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Commuters to face 11 per cent New Year rail fare rise
Dick Murray, Transport Editor21.11.08
COMMUTER train fares will rocket by up to 11 per cent next year despite an eleventh hour plea by Transport Secretary Geoff Hoon to limit the rises.
Turning a deaf ear to the Cabinet minister's demand for restraint, rail operators announced that increases far outstripping inflation will come into effect on 2 January.
Rail chiefs confirmed commuters in the South-East will bear the brunt of rises — up an average of eight per cent for peak time and six per cent off peak.
The worst-hit passengers will be on Southeastern, which will be allowed to put up fares by an average of eight per cent to fund commuter trains on the Channel Tunnel Rail Link.
The increases mean hundreds of pounds will be added to some annual tickets sparking fears that passengers could be priced off the railways.
Every year train companies are allowed to increase regulated commuter fares by the Retail Price Index based on the July figure — which was 5.3 per cent — plus one per cent. Regulated fares include season tickets. The exception is Southeastern, which serves Charing Cross, Cannon Street and Victoria.
It has been given government permission to increase fares by RPI plus three per cent. This is to pay for new high-speed commuter services due to begin in early 2010 on the Channel Tunnel Rail Link from Ashford into St Pancras International.
But all train operators are allowed to “juggle” increases on unregulated fares by two per cent if they offset steep rises on some services by below-inflation rises on others — leading to the 11 per cent increases on some lines.
Unregulated fares include most leisure and advance tickets.
Mr Hoon warned rail chiefs earlier this week that they risk sparking fury among commuters with huge fare rises as inflation falls in the downturn.
But the Cabinet minister refused to intervene to put a lid on increases. A Department for Transport spokesman said: “It's clear that passengers have concerns about the value for money they receive from train companies.
“The Secretary of State reminded operators that difficult economic circumstances will make these concerns more acute, and called on them to bear this in mind when setting their fares.”
This week inflation fell to 4.5 per cent and economists predict there could even be deflation next year.
Gerry Doherty of the TSSA Transport Union said: “It is a scandal the rail companies have this trigger which allows them to put up fares every year.”
In January this year fares increased by up to 14.5 per cent.
Michael Roberts, chief executive of the Association of Train Operating Companies, tried to justify the rises.
He said: “The January fare changes mean train companies can continue investing in an even better railway and still offer a range of good deals.”
The new rates mean a yearly season ticket to London from Ashford will rise by £276 to £3,736 and from Sevenoaks by £184 to £2,484 (both eight per cent).
A yearly season ticket from Oxford will go up £233 to £4,125 and from Reading by £199 to £3,527 (both six per cent).
From Brighton an annual ticket rises by £196 to £3,476 and from Winchester by £222 to £3,934 (six per cent).
Reader views (28)
My fare has risen to £141 from £127 - during this period of hardship for many the rail companies have shown their true colours. They will use their monopolies to fleece the commuter of as much as they can possibly get away with - the rest is claptrap.
Equally the government has, by allowing these incresases, demonstrated its contempt for the South East once again.
- Robert, Caterham, Surrey
Geoff Hoon says the government will not intervene - these are the people that intervened in the first place and laid the platform (no pun intended) for the rail companies to put up fares by the formula they use.
The managing director of SE will be available to take your comments at Cannon Street 08 to 10am on the 4.12.2008.
Cheer up you can always name a train - see the standards article.
I am so happy I am paying for the CTRL with my fare increases - I thought it terminated at St Pancras (north of the river) or am I just subsidisying Stratford and the Olympics again and Ebbsfleet
I am sure most readers would rather SE spent some cash on sorting out the famous (infamous) London Bridge, Lweisham....bottlenecks. No just more corporate inefficiency spin, name a train...blah,blah,blah...
- Tony, London
My 'O' level Economics course in the 1970s was unequivocal on the subject of commuter railways. You cannot run the number of trains required to carry millions of people every day in a concentrated period of time and still make money when the necessary train carriages are pretty much unused for the rest of the day unless everything is skewed in your favour. This is what the scandalous Tory privatisation did. It is fully discredited. The cheaper, more efficient systems around Europe that everybody is envious of are, shock, horror, nationalised services.
Anybody making a claim that there is a real choice for the majority of city-centre based commuters in London is living in cloud-cuckoo land. More than 80% of commuter journeys into central London are by overground and tube services. If that number were to fall, the city's roads would seize up completely. As I'd expect on this forum. you will all blame Brown and Blair. They are guilty but only of not having undone the damage done by John Major's Government. We seem to be stuck with centre right policies for everything. Thatcher lives on. I guess you could say that it's what we all voted for.
- Tony, N19, London, England
No matter how much commuters complain, there is nothing they can do about it as they have no alternatives. Just take it up as you took all the other fare rises over the years for a deteriorating service.
- John, London, UK
Why is no-one asking what the money is for? We already pay for the infrastructure through taxes, ie National Rail, so where is the extra cash going? I am fed up using public transport for a way of paying shareholders a divi, when in reality it is a public service, and that should never be forgotten. What the hell is going on?? Can we vote on this?
- Rod, Epping, UK
How nice to know that the trains will now be spotless, and I will have a seat every morning, rather than standing for my hour long journey at 7am. Isn't this what the money should be going towards - better trains and better services for the commuters? They are more than happy to increase our fares by substantial amounts but they are not prepared to offer a good service - it is not good enough!
- Anon, London
Come on people look at the bright side. Should be good for London house prices!
- Mark, London
Pay more for a ever deteriorating service? well forget it cos I aint.
- Kev, London
Might as well not have a Minister for Transport, after all, it doesn't affect Goon, or BS Brown, does it? MPs should ONLY be allowed to use public transport, with no compensation for travel expenditure.
- Ralph, GB
Greedy Unions! I hear the pension pot for each standard railway worker is £1 million as they are on final salary schemes. This means they will get pensions of £40,000 when they retire (I have only been offered a stakeholder pension). It is pathetic that rail drivers get £55,000 BEFORE OVERTIME given that it is a manual job with one lever. Even on the stations the staff just seem to 'hang around'. If someone squeaks they cry 'strike'. We should pay for REAL improvements like in Japan with superfast modern trains always on time and no drivers!
- N Azam, London
Yes they are introducing new high speed trains irony it will take me longer to get to work using them and cost me more money!!
Why should we fund the 2012 Olympic train link?
It is the only reason the train is being sent to St Pancras rather than a usual South Eastern terminus.
We never wanted it wenaver asked for it so why are we paying for it?
- Duncan Bailey, Kent
With the extra revenue being generated I feel disgruntled workers and a strike coming on.
- Bob Crow, London
Another reason to vote Labour - I don't think.
- Frederick, London UK
I work flexible hours in order to get a seat on the train (medical condition means I'm not supposed to stand). As most people have to stand for the full journey into London, this is a downright disgrace, having to pay a 10% increase on our net salaries. A real rip off for no better service. When I think of how cheap it is travel on the rail networks in the rest of Europe we really do know we are being ripped off!
- Sue, Orpington, Kent
Gordon Brown is very very weak on this and its a scandal that has gone on for years. The train companies do what they like and treat people like dirt because of the captive market.
They bully customers and give the worst value for money possible and they will keep on doing it until the regulator starts to focus on the customer.
Could train companies please remind their staff that the people who pay their wages are the people they treat like cattle. Most staff members can only give you some form to write in for compensatation instead actually giving you the real reason why your standing there.
'Signal problems' and 'Malfunction on the train' are no longer going to cut it... Not at these prices.
- Mark, st albans
Let's hope the rail companies don't add insult to injury by continuing in the misguided policy of treating their customers as criminals if they board a train without a ticket, often for quite innocent reasons. Not so long ago, on what was once quaintly called British Rail, you could buy a ticket on the train or at your destination. Penalty charges and threats of prosecution alienate the public and are unnecessary.
- Blackstone Coke, London
so deflation is the threat ! ha ha ha
- James, London
I seem to remember talk of deflation earlier this week; seems it doesn't apply to the real world.
- Nobby Clark, Perth, Scotland
Looks like another good reason for commuters to "switch back" to using their own private vehicles!
- Fraser, Telford Park
What is the point of these rises if they're effectively going to price people off the rail network? If people can't afford to get to work, then they're not going to use the trains and the operators will lose income as a result. This is absolutely scandalous. I already pay over £3000 a year for the privilege of commuting with Southeastern, but any further rises will have me seriously considering finding alternative ways of getting to work. Just plain crazy.
- Chris Irvine, Rochester
Everyone should refuse to pay for their ticket on the 2nd Jan 09! I think that’s our only way of protest. The problem is everyone needs to do it or it won't work. Who's with me...?
- Paul, London
We already have the highest rail fares in the world, this just sends them into orbit.
- Paul, London
10% increase for a service where I have to stand both in and out of London everytime I use it! How can this be justified? I know of no other business that can deliver such poor quality and request anual increases with no benefit to the customer!
- Rob, Herts
This is blatant corporate theft.
They have raised fares already by inflation busting amounts, declaring it was needed to improve the rail system. Now they are doing the same thing again for the same reason.
Looks like the rail regulators are getting some kind of Christmas bonus, if you know what I mean. The services at the sametime are just as bad.
Let's hope we do not get any leaves on the line this year.
- Frank, Home Counties, England
I have been hearing this rubbish for years , there is no improvement to the service ever,in these days of hardship this should not be allowed , also does this inflation linked rise mean that next year if we go into deflation fares will come down, i bet not !!
- Brian, Wiltshire
This is no more than the real rate of inflation although the government would want you to believe otherwise.
- Roger Slade, Winchester, Hampshire, England
Why can't the government offer some tax breaks for people using public transport? This means I will now have to find £3250 out of my salary after I've paid tax & NI.
- Iain, Covent Garden
I would like to see what the businesses define as 'improving the train service' i.e how much of our money is going to improving quality of track/trains/facilities versus protection of revenue.
Quality is a consumer issues, protection of revenue and new technology is not......
- Vrinder, Southampton, UK
