Virgin Trains has become the first rail operator to introduce automatic refunds to passengers for delays.
The Automatic Delay Repay system calculates the money due to a customer in the event of a delay and automatically pays the compensation directly onto the card used for purchase.
The compensation will only apply to passengers travelling on the West Coast Mainline who purchased advanced tickets direct through Virgin’s website or mobile app.
Virgin will issue a 50 per cent refund on a single ticket after a 30 minute delay and a full refund after an hour or more.
Transport Secretary Patrick McLoughlin described the development as "fantastic news".
He said: "Virgin Trains are making the most of modern technology to improve the service customers get.
"Our plan is to make sure passengers across the country benefit from schemes like this and we are encouraging other operators to roll out similar schemes nationwide."
The announcement follows a ruling that customers can now be paid in cash for delay compensation. Previously all passengers would receive money in vouchers.
Virgin’s compensation will apply to:
- up to 50% on a single ticket for delays of between 30 minutes and an hour
- up to 100% on a single ticket for a delay of between one and two hours
- up to 100% refund on the cost of a return ticket for delays of more than two hours
The company expects around 3.5 million passengers to benefit from the scheme.
Last month, Virgin Trains East Coast launched two direct services from London Kings Cross to Sunderland and Stirling.