London St. Pancras Highspeed to Launch Incentive Scheme

London St. Pancras Highspeed, the new trading name of HS1 Ltd, has announced a new financial incentive scheme aimed at encouraging international train operators to expand services between London and mainland Europe.

The International Growth Incentive Scheme, launched today for consultation, is designed to make better use of the high-speed line that currently operates at half its available capacity.

The scheme proposes significant discounts on access charges and passenger-linked rewards to stimulate the growth of international rail travel from the UK.

Under the proposed scheme, eligible operators could receive discounts of up to 50 percent in the first year on the Investment Recovery Charge (IRC), which is paid to run services on the high-speed line. This would reduce to 40 percent in year two and 30 percent in year three.

An additional incentive will offer operators a 1 GBP rebate for each extra passenger carried above baseline levels, with funds to be jointly reinvested in marketing and passenger growth initiatives.

The high-speed line runs from London St. Pancras International to the Channel Tunnel in Folkestone, forming the UK’s only high-speed railway and a key link for cross-Channel services. With significant capacity currently unused, the new scheme is part of a broader strategy to increase train frequency, develop new routes, and encourage investment in updated rolling stock.

The incentive scheme has two core components:

New Services Incentive  – Offers IRC discounts for operators introducing new destinations, connecting intermediate stations, or deploying new rolling stock.

Passenger Incentive  – Provides a performance-based rebate into a pooled fund, supporting collaborative efforts to increase passenger demand through marketing and service improvements.

The announcement comes alongside wider plans to expand international capacity at St. Pancras station. The goal is to accommodate up to 5,000 international passengers per hour, in anticipation of continued growth in demand over the coming decade.

Robert Sinclair, CEO of London St. Pancras Highspeed, said:

The International Growth Incentive Scheme is an innovative and groundbreaking proposal designed to boost international rail travel with more services to more destinations in Europe.

We are enabling operators to expand their services, increase the network of destinations they serve and invest in new rolling stock.

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.

We believe this will boost the UK’s economic growth and contribute to our national effort to cut carbon.

A recent survey indicates that 60 percent of London residents support restrictions on short-haul flights where viable rail alternatives exist.

London St. Pancras Highspeed has also recently signed a Memorandum of Understanding with Eurotunnel to coordinate improvements in scheduling, journey times and service development.

The consultation on the International Growth Incentive Scheme is now open to international train operators and the Office of Rail and Road (ORR). Subject to the consultation outcome, the scheme is due to launch on 30 May 2025.

This announcement has been positively received by prospective operators looking to launch services in competition with Eurostar. The Office of Rail and Road (ORR) has also recently stated that the London depot at Temple Mills International could accommodate additional trains to open up the cross-Channel line to competition.

Reacting to St Pancras High Speed’s new incentive scheme Adrian Quine, CEO of Gemini Trains said:

We have spent 2 years developing a very robust business plan prior to today’s announcement. This will further strengthen our plan for competitively priced fares, attracting more people to make the shift from road and air to rail. We are now seriously assessing whether this scheme will enable us to offer additional new and exciting routes.