Misery for commuters as energy costs force huge rise in rail fares

Some Government-regulated prices could increase by as much as 10 per cent, a rail watchdog has warned.

A Whitehall formula automatically increases prices each year by a minimum of 1 per cent above the rate of inflation.

Commuters face massive increases in train fares

With next month's RPI likely to be around 4.5 per cent, this could signal 5.5 per cent increases in the cost of regulated fares, which include season tickets, from January 2009.

But unregulated fares could rise by more than double that. Last year some of these fares, which are set by rail companies, rose by 14 per cent.

Critics said it was a scandal that the Government was actively encouraging inflation-busting rises at the same time as urging pay restraint to dampen down the pressure of inflation.

Anthony Smith, chief executive of rail customer watchdog Passenger Focus, said regulated fare rises had to average RPI plus 1 per cent  -  but some individual routes could exceed a 10 per cent increase.

The news comes as a report reveals that passengers who turn up to buy a ticket on the day can pay up to seven times as much as those who book in advance.

This is despite a recent Government-backed move towards simplified fares.

Research by the Campaign for Better Transport reveals that a passenger travelling from Newcastle to Cardiff could pay £13.50 in advance but would pay £98.50 on the day  -  7.3 times more.

On average those buying tickets on the day of travel pay 4.69 times more. Tory transport spokesman Theresa Villiers predicted 'more rail fare misery for commuters'.

'They are paying the price for the Government's failure to keep costs down on our railways,' she said. 'When the next lot of fare hikes comes, Ruth Kelly's fingerprints will be all over them.'

Gerry Doherty, general secretary of the transport union TSSA said: 'It is a scandal that the rail companies have this trigger which allows them to put up fares every year.'