Rail passengers face above-inflation fare rises

Rail passengers will face big fare rises in the new year with some tickets going up by more than double the rate of inflation, it was announced today.

Regulated fares, which include season tickets, are rising by an average of 6 per cent from January 2 2009.

Unregulated fares, which include most leisure and advanced-fare tickets, will be rising by an average of 7 per cent, with some fares going up by an average of more than 11 per cent.

Regulated fares are based on a set formula which limits increases to 1 per cent above retail price index (RPI) inflation.

The bad news for train travellers is that the fares for a new calendar year are always set at whatever the RPI figure was the previous July.

This year's July RPI was 5 per cent - a figure which has now dropped, too late for commuters, to 4.2 per cent.

Announcing today's rises, the Association of Train Operating Companies (Atoc) said the increased revenue would help pay for major investment to improve the railways and deliver better value for taxpayers in line with Government policy to reduce subsidy to the railway by 40 per cent between 2006/07 and 2013/14.

Atoc said train operators were currently carrying out work worth more than £800 million to introduce new trains, refurbish existing fleets and improve stations.

It added that these measures would benefit passengers through more reliable and comfortable journeys, improved station facilities (including more car and cycle parking) and better personal security.

Fare revenues and Government grants would also help fund the multi-billion pound investment programme to increase network capacity which starts in 2009.

Atoc chief executive Michael Roberts said: "Passengers in recent years have helped pay for 20 per cent more services, and performance in the first half of this year is at the highest level since records began, with more than 90 per cent of trains arriving on time.

"Yet, since 1996, in real terms, overall rail fares have risen by just 5 per cent and standard-class regulated fares are actually lower than they were in the year before privatisation."

He went on: "Record performance and better services have contributed to the highest number of passengers travelling by rail for 60 years. The January fare changes mean that train companies can continue investing in an even better railway and still offer a range of good deals for customers.

"More than 80 per cent of rail journeys are made using either a price-regulated or discounted ticket. And with the real costs of motoring up by over 25 per cent since 1996, rail will continue to be an attractive option for millions of people every day."

The highest annual increase is for unregulated fares on CrossCountry services which will rise in January by an average of 11 per cent.

Other companies with big unregulated-fare increases are First Capital Connect (up an average of 9 per cent), Chiltern (up 7.5 per cent), National Express East Coast (up 7.4 per cent) and South West Trains (up 7.2 per cent).

Travellers on Southeastern - whose trains run into London from Kent and Sussex - will have to fork out for regulated fare increases averaging 8 per cent from January.

This is due to Southeastern's regulated fare formula being RPI plus 3 per cent - with the higher figure necessary to pay for new high-speed domestic services in Kent due to be introduced next year.

In contrast, London Midland has frozen its unregulated fares which, in effect, will go down 5 per cent.

Anthony Smith, chief executive of customer watchdog Passenger Focus, said: "No fare rises are welcome in the current economic climate. These rises hark back to a time of high inflation and spiralling energy costs. The economy is different now, but the seemingly unstoppable rail-price express ploughs on.

"Some train companies deserve credit for limiting some unregulated rises. However, rises way above inflation are unjustified and unfair. These average fares will no doubt mask some very steep rises on particular routes. We will study the real impact as we unearth the details in the next few days."

Passenger Focus added that linking fares to inflation had served passengers relatively well in calmer times, but the Government now needed to take a fresh look at consumer protection and fares.

Mr Smith went on: "We also need to look closely at establishing a fairer link between fares, investment and satisfactory performance. We cannot simply go on dumping costs on to the passenger in this way."

Gerry Doherty, leader of transport union TSSA, said: "This makes a mockery of the Government's pledge to help hard-working families through the recession. Ministers should have cancelled this annual inflation-plus increase if they were serious in helping people just get to work, let alone keep their jobs.

"As it is they have allowed the rail companies to increase fares regardless of the standard of service they provide. This is a licence to print money and it should be stopped.

"If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery?"

These are the company-by-company percentage increases in average fares which will take effect from January 2 next year:

COMPANY, REGULATED, UNREGULATED

Arriva Trains Wales, 6 per cent, 6 per cent
c2c, 6 per cent, 6 per cent
Chiltern Railways, 6 per cent, 7.5 per cent
CrossCountry, 6 per cent, 11 per cent
East Midlands Trains, 6 per cent, 7.4 per cent
First Capital Connect, 6 per cent, 9 per cent
First Great Western, 6 per cent, 6.6 per cent
First ScotRail, 6 per cent, 6 per cent
First TransPennine Express, 6 per cent, 6.4 per cent
London Midland, 6 per cent, 0 per cent
Merseyrail, 5 per cent, 5 per cent
National Express East Anglia, 6 per cent, 6 per cent
National Express East Coast, 6 per cent, 7.4 per cent
Northern Rail, 6 per cent, 7 per cent
Southeastern, 8 per cent, 6 per cent
Southern, 6 per cent, 6 per cent
South West Trains, 6 per cent, 7.2 per cent
Virgin Trains, 6 per cent, 7 per cent

AVERAGE, 6 per cent, 7 per cent