Exclusive: Serco took £180k of taxpayer money because Queen’s death delayed Santander e-bike launch

The contract to run the Santander cycle hire scheme is worth £50 million - but that didn’t stop Serco accepting a £180k delay penalty from the taxpayer.
Procurement giant Serco was paid almost £180,000 by TfL when the Queen’s death delayed an electric bike project (Image: NationalWorld/Kim Mogg)Procurement giant Serco was paid almost £180,000 by TfL when the Queen’s death delayed an electric bike project (Image: NationalWorld/Kim Mogg)
Procurement giant Serco was paid almost £180,000 by TfL when the Queen’s death delayed an electric bike project (Image: NationalWorld/Kim Mogg)

Serco took an extra £180,000 of taxpayer money as a late fee on a £50 million contract to run London’s Santander bike hire scheme – because the Queen’s death delayed its e-bike launch by three weeks.

The capital’s transport watchdog London Travel Watch said it would raise the matter with Transport for London (TfL), after a Freedom of Information request by NationalWorld revealed the multi-billion pound company had received a payment of £178,400 to cover “additional costs [...] due to the delayed launch of e-bikes”.

Hide Ad
Hide Ad

It was one of almost £9 million worth of costs TfL told NationalWorld it had incurred as a result of the Queen’s funeral and wider national mourning period last year. London Travel Watch suggested Serco should consider donating the money to a charity patronised by the late Queen – although added it was not “really our place to call for as they are a private company”.

Serco – a multinational that specialises in procuring contracts to deliver public services – recently confirmed it had agreed a three-year extension of its contract with TfL to run the cycle hire scheme, a role that involves providing and maintaining docks and bikes and running an operations centre to manage the daily availability of bikes. The extension is valued at £50 million, according to a Serco press release, with the previous five-year contract valued at £80 million, according to publicly available information on government contracts.

A fleet of 500 electric bikes was recently added to the scheme, with a launch originally set for 12 September last year. Following the Queen’s death on 8 September and 10-day national mourning period, the launch was pushed back to 6 October – 24 days later than planned. That means Serco received £7,400 for every day that the launch was delayed.

TfL told NationalWorld that it had decided to pause the introduction of e-bikes while it focused on preparing for the Queen’s state funeral. The FOI request revealed that TfL undertook a range of activities in preparation for the funeral, including removing then reinstating traffic signals along roads used in ceremonial processions, and setting up a new temporary coach station after road closures prevented the use of Victoria coach station in Central London.

Hide Ad
Hide Ad

David Eddington, TfL’s head of cycle hire, added: “A revised schedule for the launch was set following the mourning period, which helped to ensure both back-office systems and communications to customers about the launch were ready for the new date. Payments were in line with our contract with Serco.”

A Serco spokesperson also provided a short statement, which read: “We deliver multiple programmes for TfL and any costs are agreed with them in line with our contract.”

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.