Train companies were paid £107 million in compensation last year for delays, but passed on just £26 million to passengers.
Network Rail has to compensate rail operators for delays caused by issues like points failures and landslips.
But figures obtained by the Sunday People suggest rail firms are pocketing a massive £81 million, as many passengers aren’t claiming what they are due.
Why people aren't claiming
Last year 47 million rail passenger journeys were cancelled or delayed by more than 30 minutes, yet only one third of passengers claimed the compensation they were entitled to, according to campaign group Which?
The process of claiming compensation for a delayed or cancelled train differs between operators and can be long winded and complicated.
However, following a super complaint lodged by Which? in December, the industry regulator has called on train companies to make it clearer.
The Office of Rail and Road (ORR) said there needs to better information and stronger monitoring of standards, after its own research showed 80% of passengers do not claim
It recommended launching a national campaign to raise awareness of what pay-outs are available following a disruption. It also stressed that compensation forms and website information need to be written in plain English to make claiming simpler.
Staff should also be given better training to help provide information to passengers, while a review should be held to ensure compensation is being promoted at the time of a delay or cancellation.
Which? executive director Richard Lloyd said: “The pressure is now on the train companies to show they can bring about urgently needed basic improvements for their customers. And, where breaches of consumer law and licence conditions have been found, the ORR must take enforcement action without delay."
A simpler solution
But there are calls for automatic refunds to make the whole process simpler.
Currently just a couple of train firms offer this.
C2C travellers that use a Smartcard now automatically get compensation whenever a delay of more than two minutes is experienced on their journey, while Virgin Trains automatically pays out for delays of 30 minutes or more to advance ticket holders.
What compensation is available?
The compensation available for delays and cancellations on one-off journeys varies between train operators.
In general, most delays over 30 minutes warrant some form of compensation, which is typically paid in the form of National Rail vouchers. These can be used with any company and last a year.
For season ticket holders, compensation also varies according to your train operator.
Some use a ‘Delay Repay’ scheme where you can claim back compensation within 28 days of the delay or cancellation and you get a pro-rata refund based on the value of your season ticket.
Others may give you a discount when you come to renew your season ticket. This is based on the overall performance of the train company and the percentage of trains that were on time.
How to claim compensation
If you’ve been delayed on your train journey you should act fast. Most firms have a 28-day time limit to claim.
Check the rail provider’s policy on compensation for delays and cancellations to find what you need to do to make your claim. Each train firm’s compensation levels are set out in their passenger charter.
You may need to send evidence by post, so don’t throw your tickets or receipts away and make copies if you have a season ticket.
For more read Train delays and cancellations: how to claim refunds and compensation.
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