A charity has received £3.8m of unclaimed damages from a class action legal case into unfair rail firm ticketing.

The Competition Appeal Tribunal (CAT) has approved the granting of £3.78m of the unclaimed damages to the Access to Justice Foundation, which will distribute the money through grants to free legal advice charities.

The charity said it “has already consulted key partners on the allocation of the money and will publish a funding strategy in the next month with an open funding round to follow in early 2026”.

The funding for the Foundation follows the approval last year by CAT of a £25m settlement against Stagecoach South West Trains following a case alleging that train companies charged travelcard holders twice for part of their journey.

An estimated 1.4m passengers are potentially eligible to be compensated but only around £200,000 has been claimed. Under the terms of the settlement the Tribunal can decide how the remaining money can be spent.

It ruled during the summer that there should be “substantial payment to charity alongside any claims and representations by stakeholders, to be paid out of any costs, fees and disbursements”.

The payment to the charity has been agreed by all parties involved in the case, including the class action's representative Justin Gutmann.

“The Tribunal has recognised our unique position and expertise in making impactful use of unclaimed damages,” said Access to Justice Foundation chief executive Clare Carter.

“It’s crucial that collective actions deliver real benefits to the public and we're able to work collaboratively to make sure these funds reach the people who need them most.”

Richard Pike, lead partner for legal firm Fieldfisher, which represented the charity, said: “This is a significant moment for collective actions in the UK.

"The Tribunal’s approval of the payment to the ATJF demonstrates how such proceedings can deliver tangible public benefit.”

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