TfL chief waives half his bonus due to ‘tough times’

Mr Hendy, who has had overall responsibility for the capital's Tube, buses and congestion charge since 2006, was entitled to receive £136,590 in a performance-related payment.

Mayor Boris Johnson, who chairs TfL, believed Mr Hendy's achievements in the 2008/9 financial year merited the full award, but Mr Hendy asked to receive only 45 per cent, or £61,466.

The figures emerged today in Transport for London published its annual report for 2008/9. In that period Mr Hendy earned £500,000 — a basic salary of £348,444 and a bonus, paid a year after it was earned in 2007/8, of £146,440.

The commissioner is not alone in seeing his pay packet shrink. All TfL senior executives have had their basic salaries frozen and bonuses cut by 10 per cent.

Mr Hendy said: "It is only right that in these tough economic times, the pay of senior TfL managers is frozen and performance awards reduced."

Mr Johnson added: "The commissioner and his team are well aware that there has never been a more important time for TfL to demonstrate it is delivering full value for fare and taxpayers' money."

Caroline Pidgeon, Lib-Dem transport spokeswoman on the London Assembly, said: "I welcome Peter's decision and would welcome the Mayor to review TfL's bonus policy in general. He has been critical of the bonuses bankers have received."

The annual report also reveals that income from the congestion charge has fallen for the first year since it was introduced by former mayor Ken Livingstone in 2003. It generated £325.7 million in 2008/9— down from £328.2 million in the previous 12-month period.

Fewer vehicles entering central London and a policy adopted by Mr Johnson granting drivers an extra day to pay the £8 weekday charge rather than face a £120 fine, have resulted in the drop.

The Mayor said: "I want to see a fair and effective system with the aim of reducing congestion and traffic levels, not raising revenue. If a fall indicates that less people are being collared by swingeing fines then I am all for that."

The report also reveals that TfL is in a dispute with Tube Lines, the private maintenance firm upgrading the Jubilee, Northern and Piccadilly lines.

Tube Lines claims it is owed £400 million for work carried out that was not in its original contract. TfL is refusing to pay and said it will defend the claims "vigorously". The dispute is being referred to an independent arbiter.