Funding

ORR is funded through a combination of licence fees and a railway safety levy. Economic regulation activities are funded through the licence fee and health and safety activities through the safety levy.

Licence fees

A standard condition in most operator licences requires the licence holder to pay an annual fee to ORR, but currently only Network Rail pays this fee.

Safety levy

Railway service providers are required to pay a levy to cover the costs of our activities as the health and safety regulator and enforcement body for the railway industry.

The levy is based on relevant turnover. Those railway service providers with a relevant turnover below £1 million are not liable to pay the levy, and those railway service providers with a relevant turnover between £1 million and £5 million are liable only to pay a flat rate fee currently set at £1,000. Those railway service providers with a relevant turnover between £5 million and £10 million are liable only to pay a flat rate fee currently set at £5,000.  

For more details, please read our full guidance on safety levies.

Last updated: 10 August 2010

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