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Fares are set to soar by double the rate of inflation

Rail fares rise by double inflation

Dick Murray, Evening Standard
04.09.07

London rail commuters face fare increases of up to seven per cent - around double the rate of inflation.

They are also likely to see further inflation- busting increases for years to come - despite overcrowding levels set to rise even more. Even as fares go up, there will be less chance of a seat on many routes.

Furious travel watchdogs warned that passengers would be both "shocked and surprised" at the huge increases which will be slapped on peak-time tickets from January.

The price of many monthly season tickets will rise by more than £20 - and that's only for rail journeys. Increases for the combined Tube and rail travelcards have yet to be worked out. But many will prove even more expensive with increases exceeding twice the rate of inflation.

Brian Cooke, chairman of London TravelWatch, called on the train operators - who make tens of millions of pounds a year in profit - not to impose the maximum increases allowed by the Government. "Passenger numbersare increasing year on year - and that means even more revenue for the train companies," he said. "In these circumstances there is a strong argument for the rail companies not to levy maximum increases."

Passenger numbers are forecast to rise by up to 50 per cent over the coming decade on many routes serving London. Although there are multi-billion pound schemes under way to ease overcrowding, it will be years before the benefits seep through - but these benefits will be largely wiped out by the huge increases in passenger numbers.

Ticket prices are governed by the Retail Prices Index. The industry uses the figure, which comes out in July - this year it was 3.8 per cent - for calculating the annual January rises.

The Government is allowing train companies to increase peak-time tickets by one per cent above inflation - meaning rises of 4.8 per cent.

But Southeastern, Britain's busiest commuter operator, which serves routes from Kent and south-east London into central London, is being allowed to increase rates for five years at three per cent above the rate of inflation. This is so that parent company Go-Ahead can claw back the money it is spending on improvements.

Mr Cooke said: "The one per cent and three per cent increases are the maximum allowed - the train companies don't have to do this. We call on them not to do it and give the long-suffering commuter some relief."

Anthony Smith, chief executive of Passenger Focus, the national rail watchdog, said: "Passengers will be surprised when they discover the extent of the fare rises.

"The rate of inflation will drive fares above a level which passengers expect - they are going to be very disappointed."

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