■ Last decade’s headcount growth reversed
■ Redundancies to follow VSS
■ More savings from GBR efficiencies
Network Rail’s staff wage bill in 2020-21 was £2.7 billion. Compared with the parsimonious train operating companies (TOCs), this was an increase of 5.8% year-on-year, reflecting a 6.9% increase in the numbers employed to 44,523.
Since the industry Voluntary Severance Scheme (VSS) was announced, Network Rail received around 2,200 applications, with some 1,200 accepted. This is equivalent to an annual saving of around £75 million. Redundancies will now be necessary.
According to Chief Executive Andrew Haines, Network Rail’s headcount has increased by 1,000 a year over the previous 10 years. Some of this was necessary, following the austerity imposed as Network Rail brought Railtrack out of administration and finances had to be brought under control. The aim now is to get management grade employment back to the 2017 headcount.
OTHER SAVINGS
Network Rail is not going to meet the 10% edict with a return to 2017 management staff levels. Indeed, there is already anecdotal evidence that in some cases cuts may be counterproductive.
Network Rail’s use of consultants in place of permanent staff has been a re…
