Transport minister Simon Lightwood has said the Government is exploring the option of a pay review body for public sector rail workers, as MPs debated the nationalisation of train operations.
It comes after the new Labour Government made a multi-year pay offer to train drivers in a bid to resolve long-running pay disputes and end strikes.
Mr Lightwood also committed to reviewing the “overly complicated fare system” and the introduction of a new passenger watchdog, during the committee stage of the Passenger Railway Services (Public Ownership) Bill.
The Tories tabled an amendment calling for the establishment of an independent pay review process, but this was defeated by 372 votes to 113, majority 259.
Before the vote, shadow transport secretary Helen Whately said the amendment aimed to “take the politics out of pay” and be in line with arrangements for teachers, nurses and the armed forces.
On Tuesday, Transport Secretary Louise Haigh also announced the Shadow Great British Railways (Shadow GBR), which will start industry collaboration ahead of the formation of GBR, which will require legislation.
She said the shadow body “marks a significant step towards delivering a unified railway with passengers at its heart by bringing together track and train, and, by progressing the Passenger Railways Services Bill, we’re one step closer to public ownership which will help put our railways back on track”.
Speaking in the Commons, Mr Lightwood said: “This is an important issue, and one the Government is determined to get right. My officials are at the early stages of exploring a number of options including a pay review body so that we can consider the most appropriate approach to meet the needs of a transformed industry.”
He added: “We are committed to reviewing the overly complicated fare system, change is already being delivered by extending pay as you go in the South East, and through fares reform on LNER.
“We will explore the options for expanding ticketing innovations, like digital pay as you go and digital season tickets across the network, and we will hold operators – and in due course, Great British Railways – accountable for progress on these vital reforms.
“We also intend that a powerful new passenger watchdog, the Passenger Standards Authority, will independently monitor standards and champion improvement in service performance against a range of measures.”
The Bill cleared the House of Commons on Tuesday and will go to the House of Lords for further examination.
During the debate, Ms Whately accused the Government of rushing through the Bill to appease Labour backbenchers or rail unions.
She said: “The independent body I’m proposing would look at pay and terms and conditions in the round. They could shed some light on who is getting a fair deal, and help put modernisation at the top of the agenda in negotiations.
“The Government is being driven by a flawed ideological belief along the lines of ‘public sector good, private sector bad’. It is not underpinned by evidence of what works.
“They’re not being straight with people about the possible downsides, like higher fares for passengers, higher costs for taxpayers, and less reliable trains.
“They’re rushing this Bill through for why? Is it to please their backbenchers, who we know are deeply unhappy about scrapping the winter fuel allowance, or is it to please their union paymasters?
“I know (Transport Secretary Louise Haigh) has promised everyone that she is going to move fast and fix things, but this looks more like moving fast and breaking things.”