Watchdog flags rail fare rises

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Some rail fare increases were as high as 20% last year, the report from the National Audit Office (NAO) said.

Many passengers, particularly on routes serving London will face increased crowding at peak periods until plans to increase capacity - including 1,300 new carriages - can be carried out, the NAO added.

The report said that under the management of the Department for Transport, the process for awarding passenger rail franchises in England and Wales had delivered better value for money, with subsidies expected to fall.

The NAO said increased passenger numbers and a rise in the length of journeys taken was expected to result in a turnaround from a subsidy from the taxpayer of £811 million in 2006/7 to a payment of £326 million in 2011/12.

NAO head Tim Burr said: "The Department for Transport has contracted to save the taxpayer money while improving service quality, but it will need to see that capacity increases are well-managed and timely if passengers are to expect less crowded and more reliable journeys."

Commenting on the report, House of Commons Public Accounts chairman Edward Leigh MP said: "It's good that the Department for Transport's approach to the passenger rail franchising process since 2006 has produced better value for money for the taxpayer.

"However, travelling by rail is still too often an unpleasant experience. The news that fares are likely to rise above inflation in these difficult times will infuriate many passengers who have no alternative but to travel day after day on packed trains."

A Department for Transport spokesman said: "We welcome the NAO's findings that the eight franchises they examined have reduced the burden on taxpayers while also securing improvements for passengers. We will study the findings and recommendations in detail.

"Our plans will ensure that the rail network can cope with more than 20% growth by 2014, on a network which will be even safer and more reliable."