The Department for Transport (DfT) has formally announced that South Western Railway (SWR) services will transfer into public ownership from Sunday, 25 May 2025. The announcement was made by Heidi Alexander MP in a written statement to the House of Commons on 22 May 2025.
This change represents the first application of the Passenger Railways Services (Public Ownership) Act 2024, passed by Parliament in November last year. The transition will see South Western Railway services operated by a new public sector entity, South Western Railway Limited. Initially, this organisation will operate as a subsidiary of DfT Operator Limited (DfTO), the government’s public sector train operating holding company.
DfTO is expected to become part of Great British Railways (GBR) following its formal establishment. GBR is intended to act as the single, integrated public body responsible for both infrastructure and operations across the national railway network.
Following the SWR transfer, c2c is scheduled to move into public ownership on 20 July 2025. In addition, Greater Anglia services will follow suit on 12 October 2025, in line with a previously issued expiry notice terminating their existing contract with the DfT.
The government describes these moves as a pivotal step in its broader reform agenda to unify track and train under one organisation and address longstanding fragmentation within the rail sector. While public ownership is presented as a measure to ensure services operate in the interest of passengers rather than private shareholders, the DfT notes that it is not a comprehensive solution to current structural challenges facing the railways.
The proposed Railways Bill, introduced in a recent consultation, outlines the framework for establishing GBR. Once legislated, GBR will consolidate the functions of the 14 existing train operating companies, Network Rail, and DfTO into a single body. Subject to the passage of this legislation in the current Parliamentary session, GBR is expected to become operational approximately one year after receiving Royal Assent.
Industry observers will be watching the implementation of these changes closely, particularly regarding service continuity, operational efficiency, and long-term strategic planning under the new public sector-led structure.
