The level of public subsidy paid to (or premiums paid by) train operators is determined by the franchising process, in which bidders compete for the right to run passenger services franchises. Franchise competitions are designed to allow train operators an adequate financial return while at the same time ensuring they can fulfil their franchise commitments and obligations in full. Last year the Department received net £1.2bn premium from franchised train operators. Further information can be found on the Gov.uk website (https://www.gov.uk/government/publications/rail-subsidy-per-passenger-mile).