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Commuters on track for train fare rises of up to 14 per cent
Nicholas Cecil, Deputy Political Editor12 May 2011
Commuters are facing fare rises of up to 14 per cent, the Evening Standard can reveal today.
Rail ticket prices are set to soar due to inflation, the Government's new fare system and moves to price some passengers off trains to tackle "cattle truck" conditions at rush hour.
Tube tickets could also rise sharply, possibly by more than seven per cent.
Railway regulated fares, which include commuter, season and saver tickets, will rise in January according to a new formula which is retail price index inflation, this July, plus three per cent. The latest RPI figures, for March, was 5.3 per cent.
Bank of England Governor Mervyn King yesterday warned that inflation is likely to rise even higher.
If RPI nudges up close to six per cent by July, the fare-setting formula would mean an average increase for the basket of regulated tickets of nine per cent.
Under flexibility rules, train companies can increase some fares by a further five per cent, though they also have to lower other tickets by the same amount. So some fares may rise by 14 per cent which would increase the cost of a season ticket for Folkestone by £730, for Winchester by £577, for Brighton by £460 and for Guildford by £408.
Shadow transport secretary Maria Eagle said: "Commuters should be braced for double digit fare rises thanks to the Government's disastrous plans for the rail industry.
"The Government promised to reduce the burden on fare payers yet they are preparing to pile more misery onto families already feeling the squeeze from the rising cost of living."
Richard Hebditch, campaign director for the Campaign for Better Transport, added: "With the Bank of England predicting inflation will rise, some fares could increase by 14 per cent. This would be a huge blow to many commuters who are having their wages frozen or hardly increasing at all."
But Transport Secretary Philip Hammond blamed Labour for the looming fare hikes and also wants huge savings to be made in the cost of running the rail network to make travel cheaper and cut the government subsidy.
A Department for Transport spokesman said: "The scale of the deficit means that the Government has had to take tough decisions. Revenue from fares enables the Government to continue to deliver much needed improvements on the rail network, improving conditions for passengers and helping to strengthen economic growth."
The Government was committed to investing in more than 2,100 new rail carriages, a £900 million programme to electrify rail lines and completing the Crossrail and Thameslink projects, he added.
Transport sources stressed that the RPI plus three per cent formula for fares was "set in stone" as the revenue was needed for the Government's fiscal deficit plans. Transport for London assumes that Tube and bus prices will rise by RPI plus two per cent.
Reader views (15)
What really riles me is that season ticket holders have already paid up front for their tickets, so we can't even withdraw our custom. Why should they care when they already have our money. Everyone's angry but we're pretty powerless.
Maybe we should organise a mass ticket return and all turn up at our stations on a particular day and demand refunds on our season tickets. I'd be prepared to pay for daily or weekly tickets for a few days if it brought them to their knees (and senses).
- time4change, Peterborough, England, 13/05/2011 12:57
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I am beginning to detect echos of Edward Heath(1970 -1974) Weak management and militant unions equal high prices and a poor service.
- BJ, East London, 13/05/2011 11:32
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Time4 change !!! spot on.
- Brian, Wiltshire, 13/05/2011 11:31
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And in another article in this paper, "Hammond to take on 'greedy and inefficient' rail unions", just tells you where the Tory interest really lies. No doubt they hoped that story would oust this story from the news.
- Mark H, London England, 13/05/2011 11:10
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If my fare goes up by 14% - and that is likely as First Capital are greedy, grabbing sods. Then my fare is likely to go up from £5,320 to over £6,000. Like many, I've barely had a wage rise in the last 3 or 4 years and almost certainly won't be able to afford such a hike. So, instead of helping me to get to work and pay (substantial) taxes, I'll be watching Cash in the attic in my underpants, at the government's expense.
This is all part of the attack on the commuter. This government doesn't like mobile working classes and wants us all to stay out of their precious capital; saving it for the Bankers, Insurers and super-rich (just look at the plans to ship out loads of benefit-paid tenants to the coast to get them out of London)
And I, for one, am sick of the politics and the blaming of everything on the previous Labour government. This was a world crisis, caused by greedy, cheating bankers, not the Labour government.
Christ already! This country is becoming unbearable
- time4change, Peterborough, England, 13/05/2011 09:57
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Once we had an administration that controlled the biggest empire the world has ever seen. Today, we can't run anything without messing up big time. The fares structure of these privatised rail franchises are simply ludicrous and to increase fares on rush-hour services is sheer lunacy (or greed - take your pick).
When the railways were in the public domain, everyone knew what was what and fares were affordable. Now...?
- Baron von Richtofen, Biggin Hill, 13/05/2011 09:13
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Erm why is everybody blaming the coalition? These tenders were agreed under Labour. The formula is just part of the long-term price agreement made for these companies to run the network. BTW I'm a Stagecoach shareholder & if we're reaping the rewards I haven't seen them yet.
- Mark, London, 12/05/2011 15:58
It is this TORY led government that has decided to change the fare increase formula from RPI+1% to RPI+3% and with the usual massive increase in inflation that Tory governments bring we get these massive fare rises.
Time tpo make Bob Crow TUC General Secretary!!!
- Melvyn Windebank, Canvey Island, Essex, 12/05/2011 18:36
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I could use one - so why can't I buy an annual off-peak travelcard? At present I can buy an annual travelcard, or pay for off-peak travel daily. The daily option would cost me more, and I'd lose ny Gold card and week-end "free" travel.
- Nigel, London, 12/05/2011 17:32
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All stay at home for a week and tell your boss you can't afford to drive or take the train.
Watch the prices tumble. Or see your jobs disappear off to India.
- Nobby Clark, Hither and thither, 12/05/2011 16:42
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Is it the greedy unions , or the greedy train operating companies?also why are station car park charges so high? £8 / day to park at my station cant believe the unions have much to do with that
- Brian, Wiltshire, 12/05/2011 16:27
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Erm why is everybody blaming the coalition? These tenders were agreed under Labour. The formula is just part of the long-term price agreement made for these companies to run the network. BTW I'm a Stagecoach shareholder & if we're reaping the rewards I haven't seen them yet.
- Mark, London, 12/05/2011 15:58
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To 'Top-Load' Passengers Fares is ILLOGICAL. Discouraging People to use The Railways makes NO SENSE.
The Rail COSTS are provided for, by FARES INCOME and Government Taxes.
However, the latest incarnation of Rail Privatisation, has improved little (if AT ALL), under NETWORK RAIL or RAIL-TRACK.
Rail-Franchisees receive Subsidies in addition to FARES INCOME - Rewarding Share-Holders at TAX-PAYERS EXPENSE.
The ROADS are unable to cope with Demand, hence KEN LIVINGSTONE's Efforts to address the problem with his Congestion Charge Zone.
BORIS has 'ducked-the-issue' by Cancelling WEZ, as well as Cancelling CROSS-RIVER TRAM.
Penalising RAIL-USERS with PROHIBITIVELY HIGH FARES to REDUCE Demand is INSANITY!
- JUSTIN FROMM, PRIMROSE HILL N W, 12/05/2011 15:47
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You'll notice that the benefits of all these price hikes in the private sector will be Tory shareholders...The nasty party doesn't give a toss for the working men and women of this country. We're only good for the money they squeeze out of us...
- Baron von Richtofen, Biggin Hill, 12/05/2011 15:42
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Ah the wonderfull conservative government, whta miracle workers they are.
Petrol rising , fares rising, taxes rising, wages declining, i dont think i can afford to work anymore !
- Brian, Wiltshire, 12/05/2011 14:44
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Fools.Are they trying to create more unemployemnt work and for tax payers to carry the burden/ We can't afford astronomical fares already on our pittance of a wage.
- Tom (not a "crooner" but a proud pensioner),, Colchester,, 12/05/2011 14:06
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