Oyster cards on all trains

The train operating companies serving the capital will sign a deal within weeks with Transport for London to implement the scheme.

Some will introduce it next year with the remainder the following year.

Steve Howes, London director of the Association of Train Operating Companies, said: "Oyster pay-as-you-go will operate across London by 2009.

"This will prove a major boost for rail users. It will help prevent queues at ticket offices and mean much easier journeys."

The 10 train operators had originally refused to bring in the scheme because of the cost and the fear it would increase fare evasion because not all stations are equipped with automatic ticket barriers. Now they have bowed to pressure from passengers and from TfL and are paying about £20 million to install and upgrade equipment.

Brian Cooke, chairman of London Travelwatch, welcomed the move as "good news" for passengers - but warned the operators could still do much more.

He said: "There are two main areas of concern. One is that not all the train companies have agreed to sell Oyster.

"That means that a passenger using their stations will have to search for a newsagent or other vendor to buy a ticket which is just plain stupid.

"South West Trains - one of London's busiest carriers - is refusing to sell Oyster because the company says the equipment is too expensive. We believe that every station should retail Oyster." Mr Cooke added: "Our other fear is that passengers may believe that Oyster will mean cheaper fares - but that won't be the case.

"What it will mean is that they will automatically get the best deal going and they won't have to queue at the ticket office."

Monica Wiltshire, 39, from Bromley who travels infrequently across London in her job as a child care adviser, said: "This is really good news for people like me. A Travelcard would not work because I am not a regular user."

Train operators are confident they can control fare evasion because passengers will have to pass through a gated station, either at the start or finish of their journey, by 2009. Waterloo mainline will be fitted with automatic gates next year.

In a move to prevent evasion, once an Oyster card user has "touched-in" £5 will be automatically deducted, whatever the journey and even if it is below that amount - which many local rail journeys are.

When the user "touches-out" at the end of the journey the £5 will be put back on the card and the correct fare taken.

At the moment, on the few mainline stations where Oyster is already in use, only £1.50 is deducted on entry which is all the passenger pays if they do not touch-out again.

South West Trains were condemned today over plans to close all but one of its 10 travel centres at stations. The company was accused by TSSA union chief Gerry Doherty of "putting profit before passengers". Only the office at Waterloo will survive.