6.8
An operator who wants to suspend their scheme for longer than one month should discuss
the proposal with us first. The operator must think carefully about publicity, especially for the
time when they start charging penalty fares again. A pre-planned suspension should normally
be treated as a change to a scheme under rule 11. 
7
When the SRA may prevent an operator charging penalty
fares

7.1
Rule 13 of the Penalty Fares Rules allows us to stop an operator charging penalty fares if we
have reason to believe that they are not following the rules, the regulations or their own
penalty fares scheme. Operators must make sure that other operators (or other parts of their

22
own company) do not introduce changes which affect their penalty fares scheme. For
example, if a scheme says that certain ticket facilities will be provided at a station, and ticket
machines at that station are removed or ticket office opening hours reduced, an operator will
no longer meet the requirements of their scheme.
7.2
Rule 13 also allows us to stop an operator charging penalty fares if we think that a scheme is
being operated in a way which doesn’t give passengers sufficient protection. There are a
number of circumstances where this might be the case, even if the operator is following the
rules, regulations and its own scheme. For example, if:
• authorised collectors are put under unnecessary pressure to meet revenue targets, so that
they do not use their discretion in cases where the scheme says that they should;
• the ticket facilities listed in the scheme are regularly unavailable because of staff shortages or
ticket-machine breakdowns; or
• the ticket facilities listed in the scheme are insufficient because of serious queuing problems.
7.3
Rule 13 allows us to stop operators charging penalty fares either completely or in connection
with particular penalty fares trains or stations, depending on the circumstances. For example,
if an operator does not sort out a serious queuing problem so that passengers do not have
sufficient opportunity to buy a ticket, we might stop them charging penalty fares to
passengers who join trains at that station.
7.4 
Under rule 5.5, if we are not satisfied that a person is a fit and proper person to be an
authorised collector, we may tell the operator to withdraw that person’s authority to collect
penalty fares. We expect operators to fully investigate any public complaint about an
authorised collector, and to take any necessary action quickly. It is essential that a full record is
kept of each part of the investigation, as we may ask to see these records or ask for further
investigation to be carried out in connection with this rule.

23
Appendix A: Penalty Fares Rules 2002
Contents
Page
1
The rules
24
2
Definitions
24
3
Setting up a penalty fares scheme
25
4
Displaying warning notices
26
5
People who may charge penalty fares
27
6
People who may be charged a penalty fare
27
7
Circumstances in which a penalty fare may not be charged
28
8
Arrangements for charging and paying penalty fares
29
9
Appeals
30
10
Providing information
30
11
Changing a penalty fares scheme
31
12
Withdrawing a penalty fares scheme
31
13
When the SRA may prevent an operator charging penalty fares
32
14
Commencement and transitional arrangements
32

24
1
The rules 
1.1
The SRA has made these rules under regulation 11 of the Railways (Penalty Fares)
Regulations 1994. The Railways (Penalty Fares) Regulations 1994 were made under section
130 of the Railways Act 1993, as amended by the Transport Act 2000.
1.2
These rules may be referred to as the ‘Penalty Fares Rules 2002’.
1.3
These rules will apply from 1 May 2002.
2
Definitions
In these rules, the terms below have the following meanings, unless we tell you otherwise.
a
The ‘Act’ means the Railways Act 1993, as amended by the Transport Act 2000.
b The ‘Regulations’ means the Railways (Penalty Fares) Regulations 1994 (S.I. 1994/576).
c
‘Approved penalty fares scheme’ means a scheme for charging penalty fares which the SRA
has approved under rule 3, including any changes to that scheme which the SRA has
approved under rule 11.
d ‘Penalty fares train’ means a train for which penalty fares may be charged, in line with an
approved penalty fares scheme and with these rules, to passengers without a valid ticket
who have boarded at a penalty fares station.
e
‘Penalty fares station’ means a station where, if a person without a valid ticket boards a
train which is a penalty fares train, he or she may have to pay a penalty fare in line with an
approved penalty fares scheme and with these rules.
f
‘Authorised collector’ means a person who is allowed to collect penalty fares on behalf of a
train operator in line with rule 5.
g ‘Compulsory ticket area’ means any area at a station identified by a notice which indicates
that people may not enter that area without a ticket or other authority allowing them to
enter that area, or to travel on a train arriving at or departing from that area.
h ‘Operator’, in relation to any train or station, means the person who must hold a licence or
licence exemption to operate that train or station under section 6 of the Act.
i
‘National Rail Conditions of Carriage’ means the National Rail Conditions of Carriage
approved by the Rail Regulator and which came into effect on 20 February 2000, as
amended from time to time with the SRA’s approval, or any other conditions of carriage
which apply to the journey being made.
j
‘SRA penalty fares policy statement’ means a statement of policy about penalty fares
schemes which the SRA may publish from time to time.
k Any reference to a person leaving a train includes a person who is present at, or who is
leaving, a station after they have left a train arriving at that station.
l
Any reference to a person leaving a train includes a person who is present in, or who is

25
leaving, a compulsory ticket area after leaving a train which arrived at that compulsory
ticket area.
m Any reference to a ‘passenger’ includes anyone who is in a compulsory ticket area,
whether or not they have travelled, or intend to travel, on a train.
n If a ticket or other authority is only valid for travel when it is used with another document
(such as a photocard or railcard), a reference to a ticket includes this document.
o For the purposes of rules 7.2 and 7.3, if a person has changed onto the relevant train from
a previous train which was also a penalty fares train under the same approved penalty fares
scheme, a reference to the station where the person got on the train means the station
where that person got on the first train.
p Unless we tell you otherwise, words and expressions defined in the Act or in the
Regulations have the same meanings in these rules.
q Headings are for convenience only and are not part of the rules. 
3
Setting up a penalty fares scheme
3.1 
Operators may only charge penalty fares in line with an approved penalty fares scheme.
3.2 
Any train operator who wants to introduce a penalty fares scheme must do the following.
a  Send a notice, at least three months before the date on which it is proposed to begin
charging penalty fares, to:
i the 
SRA;
ii  the Rail Passengers Committee for any area in which the proposed scheme will apply; 
and
iii the relevant Passenger Transport Executive, if an operator wants a train service which
is sponsored by a Passenger Transport Executive, or which passes through an area
covered by a Passenger Transport Executive, to become a penalty fares train.
The notice must explain the reasons for wanting to introduce a penalty fares scheme, and
must give the date on which the operator proposes to start charging penalty fares.
b  Send a description of the proposed scheme with the notice which sets out:
i
the train services which will become penalty fares trains for the purposes of the
scheme;
ii the stations which will become penalty fares stations for the purposes of the scheme; 
iii the stations where there will be compulsory ticket areas, and the location and extent of
these areas;
iv the ticket selling facilities available at each penalty fares station;
v
the arrangements for publicising the penalty fares scheme and for displaying warning
notices in line with rule 4;

26
vi the procedures for selecting, training, briefing and refresher training the people who
are to be appointed as authorised collectors; 
vii the systems and procedures to allow authorised collectors to check that ticket selling
facilities are available and that warning notices are correctly displayed at each penalty
fares station for the purpose of rule 7;
viii the arrangements for selling tickets on board penalty fares trains;
ix any arrangements which will apply between the operator and any other operator
relating to:
• collecting penalty fares at stations which are served by more than one operator; and
• charging penalty fares in connection with a compulsory ticket area at a station which
is served by trains of more than one operator; and
x
the arrangements for processing and deciding appeals. 
c
Send with the description of the scheme a copy of the written instructions and
information which will be given to each authorised collector, containing guidance and
setting rules about their appearance, behaviour and how to use discretion.
3.3
The SRA will consider the proposed scheme, taking account of all relevant matters including
the policy set out in the SRA penalty fares policy statement. The SRA may, after consulting
any Rail Passengers Committee and Passenger Transport Executive referred to in rule 3.2,
approve or reject the proposed scheme, giving notice to the operator in writing. The SRA will
send a copy of this notice to everyone who received a copy of the notice referred to in rule 3.2.
3.4
If the SRA approves the proposed scheme, the operator must arrange for notices to be
displayed in clearly visible positions at each station which is to become a penalty fares station,
advising passengers that a penalty fares scheme is to be introduced. These notices must be
displayed for at least three weeks before the scheme is introduced, and must be in line with
rule 4.3.
3.5
If an operator proposes to give, or has given, notice that they want to introduce a penalty fares
scheme, the SRA may shorten the notice period required by rule 3.2, as long as each relevant
Rail Passengers Committee and Passenger Transport Executive agrees. 
4
Displaying warning notices
4.1
An operator who wants to charge penalty fares must make sure that warning notices are
displayed at every penalty fares station. These warning notices must be in line with rule 4.3,
and must be displayed so that at least one notice can be clearly seen by any passenger joining
any penalty fares train or changing onto a penalty fares train from any other train.
4.2
An operator who wants to charge penalty fares must make sure that a warning notice is
displayed at each entrance of each compulsory ticket area. These warning notices must be in
line with rule 4.3.

27
4.3
Warning notices must:
i
be noticeable, easy to read and easy to distinguish from other notices and from the general
surroundings;
ii explain clearly when a penalty fare may be charged;
iii give the amount or maximum amount of any penalty fare; 
iv meet any requirement contained in the operator’s approved penalty fares scheme; and
v
follow a code of practice approved by the SRA for the purposes of this rule.
4.4
If asked to do so by a train operator, a station operator must provide facilities to display
warning notices so that the train operator can obey rule 4. The train operator must pay the
costs involved.
5
People who may charge penalty fares
5.1
In line with the Act, the Regulations and these rules, penalty fares may be charged by, or on
behalf of, the operator of any train. 
5.2
No-one except an authorised collector may collect penalty fares on behalf of any operator.
5.3
A person will only be an authorised collector for any penalty fares train if he or she has been
individually authorised by, or on behalf of, the operator of that train to collect penalty fares in
line with an approved penalty fares scheme and this authorisation is still valid.
5.4
Each authorised collector must carry, and produce if asked, identification which proves that
he or she is authorised to collect penalty fares on behalf of a specific operator or operators.
This identification must be in line with a code of practice approved by the SRA for the
purposes of this rule. Authorised collectors must allow passengers to make a note of the
relevant details of their identification and authority.
5.5
If, at any time, the SRA is not satisfied that a person is a fit and proper person to be an
authorised collector, the SRA may send a notice to the relevant operator requiring them to
withdraw that person’s authority to collect penalty fares.
6
People who may be charged a penalty fare
6.1
Any person travelling by, present on or leaving a penalty fares train must, if asked by an
authorised collector, produce a valid ticket or other authority for the journey they have made
or are making.
6.2
If a person fails to produce a valid ticket or other authority in line with rule 6.1, the authorised
collector may charge that person a penalty fare, in line with the Regulations and these rules.
6.3
Any person who is present in a compulsory ticket area intending to board a train must, if
asked by an authorised collector, produce a valid ticket or other authority for the journey
which they intend to make on that train.

28
6.4
Any person who is present in, or leaving, a compulsory ticket area, other than a person
referred to in rule 6.1 or 6.3, must, if asked by an authorised collector, produce a valid ticket or
other authority allowing them to be present in that compulsory ticket area.
6.5
If a person fails to produce a valid ticket or other authority in line with rule 6.3 or 6.4, the
authorised collector may charge that person a penalty fare, in line with the Regulations and
these rules.
6.6
The amount of any penalty fare must be as set out in the Regulations.
6.7
For the purposes of rule 6.2, a ticket or other authority is not valid for a journey if it is not
valid for the class of travel used on that journey.
7
Circumstances in which a penalty fare may not be charged
7.1
Operators may only charge penalty fares to people who are: 
a
travelling by, present on or leaving a train which is named as a penalty fares train by an
approved penalty fares scheme; or
b  present in, or leaving, a compulsory ticket area which is named as part of an approved
penalty fares scheme.
7.2
An authorised collector must not charge a penalty fare under rule 6.2 if the person joined the
train at a station which is not named as a penalty fares station by the relevant approved penalty
fares scheme.
7.3
An authorised collector must not charge a penalty fare under rule 6.2 if any of the following
circumstances applied at the station where the person joined the relevant train.
a
There were no facilities available to issue the appropriate ticket or other authority for the
journey which that person wanted to make.
b Warning notices were not displayed in line with rule 4.
c
A notice was displayed which indicated that passengers were allowed to board that train
without a ticket or other authority to travel.
d A person acting, or appearing to act, on behalf of the operator of that train or station
indicated that the person was, or people generally were, allowed to board that train
without a ticket or other authority to travel.
7.4
An authorised collector must not charge a penalty fare under rule 6.5 if, when the person
entered the compulsory ticket area:
a
there were no facilities available for selling the appropriate ticket or other authority for the
journey the person wanted to make or for entering the compulsory ticket area;
b warning notices were not displayed at the entrances to the compulsory ticket area in line
with rule 4;
c
a notice was displayed which indicated that people were allowed to board the relevant train
or enter the compulsory ticket area without a ticket or other authority to do so; or

29
d a person acting, or appearing to act, on behalf of the operator of the relevant train or of
that station indicated that the person was, or people generally were, allowed to board that
train or enter the compulsory ticket area without a ticket or other authority to do so.
7.5
An authorised collector must not charge a penalty fare to a person travelling in a class of
accommodation for which their ticket is not valid if:
a
a notice was displayed which indicated that people with standard class tickets were
allowed to travel in that accommodation without further charge or if they paid a specified
charge; or
b a person acting, or appearing to act, on behalf of the operator of the relevant train
indicated that people with standard class tickets were allowed to travel in that
accommodation without further charge.
7.6
An authorised collector must not charge a penalty fare to a person whose ticket is not valid
only because of a published restriction, as described in condition 12 of the National Rail
Conditions of Carriage. 
7.7
Except when he or she is applying rule 6.7, an authorised collector must not charge a penalty
fare if this would conflict with the rights given to the person by the National Rail Conditions
of Carriage.
8
Arrangements for charging and paying penalty fares
8.1
If a person is to be charged a penalty fare, the authorised collector must tell them:
a
that they are to be charged a penalty fare;
b why they are being charged a penalty fare;
c
the amount of the penalty fare; and
d that they have the right to appeal against the penalty fare within 21 days.
8.2
The authorised collector may require that person to make a minimum payment that is equal to
the full single fare which they would have had to pay for their journey if penalty fares had not
applied. The person must be given 21 days to pay the rest of the penalty fare, starting on the
day that penalty fare is charged. If the penalty fare is not paid in full immediately, it must be
paid in any way that is set out in the notice referred to in rule 8.3.
8.3
If a person wants to appeal against the penalty fare, or does not pay the penalty fare in full
immediately, the authorised collector must give them a written notice setting out:
a
the identity of the authorised collector and the name of the train operator that he or she is
acting for;
b the amount of the penalty fare and why it has been charged;
c
the address to which they must send payment;
d the ways in which they can pay; 

30
e
that they must pay within 21 days of receiving the notice;
f
that they can ask for a copy of these rules and a summary of the operator’s approved
penalty fares scheme by writing or sending an e-mail to a given address or calling a given
phone number; and
g that they are entitled to appeal against the penalty fare by sending a written statement to a
given address, within 21 days of the day on which the penalty fare is charged, explaining
why they should not have to pay the penalty fare.
8.4
If a person pays all or part of a penalty fare, the authorised collector must give them a receipt
for the payment. The receipt must set out each of the matters listed in rule 8.3.
8.5
A receipt given under rule 8.4 or a notice given under rule 8.3 must allow the person to whom
it is given to continue the train journey to which it relates to the next scheduled stop or to any
other stop shown on that receipt or notice. If the person wants to travel beyond this stop,
they must pay the relevant fare from this stop to their destination station as well as the penalty
fare. If the receipt or notice is given in connection with a compulsory ticket area, it must allow
the person to leave the compulsory ticket area.
8.6
If asked by a person who has been charged a penalty fare, an operator must send that person a
complete and up-to-date copy of these rules and an appropriate summary of their approved
penalty fares scheme.
8.7
In line with the Regulations, any operator who collects penalty fares, or on whose behalf
penalty fares are collected, may keep the amounts that are collected.
9
Appeals
Every approved penalty fares scheme must include a procedure for passengers to appeal against a
penalty fare. Appeals must be processed and decided in line with a code of practice approved by the
SRA.
10 Providing information
10.1 If asked by the operator of an approved penalty fares scheme, a train or station operator must
promptly supply any information available to him or her which is necessary for penalty fares
to be charged fairly, efficiently and in line with the Regulations and these rules.
10.2 The information which may be asked for under rule 10.1 includes (but is not limited to)
information about the ticket facilities that are available at stations, whether warning notices
are correctly displayed at stations, and any other information needed to check the facts if a
person who has been charged a penalty fare makes an appeal.
10.3 A train or station operator must promptly supply any information or explanations that the
SRA asks for in connection with charging or a proposal to charge penalty fares. This includes
any information needed by the SRA to investigate complaints or to confirm that an operator is
following the Regulations and these rules. It also includes any information needed to decide
whether to prevent the charging of penalty fares under rule 13, or to exercise the SRA’s powers

31
under rule 5.5. If the SRA asks a Rail Passengers Committee to help it carry out any
investigation connected with penalty fares, the operator must reply to any request for
information made by the Rail Passengers Committee as if it was made by the SRA.
10.4 Any train or station operator (whether or not it charges penalty fares) must promptly meet
any requirements placed on him or her by the SRA about displaying warning notices,
providing ticket facilities or supplying information, if the SRA considers that this is necessary
to allow any other operator to charge penalty fares fairly and effectively. The SRA may set
these requirements on the condition that the operator who will benefit must pay the
reasonable costs of carrying them out.
11 Changing a penalty fares scheme
11.1 If the operator of an approved penalty fares scheme wants to make any changes to that
scheme, he or she must apply to the SRA for permission at least six weeks before the proposed
date of the change. At the same time, the operator must give the SRA, any Rail Passengers
Committee and Passenger Transport Executive referred to in rule 3.2 a summary of the
proposed changes and a revised description of the scheme in line with rule 3.2(b). 
11.2 The SRA will consider the changes, taking account of all relevant matters including the policy
set out in the SRA penalty fares policy statement. The SRA may, after consulting any Rail
Passengers Committee and Passenger Transport Executive referred to in rule 3.2, approve or
reject the changed scheme by giving the train operator notice, in writing. The SRA will send a
copy of the notice to everyone who received the notice referred to in rule 3.2.
11.3 If any station stops being a penalty fares station as a result of changes approved under rule
11.2, the operator must make sure that the warning notices provided under rule 4 are removed
promptly.
11.4 The operator must make sure that any notices, leaflets or other publicity referring to the
scheme are promptly amended or replaced to reflect any changes approved under rule 11.2. 
11.5 If an operator asks permission to change their penalty fares scheme, the SRA may shorten the
notice period required by rule 11.1, as long as each relevant Rail Passengers Committee and
Passenger Transport Executive agrees. 
12 Withdrawing a penalty fares scheme
12.1 If the operator of an approved penalty fares scheme wants to withdraw the scheme he or she
must give notice, in writing, to:
a
the SRA;
b any Rail Passengers Committee and Passenger Transport Executive referred to in rule 3.2;
and
c
any other operator whose penalty fares scheme may be affected by the withdrawal.

32
Notice must be given to the SRA, any relevant Rail Passengers Committee and Passenger
Transport Executive no later than the date of withdrawal. Other operators must be given
enough notice for them to make any necessary changes to their own penalty fares schemes.
12.2 The operator must make sure that the warning notices provided under rule 4 are removed as
soon as possible after a penalty fares scheme is withdrawn.
12.3 If an operator wants to start charging penalty fares again after withdrawing an approved
penalty fares scheme under rule 12.1, he or she must follow the process set out in rule 3.
12.4 If the operator of an approved penalty fares scheme wants to withdraw part, but not all, of a
scheme, they must follow the process set out in rule 11.
13 When the SRA may prevent an operator charging penalty
fares
13.1 The SRA may issue a prohibition notice preventing an operator from charging penalty fares if
it has reasonable grounds for suspecting that the operator is not following any part of the
Regulations, these rules or their own approved penalty fares scheme, or is operating their
scheme in a way which the SRA reasonably considers does not provide sufficient protection
for passengers.
13.2 The prohibition notice may prevent an operator from charging penalty fares either completely
or in connection with specific penalty fares stations, penalty fares trains or compulsory ticket
areas. When a prohibition notice is received, the operator must immediately stop charging
penalty fares as set out in the notice, until such time as the SRA withdraws the notice.
13.3 The SRA will send a copy of any prohibition notice to:
a
the Secretary of State; 
b the Rail Passengers Committee for any area in which the operator runs passenger train
services; and
c
the Passenger Transport Executive for any area in which the operator runs passenger train
services.
14 Commencement and transitional arrangements
14.1 These rules will apply from 1 May 2002 and, except as allowed under rule 14.2, they replace the
rules made on 28 April 1997 (the ‘former rules’) which will no longer apply from that date.
14.2 Any train operator charging penalty fares under the former rules immediately before these
rules come into effect may continue to charge penalty fares to the same extent as they were
able to do under the former rules without first following rule 3.2 as long as:
a
within three months of these rules coming into effect, the operator follows the process set
out in rule 3.2; and
b the SRA approves the train operator’s penalty fares scheme under rule 3.3 no later than six
months after it receives the documents referred to in paragraph (a) above.

33
14.3 The SRA may, as a condition of any approval under rule 14.2(b), require the operator to make
suitable arrangements to publicise any changes to their scheme. 
14.4 The code of practice referred to in rules 4.3 and 5.4 must be submitted and approved by the
SRA no later than 1 August 2002, or any other date that may be agreed between the SRA and
the operators concerned.

34
Appendix B*: The Railways (Penalty Fares) Regulations 1994
STATUTORY INSTRUMENTS 
1994 No. 576 
TRANSPORT 
The Railways (Penalty Fares) Regulations 1994
Made 
7th March 1994
Laid before Parliament 
8th March 1994
Coming into force 
1st April 1994 
The Secretary of State, in exercise of the powers conferred on him by sections 130, 143(3) and
143(4) of the Railways Act 1993, hereby makes the following Regulations:
Citation and commencement
1.
(1) These Regulations may be cited as the Railways (Penalty Fares) Regulations 1994.
(2) These Regulations shall come into force on 1st April 1994.
Interpretation
2.
(1) In these Regulations:
“authorised collector” means a person authorised to be a collector by or under rules;
“compulsory ticket area” means any area at a station identified by a notice which indicates
that persons may not enter that area without being able to produce a ticket or other
authority authorising travel on a train arriving at or departing from that area or otherwise
authorising entry into that area;
“operator”, in relation to any train, means the person having the management of that train
for the time being and, in relation to any station, means the person having the
management of that station for the time being, and “operated” shall be construed
accordingly;
“preceding train” means a train: 
(a) by which a person travelled before changing to the train by which he is travelling, on
which he is present or which he is leaving for the purposes of these Regulations; and
(b) which was operated by the operator of the train to which that person changed;
“rules” means rules made by the Regulator under regulation 11;
“section 130” means section 130 of the Railways Act 1993.
* Plain English Campaign’s Crystal Mark does not apply to this appendix

35
(2) In these Regulations any reference to a person leaving a train includes a person present in
or leaving a compulsory ticket area having left a train arriving at that compulsory ticket
area.
(3) Where the terms on which a ticket or other authority is issued require the holder to
produce on request any other document when using that ticket or other authority, any
reference in these Regulations to a ticket or other authority includes such a document.
(4) In these Regulations, where the context so admits, any reference to a ticket or other
authority includes a ticket or other authority valid for the class of travel used or being used
by the holder of that ticket or other authority.
(5) In these Regulations, any reference to a numbered regulation shall mean the regulation
bearing that number in these Regulations and any reference in a regulation to a numbered
paragraph is a reference to the paragraph bearing that number in that regulation.
Requirement to produce a ticket
3.
(1) Subject to the provisions of these Regulations and to rules, any person present travelling by,
present on or leaving a train shall, if required to do so by or on behalf of the operator of that
train in accordance with these Regulations and with rules, produce a ticket or other
authority authorising his travelling by or his being present on that train, as the case may be.
(2) Subject to the provisions of these Regulations and to rules, any person present in or
leaving a compulsory ticket area, other than a person leaving a train, shall, if required to do
so by or on behalf of the operator of a train in accordance with these Regulations and with
rules, produce a ticket or other authority authorising him to be present in or leave that
compulsory ticket area.
(3) Any requirement imposed pursuant to this regulation shall be imposed by an authorised
collector in the manner specified in rules.
Charge to a penalty fare
4.
(1) Subject to the provisions of these Regulations and to rules, where a person fails to produce
a ticket or other authority when required to do so by or on behalf of an operator pursuant
to regulation 3, that operator, or any person acting on behalf of that operator, may charge
that person a penalty fare.
(2) Nothing in these Regulations or in rules shall authorise the operator of a train or a person
acting on behalf of him to charge a penalty fare in respect of: 
(a)  travel by, presence on or leaving a train other than a train operated by that operator; or
(b) presence in or leaving a compulsory ticket area unless it is a compulsory ticket area at
which a train operated by that operator has arrived or from which such a train will
depart.
(3) Any charge made pursuant to this regulation shall be imposed by an authorised collector
in the manner specified in rules.
(4) The amount of any penalty fare charged in accordance with these Regulations shall be paid
in the manner and within the period specified in rules.

36
Amount of a penalty fare
5.
(1) Subject to paragraph (5), the amount of any penalty fare which may be charged under
regulation 4 is £10.00 or twice the amount of the full single fare applicable in the case,
whichever is the greater.
(2) The full single fare applicable in the case of a person charged a penalty fare while travelling
by, being present on or leaving a train, having travelled on or having been present on a
preceding train, is the full single fare in respect of a journey from the station (in this
regulation referred to as “the first boarding station”), at which that person boarded the
preceding train, to the next station at which the train by which he is travelling or on which
he is present is scheduled to stop, or, where that person is leaving the train at a station, that
station.
(3) The full single fare applicable in the case of a person, other than a person referred to in
paragraph (2), charged a penalty fare while travelling by, being present on or leaving a train
is the full single fare in respect of a journey from the station (in this regulation referred to
as “the boarding station”), at which that person boarded the train, to the next station at
which the train by which he is travelling or on which he is present is scheduled to stop, or,
where that person is leaving the train at a station, that station.
(4) Where the first boarding station or, as the case may be, the boarding station is not known
to the authorised collector, the full single fare applicable in the case of a person charged a
penalty fare while travelling by, being present on or leaving a train is the full single fare in
respect of a journey from the station at which the train last made a scheduled stop, to the
next station at which the train by which he is travelling or on which he is present is
scheduled to stop, or, where that person is leaving the train at a station, that station.
(5) The amount of any penalty fare which may be charged under regulation 4 to a person
present in or leaving a compulsory ticket area, other than a person leaving a train, is £10.00.
Circumstances in which a penalty fare is not to be charged where a person is travelling
on a train

6.
(1) Subject to the provisions of paragraph (3), in the case of a person travelling by, being
present on or leaving a train (in this regulation referred to as “the relevant train”), no
person shall be charged a penalty fare in the circumstances to which this regulation
applies.
(2) The circumstances to which this regulation applies are that, at the time when and at the
station where the person in question boarded the relevant train, or, in the case where a
person has boarded the relevant train after travelling on a preceding train, that, at the time
when and at the station where the person in question boarded that preceding train, 
(a) there were no facilities in operation for the sale of the appropriate ticket or other
authority to make the journey being or having been made by that person;
(b) the requirements of rules in respect of the display of notices were not satisfied;
(c) a notice was displayed indicating that the person in question was, or persons generally
were, permitted to travel by or be present on the relevant train or, as the case may be,
the preceding train without having a ticket or other authority; or

37
(d) a person acting or purporting to act on behalf of: 
(i)   the operator of the relevant train, or
(ii)  the operator of the station in question,
indicated that the person in question was, or persons generally were, permitted to
travel by or be present on the relevant train or, as the case may be, any preceding train
without having a ticket or other authority.
(3) Paragraphs (1) and (2) of this regulation shall not prevent a person from being charged a
penalty fare where he had been invited by anybody acting on behalf of the operator of the
relevant train or any preceding train to obtain a ticket or other authority while travelling
on or present on the relevant train or that preceding train.
Circumstances in which a penalty fare is not to be charged where a person is in a
compulsory ticket area

7.
(1) No person present in or leaving a compulsory ticket area, but who is not leaving a train,
shall be charged a penalty fare in the circumstances to which this regulation applies.
(2) The circumstances to which this regulation applies are that: 
(a) there were no facilities in operation at the station (in this regulation referred to as “the
relevant station”) of which the compulsory ticket area formed part for the sale of the
appropriate ticket or other authority to be present in that compulsory ticket area;
(b) the requirements of rules with respect to the display of notices were not satisfied in
relation to that compulsory ticket area;
(c) a notice was displayed at the relevant station indicating that the person in question
was, or persons generally were, permitted to be present in that compulsory ticket area
without having a ticket or other authority; or
(d) a person acting or purporting to act on behalf of:
(i)   the operator of any train departing from that compulsory ticket area, or
(ii)  the operator of the relevant station
indicated that the person in question was, or persons in general were, permitted to be
present in that compulsory ticket area without having a ticket or other authority.
Recovery of a penalty fare as a civil debt
8.
The amount of any penalty fare charged in accordance with these Regulations and rules and
not paid within the period specified in rules in accordance with regulation 4(4) may be
recovered from the person charged as a civil debt. 
Relevant statement
9.
(1) Where a person charged a penalty fare has in due time provided the operator by or on
whose behalf the penalty fare was charged with a relevant statement, in any proceedings

38
for the recovery of that penalty fare, it shall be for that operator to show that any of the
facts described in the relevant statement is not true.
(2) A relevant statement is a statement in writing informing the operator in question: 
(a) in the case of a person charged a penalty fare in circumstances where he was travelling
by, present on or leaving a train: 
(i)  of the train and of any preceding train by which he was travelling or had travelled
or on which he was present or had been present;
(ii)  of the station and the time at which he boarded that train and any preceding train
and, other than in the case of his leaving a train at a station, the station at which he
intended to leave that train;
(iii) whether any of the circumstances described in regulation 6(2) arose in relation to
the station at which he boarded the train and any preceding train, and, if so, which;
(b) in the case of a person charged a penalty fare in circumstances where he was present in
or leaving a compulsory ticket area but was not leaving a train: 
(i)  whether he was proposing to travel by train, and if so, by which train and to which
station, and if not so proposing to travel, the reason for his presence in the
compulsory ticket area;
(ii)  whether any of the circumstances described in regulation 7(2) arose in relation to
the station of which the compulsory ticket area formed part and, if so, which.
(3) For  the purpose of paragraph (1) a relevant statement is provided in due time if it is
provided at any time within the period of 21 days commencing with the day on which the
person was charged a penalty fare.
Exclusion of double liability
10.
(1) Where a person has been charged a penalty fare in respect of his failure to produce a ticket
or other authority when required to do so pursuant to regulation 3, and, arising from that
failure, proceedings are brought against that person in respect of any of the offences
specified in paragraph (2), that person shall cease to be liable to pay the penalty fare which
he has been charged, and, if he has paid it, the operator by or on whose behalf the penalty
fare was charged shall be liable to repay to him an amount equal to the amount of that
penalty fare.
(2) The offences mentioned in paragraph (1) are an offence under section 5(3)(a) or (b) of the
Regulation of Railways Act 1889, or an offence under any byelaw made under section 67
of the Transport Act 1962 or section 129 of the Railways Act 1993 in respect of: 
(a) his travelling by, or his presence on, a train without having previously paid his fare, or,
having paid his fare for a certain distance, his travelling beyond that distance without
previously paying the additional fare for the additional distance;
(b) his travelling by, or his presence on, a train without a ticket or other authority entitling
him to travel by or be present on a train;

39
(c) his presence in part of a station without a ticket or other authority authorising him to
be present there.
Power for the Regulator to make rules
11.
(1) Subject to the provisions of these Regulations, the Regulator may make rules to make
provision for and in connection with: 
(a) the imposition of requirements on persons travelling by, being present on or leaving
trains or being present in or leaving compulsory ticket areas to produce a ticket or
other authority authorising them to travel by, or be present on or leave the train in
question or to be present in or leave the compulsory ticket area in question; and
(b) the charging of persons in breach of such requirements to penalty fares;
and, subject to paragraph (2), with respect to any of the matters referred to in subsections
(2) and (4) of section 130.
(2) Nothing in these Regulations shall confer on the Regulator power to make rules to make
provision for or with respect to any matter specified in paragraph (d), (l) and (o) of
subsection (2), or subsection (7), of section 130.
(3) Rules made pursuant to this regulation shall have effect as if they were regulations.
Requirement for a person to give his name and address
12.
(1) A person charged a penalty fare pursuant to regulation 4 shall give his name and address to
the authorised collector when so required.
(2) Any person who fails to give his name and address in accordance with paragraph (1) shall
be guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on
the standard scale.
Signed by authority of the Secretary of State for Transport
Roger Freeman
Minister of State,
Department of Transport
7th March 1994
© Crown Copyright 1994
Important note: As a result of the Transport Act 2000, the Strategic Rail Authority, rather than the
Rail Regulator, now has responsibility for making penalty fares rules. Any reference in these
regulations to the Regulator should be taken to refer to the Strategic Rail Authority.

40
Appendix C*: Wording of Section 130 of the Railways Act 1993
(as amended by the Transport Act 2000) 

130. (1) The Secretary of State may by regulations make provision for and in connection with:-
(a) the imposition of requirements on persons travelling by, present on, or leaving trains
or stations to produce, if required to do so by or in accordance with the regulations, a
ticket or other authority authorising them to travel by, be present on, or leave the train
or station in question; and
(b) the charging of persons in breach of such requirements to financial penalties (in this
section referred to as “penalty fares”) in such circumstances, and subject to
compliance with such conditions (if any), as may be prescribed;
and in this section any reference to a ticket or other authority of any description includes a
reference to any other document which, under the regulations is required to be produced
in conjunction with any such ticket or other authority, for the purpose of demonstrating
that the ticket or other authority produced by a person is valid in his case.
(2) Regulations may make provision for or with respect to:-
(a)  the persons who may be charged penalty fares;
(b) the persons by or on behalf of whom penalty fares may be charged;
(c) the trains and stations by reference to which penalty fares may be charged;
(d) the amount, or the greatest amount, which a person may be charged by way of penalty
fare, whether a specified amount or one determined in a prescribed manner;
(e) the authorising of persons to be collectors;
(f)  the manner in which charges to penalty fares may be imposed by collectors, including
any requirements to be complied with by or in relation to collectors;
(g) the authorising of collectors in prescribed circumstances to require persons on trains
or stations to furnish prescribed information;
(h) the display of prescribed notices in places of a prescribed description;
(j)  the manner in which, and the period within which, any penalty fare charged to a
person is to be paid;
(k) the issue of prescribed documents to persons who are charged, or who have paid,
penalty fares;
(l) the recovery of any unpaid penalty fare as a civil debt, including provision:-
(i) for or with respect to defences that are to be available in proceedings for the
recovery of an unpaid penalty fare; or
(ii) for presumptions of fact to operate, in such proceedings, in favour of the person
*Plain English Campaign’s Crystal Mark does not apply to this appendix

41
charged with the penalty fare, but subject to compliance with prescribed
procedural requirements;
(m)the retention, by persons by or on behalf of whom charges to penalty fares are
imposed, of sums paid by way of penalty fare;
(n) the remission of liability to pay penalty fares and the repayment of sums paid by way
of penalty fare;
(o) the prevention of a person’s being liable both to payment of a penalty fare and to
prosecution for a prescribed offence;
(p) the imposition of prohibitions on the charging of penalty fares by or on behalf of
persons who are suspected by the Secretary of State or the Authority, on reasonable
grounds, of failing to comply with such requirements imposed by or under the
regulations as may be prescribed.
(3) The documents mentioned in subsection (2)(k) above include any document which
consists of or includes:-
(a) notice of the imposition of a charge to a penalty fare;
(b) a receipt for the payment of a penalty fare; or
(c) a ticket or other authority to travel by, be present on, or leave a train or station.
(4) Regulations may impose, or make provision for and in connection with the imposition or
enforcement of, prescribed requirements in prescribed circumstances on or against a holder
of a passenger licence or station licence or a passenger service operator (whether or not one
by or on behalf of whom penalty fares are to be charged); and, without prejudice to the
generality of the foregoing, any such regulations may make provision with respect to:-
(a) the display of notices relating to penalty fares;
(b) the provision of facilities for the issue of tickets or other authorities to travel by, be
present on, or leave trains or stations;
(c) the provision of information to prescribed persons or persons of a prescribed class or
description.
(5) The functions which may be conferred on the Authority by regulations include:-
(a) functions which involve the exercise by him of judgement or a discretion; and
(b) functions which empower him in prescribed circumstances to impose such conditions
or requirements as he may think fit on prescribed persons or on persons of a
prescribed class or description.
(6) Regulations may confer power on the Authority to make by rules any provision which
could be made by the Secretary of State by regulations, other than provision for or with
respect to any matter specified in:-

42
(a) paragraph (d), (l) or (o) of subsection (2) above; or
(b) subsection (7) below;
and any such rules shall have effect, to such extent as may be prescribed, as if they were
regulations.
(7) Regulations may provide that where information is required to be furnished pursuant to
the regulations:-
(a) a refusal to furnish any such information, or
(b) the furnishing of information which is false in a material particular,
shall, in prescribed circumstances, be an offence punishable on summary conviction by a
fine not exceeding level 2 on the standard scale.
(8) Apart from subsection (7) above, nothing in this section creates, or authorises the
creation of, any offence.
(9) Regulations may make provision for any area within Great Britain and may make different
provision for or in relation to different areas.
(10) Any power of the Authority to make rules under or by virtue of this section includes
power to revoke, amend or re-enact any rules so made; and:-
(a) any such rules may make different provision for different cases; and
(b) without prejudice to paragraph (a) above, subsection (9) above shall apply in relation
to any such rules as it applies in relation to regulations.
(11) Subsections (2) to (5) above are without prejudice to the generality of subsection (1)
above.
(12) In this section:-
“collectors” means the individuals who perform the function (whether as servants or
agents or otherwise) of imposing the charge of a penalty fare on the person liable to pay it
under the regulations in each particular case;
“document”, without prejudice to the generality of the expression, includes any badge,
token, or photograph or any other form of identification, certification or authentication;
“prescribed” means specified in, or determined in accordance with, regulations;
“regulations” means regulations under subsection (1) above;
“station” includes a reference to a part of a station;
“ticket or other authority” shall be construed in accordance with subsection (1) above;
“train” includes a reference to part of a train;
and, subject to that, expressions used in Part I above and in this section have the same
meaning in this section as they have in that Part.

43
Appendix D: Penalty fares scheme template 
We recommend that train operators use this template for their penalty fares scheme. You should
change the wording as necessary, and should add more information if it is relevant. You should delete
anything marked with a ‘*’ if it does not apply to your scheme. We cannot guarantee that we will
approve a scheme if you use this template, or that we will not need any more information, as we will
assess each scheme individually in line with the policy set out in our policy document. Please make
sure that each page of your scheme is numbered and shows your company name and the date of
issue. We can provide an electronic version of this template (in Microsoft ‘Word’) if this would help.
Penalty fares scheme – [Name of operator]
1
Introduction
1.1
We, [name of operator], give notice, under rule 3.2 of the SRA’s Penalty Fares Rules 2002, that
we want to introduce a penalty fares scheme with effect from [proposed date 
of introduction]. This document describes our penalty fares scheme for the purposes of rule
3.2 b. 
1.2
We have decided to introduce a penalty fares scheme in this area because 
[paragraphs explaining the reasons for introducing a penalty fares scheme, the expected
benefits, the difficulties of using other methods of revenue protection, and so on]
1.3
We have prepared this scheme taking account of the following documents.
• The Railways (Penalty Fares) Regulations 1994. 
• The Penalty Fares Rules 2002.
• Strategic Rail Authority Penalty Fares Policy 2002.
1.4
In line with rule 3.2, we have sent copies of this scheme to:
• The Strategic Rail Authority;
• [list of relevant PTEs]; and
• [list of relevant RPCs]
2
Penalty fares trains
2.1
For the purposes of this scheme, all the trains that we operate *on the following routes /
*within the area bounded by the following stations will be penalty fares trains.
[List of boundary stations or routes]
A map showing the routes on which the penalty fares trains run is attached as appendix A.

44
3
Penalty fares stations
3.1
For the purposes of this scheme, the following stations will be penalty fares stations.
[List of penalty fares stations]
A map showing where these penalty fares stations are is attached as appendix A.
3.2
These stations include all of the stations served by penalty fares trains, *except for the
following.
[List of stations that are served by 
[Reason why in each case.]
penalty fares trains, but which will not
become penalty fares stations.]
4
Compulsory ticket areas (CTAs)
4.1
*The scheme will not create any compulsory ticket areas. / *The scheme will create the
following compulsory ticket areas, which will be clearly marked.
Station
Part of station covered by CTA
Reason for CTA
[Name of station]
[For example, ‘all platforms 
[For example, ‘this is a major 
and footbridge’]
station where all passengers 
must have a ticket to enter the 
platforms to make a barrier 
check practical’ or ‘ticket 
gates installed’]
*All the operators serving these stations have a penalty fares scheme.
4.2
*At each station where there is a CTA, platform tickets will be sold by the ticket office for a
small fee to people who want to enter the CTA but who do not want to travel. This will
include people who are seeing passengers off, helping passengers or meeting passengers.
People who are helping passengers with disabilities will not be charged to enter the CTA.
*The ticket office is open at all times when trains are running./ *Ticket machines will sell
platform tickets at times when the ticket office is closed./ *Platform tickets will not be needed
to enter the CTA when the ticket office is closed, and the warning signs will say this.
5
Ticket facilities
5.1
The ticket facilities provided at each penalty fares station are set out in appendix B. A second
way of buying tickets is provided in the form of a ‘permit to travel’ machine or ticket machine
at each staffed station *except:

45
[Names of stations]
This is because 
[reason and details of alternative arrangements].
5.2
The ticket facilities at each penalty fares station are sufficient to meet the Ticketing and
Settlement Agreement and Passenger’s Charter queuing standards under normal
circumstances at all times of day, *except for:
[Names of stations]
We will do the following *to sort out this problem / *to make sure that passengers are not
charged penalty fares when the queuing standards are not met.
[Description of action to be taken.]
5.3
At staffed stations, staff will check ticket and ‘permit to travel’ machines every day that the
station is staffed. Staff will be trained to put faults right themselves wherever possible,
otherwise our maintenance contractors will repair any faults. Under our maintenance
contract, machine faults will normally be put right within [24 hours]. 
5.4
At unstaffed stations,
[details of how machines at unstaffed stations will be checked and faults put right].
5.5
At staffed stations, ‘permit to travel’ machines will normally be switched off when the ticket
office is open, but will be switched on by the ticket office staff when the ticket office closes.
Ticket office staff will be given instructions to switch on any ‘permit to travel’ machine
whenever unusually long queues build up at the ticket office.
6
Publicity and warning notices
6.1
In line with rule 3, notices telling passengers that we are going to introduce a penalty fares
scheme will be displayed where they can be seen clearly at each penalty fares station for at least
three weeks before the date on which the scheme comes into force. The wording of the
notices is shown in appendix C.
6.2
As well as these notices, we will do the following to make sure that the introduction of the
scheme is well publicised.
[Paragraphs describing what will be done – for example, posters, announcements on trains
and at stations, newspaper, radio and television adverts and so on. The paragraphs must give
the timescales, and the wording of any notices, adverts, and so on, should be attached.] 
6.3
Before the scheme is introduced, we will brief ticket office staff, platform staff, customer
services staff and traincrew about how the penalty fares scheme will work. We will keep a
record of this briefing.
6.4
We will produce leaflets which will explain how the scheme works and which will include a
map showing the penalty fares stations and the routes on which penalty fares trains run. These
leaflets will be available, free of charge, at all staffed penalty fares stations from at least three

46
weeks before the scheme is introduced. We will do all we reasonably can to make sure that
copies of the leaflet are available at each staffed penalty fares station and from our [customer
services department] for as long as the scheme remains in force. We will give a copy of this
leaflet and a copy of the SRA’s Penalty Fares Rules to each person who asks for information
about the scheme under rule 8. The wording of the leaflet is attached as appendix D. Our
customer services department will send a large-print or audio-tape version of the leaflet to
anyone who asks.
6.5
Penalty fares warning notices will be displayed in line with rule 4, at each penalty fares station
and at each entrance to each CTA, from the date the scheme is introduced and for as long as
the scheme remains in force. These notices will take the form of *metal signs / *posters in
special poster sites, displayed at each entrance to the platforms and on the platforms at
interchange stations where they can be seen by any passenger changing onto a penalty fares
train. The wording and design of these warnings is shown in appendix E. The signs will follow
the signing guidelines contained in the code of practice on penalty fares produced by the
Association of Train Operating Companies. We will check that these warning notices are
properly displayed at each station which we operate every four weeks as part of our regular
station audit process. [Give details of how regular checks will be carried out at stations run by
other operators.]
6.6
*We will also provide penalty fares warning notices on board penalty fares trains. The wording
of these warnings is shown in appendix E.
6.7
*We will use the electronic customer information systems to display a penalty fares warning at
the following stations. 
[List of stations]
The warning will include the words ‘Please buy your ticket before travelling as penalty fares
apply to this train’ at the bottom of the ‘next train’ information display for each penalty fares
train.
7
Selecting and training authorised collectors
7.1
[Paragraph explaining the selection process, for example, the interview process, person
specifications and the type of assessments used.]
7.2
We will train each person who is to be an authorised collector to make sure that they do this
job properly. The training will include:
• product training, including ticket types and restrictions, excess fares and railcards; 
• National Rail Conditions of Carriage;
• railway bye-laws;
• Penalty Fares Rules and the Regulations;
• details of this scheme, including how authorised collectors should use their discretion;
• customer service; and

47
• how to avoid conflict.
This training will be carried out by 
[name of internal or external organisation who will provide the training] 
and will be given to 
[training standard, for example, City and Guilds or NVQ].
We will keep appropriate records of this training.
7.3
After the training, we will assess trainees’ knowledge and ability. We will only appoint
someone as an authorised collector, and give that person identification as an authorised
collector, if that person shows a satisfactory knowledge of the subjects listed above.
7.4
We will give refresher training to each authorised collector every [12] months. The refresher
training will cover the same subjects as the initial training, and an assessment will be carried
out afterwards. If an authorised collector fails to reach a satisfactory standard in the
assessment, we will not allow them to continue as an authorised collector until they
successfully pass an assessment after more training. We will keep appropriate records of this
refresher training.
7.5
We will fully investigate all complaints about authorised collectors or how this penalty fares
scheme is run, and we will take any action which is necessary as a result. We will keep records
of the investigation and the action which we take. If appropriate, we will remove an authorised
collector from duty and withdraw their authorised collector’s identification, until they have
been given extra training and re-assessed as being satisfactory.
7.6
Each authorised collector will be given a routine briefing by his or her supervisor or manager
every [four] weeks, covering relevant issues concerning safety, customer service, product
changes and revenue protection.
7.7
We will use a combination of induction training and briefing to make sure that other staff,
including ticket office staff, platform staff, customer services staff and traincrew, know how
the penalty fares scheme works. We will keep appropriate records of this training or briefing.
8
Written instructions to authorised collectors
8.1
Authorised collectors will wear a distinctive uniform that clearly shows that they work for us.
In line with rule 5, they will carry identification and produce it when charging a penalty fare or
when asked by a passenger. This identification will include the authorised collector’s
photograph and will show that they are authorised to collect penalty fares on our behalf and
on behalf of any other operators who have authorised them to collect penalty fares. We will
not allow authorised collectors to collect penalty fares if they do not have this identification
with them. The design of this identification will be in line with the code of practice on penalty
fares produced by the Association of Train Operating Companies, and an example is shown in
appendix F. 
8.2
When they charge a penalty fare, authorised collectors will follow rule 8 by issuing a penalty
fare notice. The wording and layout of this notice is shown in appendix G. 

48
8.3
We will provide each authorised collector with written instructions in the form of a [revenue
protection handbook]. A copy of these instructions is enclosed. The instructions will include
details of the penalty fares trains and penalty fares stations under this scheme, the opening
hours and contact phone numbers for the ticket-office at each penalty fares station and the
[retail control centre]. It will include details of the arrangements made in connection with
other operators’ trains, passengers and penalty fares schemes. We will issue replacement pages
to authorised collectors to keep their handbooks up to date whenever we make any changes.
8.4
The instructions will clearly set out where passengers are, and are not, to be charged a penalty
fare, including the procedures for:
• passengers who have changed onto a penalty fares train from another train;
• passengers who have tickets which are not valid only because of a ticket restriction;
• passengers who have a ticket for their journey, but who are travelling by a route for which
that ticket is not valid; 
• passengers who have standard class tickets who are travelling in first class; and
• season-ticket holders who do not have their season-ticket with them.
8.5
Authorised collectors will be given the discretion not to charge a penalty fare, and either
charge the full single fare in line with National Rail Conditions of Carriage or charge any
relevant discounted fare as appropriate under the circumstances. The instructions will set out
clear guidelines for using this discretion, which will be used towards:
• passengers who have mobility problems and passengers who are frail, elderly or heavily
pregnant, who may not be able to get to the ticket office easily at the station where they got
on the train or stand in a queue for a long time; 
• passengers who are not aware of the scheme because they are blind or partially sighted, are
foreign visitors who live abroad, do not speak English very well, or have learning difficulties; 
• passengers who are travelling from stations where the only available ticket facilities are
ticket machines or a ‘permit to travel’ machine, who have enough money (or credit or debit
cards) to buy a ticket, but not the correct coins or notes needed to use the ticket or ‘permit
to travel’ machine;
• passengers travelling from stations where the only available ticket facilities are ticket
machines, who claim that the machines were accepting coins only or the exact fare only and
the passenger did not have the necessary coins (unless the authorised collector can confirm
that the machines are in fact working normally); 
• passengers who are travelling from a station where the authorised collector has been told
about long ticket office queues, or where fewer ticket windows than normal are open; and
• all passengers when the train service is severely disrupted.
8.6
The instructions will set out procedures to make sure that people at risk, including children,
people who are frail, elderly or heavily pregnant, and other vulnerable passengers, are not put
at greater risk by charging them a penalty fare, especially late at night. 

49
8.7
The instructions will remind authorised collectors that although they may require passengers
to make a minimum payment in line with rule 8.2, passengers who are charged a penalty fare
have 21 days in which to pay the rest. Authorised collectors will be given the discretion not to
charge this minimum payment but to give passengers 21 days in which to pay the full amount
of the penalty fare.
8.8
If a barrier check is to be carried out at a station without a CTA, authorised collectors will
make sure:
• that they are in a position where they can see that a person approaching the barrier has got
off a train; or
• that they carry out a thorough search of the platform area before the check starts, to make
sure that there is no-one on the platform side of the barrier check who is not travelling. 
8.9
Authorised collectors *will not be paid commission / *will be paid commission of [5%] of the
value of tickets they sell and [5%] of the value of the penalty fares which they charge.
8.10 We reserve the right to prosecute passengers if we think they intended to avoid paying their
fare. In these circumstances, we will not charge them a penalty fare or, if they have already
been charged a penalty fare, we will refund it. 
9
Checking that ticket facilities are available and warning
notices displayed

9.1
We *will/have set up a [retail control centre] at [location]. This will be open from [opening
hours on Mondays to Fridays, Saturdays and Sundays]. Ticket office staff at each penalty fares
station which we operate will tell the centre:
• if their ticket office closes temporarily (and when it reopens);
• if their ticket office closes before its advertised time;
• when very long queues build up (and when queuing levels return to normal);
• when ticket or ‘permit to travel’ machines break down, or only accept coins or the exact
fare; and
• when these ticket or ‘permit to travel’ machines are working properly again.
9.2
At unstaffed stations, 
[details of how you will confirm whether machines at unstaffed stations are working
properly].
9.3
[Details of how information on ticket facilities will be provided by, and received from, penalty
fares stations that are run by other operators.]
9.4
The control centre will keep an appropriate record of the information they have received, and
will give this to IPFAS as necessary so that they can investigate appeals. 

50
9.5
We will give each authorised collector a message pager, and the [retail control centre] will send
details of ticket office closures, very long ticket queues and faulty ticket or ‘permit to travel’
machines to every authorised collector. We will give each authorised collector a mobile phone
so they can confirm whether ticket offices are open and whether ticket and ‘permit to travel’
machines are working properly, with the control centre or with the station staff. 
10 Selling tickets on board trains
10.1 [Option 1] We do not intend to train conductors, guards or other on-train staff to be
authorised collectors. However, staff who are not trained as authorised collectors will not be
allowed to sell tickets on board penalty fares trains unless they are accompanied by an
authorised collector.
10.1 [Option 2] On-train staff will be trained to be authorised collectors. Any staff who are not
trained as authorised collectors will not be allowed to sell tickets on board penalty fares trains
unless they are accompanied by an authorised collector.
10.1 [Option 3] We do not intend to train conductors, guards or other on-train staff to be
authorised collectors. On-train staff will check and sell tickets on board penalty fares trains,
but will provide a written penalty fares warning to any passenger who is liable to a penalty fare
and will draw the passenger’s attention to that warning. The wording of the written warning is
as follows.
[Wording of penalty fares warnings.] 
[Description of how the penalty fares warnings will be issued.] 
[Description of the training and refresher training which on-train staff will receive on how the
penalty fares scheme works and how to issue penalty fares warnings.]
[Description of how staff will be monitored to make sure that each member of on-train staff
issues penalty fares warnings correctly. Monitoring must be recorded and able to be audited.]
11 Arrangements with other operators
The following table identifies each penalty fares station which is served by trains of other
operators, and sets out the arrangements which we will make with other operators.
Station
Is there 
Also served by 
Does this
Arrangements
a CTA?
trains operated by:
operator have
that will apply
a penalty fares
scheme?
[Name of station]
[Yes or no]
[Name of each 
[Yes or no]
[A, B, C, D, E  
other operator 
and/or F]
whose trains serve 
this station]

51
A – Passengers getting off this operator’s trains will not be charged penalty fares, but will be
dealt with in line with the current National Rail Conditions of Carriage. It is possible to see
who has got off this operator’s trains from the place where checks are carried out.
B – Passengers joining or getting off this operator’s trains will not be charged penalty fares.
The trains of this operator use separate platforms, and ticket checks will only affect
passengers on trains to which penalty fares apply. 
C – Passengers joining or getting off this operator’s trains will not be charged penalty fares.
The CTA does not cover the platforms used by this operator. 
D – Passengers who say they have got off this operator’s trains (at or around the times when
this operator’s trains arrive) will not be charged a penalty fare. Only a few trains run by this
operator serve this station on any given day.
E – Penalty fares will be charged to passengers getting off this operator’s trains under the
terms of that operator’s scheme, as long as the authorised collector has been individually
authorised to collect penalty fares on behalf of this operator. These authorised collectors will
be trained in the details of the other operator’s scheme, including the relevant discretion
guidelines and how to confirm what ticket facilities are available at the penalty fares stations of
the other operator. The identification carried by each authorised collector in line with rule 5
will show the names of the operators who he or she is authorised to collect penalty fares for.
F – We will authorise this operator’s authorised collectors to charge penalty fares under this
scheme on our behalf. These authorised collectors will be given details of this scheme,
including the discretion guidelines and details of how to contact the [retail control centre]. 
12 Appeals
12.1 All appeals against a penalty fare charged under this scheme will be handled by the
Independent Penalty Fares Appeal Service (IPFAS). In line with the SRA’s Penalty Fares
Rules, every passenger charged a penalty fare under this scheme will be made aware of their
right to appeal. IPFAS’ address will be shown on the penalty fare notice, together with details
of how to make an appeal. 
12.2 IPFAS will decide appeals in line with the code of practice approved by the Regulator on 
23 December 1997, as amended with the SRA’s approval from time to time. IPFAS will send
passengers a copy of this code of practice if they ask. 
12.3 We will give IPFAS details of this scheme, including details of ticket facilities and ticket office
opening hours, the instructions given to authorised collectors and guidelines for using
discretion. We will tell IPFAS about any changes to this information promptly. We will give
IPFAS the necessary contact details for the [retail control centre], relevant revenue
protection managers and ticket offices so that they can investigate appeals. We will pay IPFAS
a set fee for each appeal, whether or not the appeal is accepted.

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Appendices [which need to be attached to your scheme]
Appendix A
Map showing penalty fares trains and penalty fares stations
Appendix B
Summary of the ticket facilities available at penalty fares stations (example below)
Appendix C
Wording of the notices telling passengers that a penalty fares scheme will 
be introduced, which will be displayed in line with rule 3.4
Appendix D
Wording of the leaflet explaining the penalty fares scheme
Appendix E
Wording and design of the penalty fares warning notices which will be 
displayed at every penalty fares station in line with rule 4
Appendix F
Wording and design of the identification for authorised collectors
Appendix G
Wording and layout of the penalty fare receipts and notices (rule 8)
Appendix B: Ticket facilities at penalty fares stations
Station
Operator
Ticket office opening hours
‘Permit to
Ticket 
travel’
machines
machines
(location 
Monday to Friday
Saturday
Sunday
and type)
[name of station]
[station operator] [For example 
[For example
[For example
[number]
[For example, 
06:10-21:40]
06:10-21:40]
06:10-21:40]
1 x Quickfare 
platform 1, 
1 x Quickfare 
platform 2]
Key
‘Permit to travel’ machines (PERTIS): A machine which issues a ‘permit to travel’ giving the time,
date and station when a passenger puts in any amount from 5p up to the fare to be paid. The permit
must be exchanged for a ticket within two hours either on the train or at the destination or
interchange station. The amount paid will be taken off the price charged for the ticket. ‘Permit to
travel’ machines will be switched on by the ticket office staff when the ticket office closes.
Types of ticket machine: ‘Quickfare’ – A ticket machine which sells a wide range of ticket types, to a
wide range of destinations, and which accepts only coins and notes. ‘Queuebuster’ – A ticket
machine which sells a wide range of tickets to a limited range of destinations, and which accepts only
debit and credit cards. Machines that are placed in ticket halls and so can only be used when the ticket
office is open are marked with a ‘*’. 
Important: The number of ticket and PERTIS machines, and the ticket office opening hours shown
above, are a minimum. We have the right to open the ticket office earlier or close it later, provide
more ticket or PERTIS machines, or provide machines of a different type which offer the same or
greater range of destinations, ticket types and methods of payment.