Our efficiency and finance assessment of Network Rail for 2021-22 relates to the third year of control period 6 (CP6), which runs from 1 April 2019 to 31 March 2024.
By reporting on Network Rail’s efficiency and wider financial performance over time, we give assurance to rail users and funders that Network Rail is delivering what is expected and at the same time, we provide a strong reputational incentive on Network Rail to become more efficient.
Our annual assessments are intended to help customers, funders and other interested parties gain a better understanding of Network Rail's efficiency and financial performance compared with the CP6 financial assumptions that we set out in our 2018 periodic review (PR18) final determination.
Annual efficiency and finance assessment of Network Rail 2021-22
Our assessment provides a yearly snapshot based on the best available information and presents financial data on Great Britain, England and Wales, and Network Rail’s five regions: Scotland, Southern, Wales and Western, Eastern, and North West and Central.
It contains reported figures and commentary on Network Rail's income and expenditure and its efficiency compared to our PR18 determination.
2022 report highlights
- Network Rail has reported £840 million of efficiency improvements for the year, ahead of its £830 million delivery plan. It has delivered over £1.9 billion of efficiency improvements across the first three years of control period 6 and is aiming to deliver £4.0 billion of efficiency improvements across control period 6.
- However, wider financial performance has missed its target. Network Rail financially underperformed by £487 million in 2021-22 and cumulatively by £891 million across the first three years of control period 6. We examine the reasons for this in our report.
- Control period 6 efficiency plans are progressing well though financial risks will need to be carefully managed.
- Staff costs remain high, with pay and conditions typically favourable in the rail industry. Alongside this report, we are publishing a review of benchmarking review of employment costs in the rail industry.
Previous annual efficiency and finance assessments Collapse accordion Open accordion
Older annual efficiency and finance assessments are available on the National Archives.