Rail fares rise by average of 2.8%

Written By Unknown on Senin, 23 Desember 2013 | 19.21

23 December 2013 Last updated at 07:19 ET

Rail fares will rise by an average of 2.8% from 2 January, a rail industry group has said.

The increase, which is the smallest in four years, comes after the Chancellor said new fares should be kept in line with July's RPI inflation rate of 3.1%.

For journeys inside London, new fares will take effect on 19 January, the Rail Delivery Group said.

The price rises only affect season tickets, anytime and off-peak tickets, which are government regulated.

Train fares are going up at the following rail operators:

'Thousands of projects'

In Wales, the average rise remains at inflation plus 1% for now, although season tickets will go up by less than inflation.

Continue reading the main story

2014 will be the first year since 2004 that the average regulated train fare won't be going up by more than inflation. But ticket prices are still going up of course.

The original idea behind the government controlling the price of around half of the fares on the network (regulation) was to protect passengers from big price hikes. Ministers set the fare rises where it was thought people didn't have much of a travelling alternative. Season tickets for example.

But for the past decade, successive governments have used regulation to change who pays for the railways. They want more of the money to come from tickets and less from the government.

At the moment, tickets account for around 58% (according to the Office of Rail Regulation) of the total bill. It's widely believed that ministers want them to pay for 75% of the bill. So the chances are, fares will be going up for some years yet.

The Scottish government says increases in regulated peak fares will be capped at RPI in January 2014 and January 2015. Meanwhile, regulated off-peak fares are frozen after 2013, provided that RPI remains below 3.5% per annum.

There are no planned rises in Northern Ireland.

The Rail Delivery Group, which represents the rail industry, said it "strongly supported" the real term price freeze announced by Mr Osborne in his Autumn Statement on 5 December.

"Nobody likes paying more to travel by train, particularly to go to work, but billions are being spent to serve passengers better," the group's statement said.

"While major projects like the new King's Cross or Birmingham New Street stations are plain for all to see, work has also been proceeding with thousands of smaller, less visible schemes to improve tracks, signals and tunnels."

The chancellor announced in December that rail prices would increase in line with July's RPI inflation measure, rather than RPI plus 1% as had previously been the case.

Train companies have to ensure average prices rise by 3.1%, so individual fares can rise by more or less than that.

There is a "flex clause" that allows train companies to increase fares by as much as 2% more than the average, but they would be offset by fare reductions elsewhere.

'Faster than wages'

The travel writer, Simon Calder, told Radio 5 Live some of the price rises on major train routes - such as London to Manchester, or Reading to London - would be going up by as much as 5.8%.

It is not yet clear on which routes fares will be going down.

A spokesman for the Department of Transport said the higher fares would help fund the biggest programme of rail modernisation ever.

"That means new state-of-the-art trains, better stations and hundreds of miles of electrified track, which will help cut journey times, provide better connections and stimulate growth across the country," the transport spokesman told the Press Association.

But Stephen Joseph, who heads the Campaign for Better Transport, said season ticket prices would go up three times faster than wages.

He called for the government to stop using the RPI figures to calculate ticket prices, saying the index frequently overestimated real inflation.

"[It would have] little impact on railway revenues, but it would save passengers money and bring fares into line with things like public sector pensions," he said.


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