London St. Pancras Highspeed unveils incentive scheme to boost international rail services and connectivity

Credit: London St. Pancras Highspeed

London St. Pancras Highspeed (the new trading name of HS1 Ltd) has unveiled an ambitious International Growth Incentive Scheme aimed at boosting international rail travel from London to Europe. The scheme offers significant financial incentives for train operators to increase services, expand destinations, and deploy new rolling stock on the UK’s only high-speed railway.

Details on London St. Pancras Highspeed incentive scheme

The scheme, which will begin on 30 May 2025, will offer discounts on the Investment Recovery Charge (IRC), which is paid by operators to run services on the line. Operators can receive discounts of up to 50% in year one, 40% in year two, and 30% in year three. Additionally, the scheme includes a Passenger Incentive, offering a £1 rebate for every additional passenger carried above previous levels, paid into a joint fund to support marketing and growth activities.

Currently, the high-speed line running from London St. Pancras to Folkestone, which connects to the Channel Tunnel, operates at 50% capacity. With this scheme, London St. Pancras Highspeed aims to maximise international services, offer more destinations, reduce fares, and encourage sustainable tourism, providing a boost to the UK economy.

Robert Sinclair, CEO of London St. Pancras Highspeed, described the initiative as a “groundbreaking proposal” designed to encourage operators to expand their services and invest in new rolling stock. He added, “Our ambition is to make rail the preferred mode of travel to Europe, and we know that high-speed rail can reduce carbon emissions by up to 96% compared with flying.”

The International Growth Incentive Scheme is available to all international high-speed passenger service operators using or proposing to use the high-speed line. It consists of two components: the New Services Incentive, which provides discounts for new services, new destinations, and intermediate stations, and the Passenger Incentive, which rewards operators for increasing passenger volumes.

The proposed scheme follows a Memorandum of Understanding between London St. Pancras Highspeed and Eurotunnel to collaborate on reducing journey times, improving timetable coordination, and incentivising more trains and new routes. The consultation for the scheme has been launched today, with the consultation period running until 7 May 2025.

St. Pancras station’s international passenger capacity is set to more than double, accommodating up to 5,000 passengers per hour over the next decade and beyond. The increased capacity aims to meet the growing public demand for international rail travel. A recent survey found that 60% of Londoners support banning short-haul flights where high-speed rail alternatives exist.

London St. Pancras Highspeed operates the UK’s only international high-speed rail link, connecting London to Paris, Brussels, and Amsterdam. It contributes £427 million in economic benefits annually to the UK and continental Europe, with cumulative benefits of £4.5 billion since the company was granted the concession. The high-speed rail service has also helped reduce annual emissions equivalent to 60,000 short-haul flights.

As part of its Five Year Asset Management Plan, from 1 April 2025, London St. Pancras Highspeed will reduce charges to operate on the high-speed line by 20% and station renewal charges by 30%, separate from the incentive scheme.

The International Growth Incentive Scheme is set to run until 31 March 2035, subject to the consultation process and Office of Rail and Road (ORR) approval. The scheme is expected to generate £40 million to £60 million in incentives over three years.

About London St. Pancras Highspeed

London St. Pancras Highspeed owns and operates the UK’s only international high-speed rail link, connecting London to Paris, Brussels, and Amsterdam. It operates four stations: St. Pancras International, Stratford International, Ebbsfleet International, and Ashford International. The company has contributed significant economic and environmental benefits, including reducing carbon emissions equivalent to 60,000 short-haul flights per year.