CAA and DfT confirms delay to Atol reform due to ‘complex’ work
The CAA and the Department for Transport (DfT) have confirmed a delay to Atol reform, saying they “need more time” to ensure they get it right.
Both said they were unable to consult on final reform proposals at the end of last year as planned, blaming the delay on the “complex” work required. The CAA had planned to launch the initial phase of a revised Atol regime in April 2024.
In September, the government said it was "fully committed" to giving the CAA civil sanction powers to enforce the new-look Atol scheme once plans to reform the system are complete.
On Monday (15 January) the CAA and DfT said in a statement: “We believe there remains a strong case to reform the Atol scheme to tackle these issues and to support a scheme that remains fit for purpose, and which incentivises companies to lower their risk of failure for the ultimate benefit of consumers.”
The statement did not reveal how the Atol reform would proceed but added: “The expectation remains that the next consultation will be a joint one between the DfT and the CAA.”
It did note that 293 responses were received to a Request for Further Information issued in January 2023 from a “range” of stakeholders.
“The CAA continues to observe a considerable number of Atol holders using advance customer monies to fund various operational expenditures, which potentially exposes consumers to the risk of not being able to take their holiday as planned,” it added.
Many respondents said a “one-size-fits-all” approach would not work well given the variety of businesses the scheme covers.
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