I’ll curb future train fare rises, promises Grayling
THE Transport Secretary will today attempt to stave off a backlash over crippling rail fare increases by announcing plans to curb them in future.
Amid growing calls to freeze rail fares after the recent timetable shambles, Chris Grayling has gone on the offensive over inflation-busting pay rises in the industry.
In a letter to union bosses and the rail industry, Mr Grayling outlined plans to cut the link between annual rail fare rises and the widely discredited Retail Price Index (RPI) measure of annual inflation.
The aim is to switch to the more realistic Consumer Prices Index (CPI) measure, which is typically around one percentage point lower. Mr Grayling said the Government is already planning to switch to this measure next year for costs it does control – such as the amount it charges rail operators to use the tracks.
But he pleaded with union barons to bring an end to unjustifiable pay demands in order to limit fare rises for passengers.
Despite lambasting fare increases for passengers, some unions including the Rail Maritime and Transport union advise members to use the discredited RPI measure as a starting point when negotiating pay rises.
The Office for National Statistics and Bank of England governor Mark Carney have both called for RPI – which is calculated differently to CPI and includes housing costs – to be scrapped. The RPI measure for July, which will be used to calculate rises in regulated fares such as season tickets in January, is expected to come in at 3.5 per cent.
It means many season ticket holders face paying hundreds of pounds extra next year. Among those facing big increases are commuters on Thameslink, Great Northern and Northern who were hit by the botched introduction of a new timetable in May. This led to thousands of delays and cancellations.
The CPI measure is expected to come in at 2.5 per cent. Both annual inflation measures will be announced today by the ONS. Writing to the bosses of the RMT, drivers’ union Aslef, Unite and the Transport Salaried Staffs Association, Mr Grayling, said he shared their desire to see smaller fare rises for passengers in future.
But he said: ‘A key part of achieving this without additional burden on taxpayers will be to ensure that costs in the industry rise no faster than ticket prices.
‘I support paying rail staff decent wages for the hard work they do, but I also now believe it is important that pay agreements also use CPI and not RPI in future.’
But Mick Whelen, general secretary of Aslef, said wages account for less than a quarter of costs.
He said: ‘This is a desperate attempt by Chris Grayling to divert attention from his own failings and the outrageous fare increases that will be condemned by commuters. This is a smoke and mirrors exercise.’ Last night it emerged that the Government has already rejected calls from Tory and Labour MPs to freeze rail fares in January.
Officials say it would cost £126million next year and around £1.7billion over five years, with much of the burden falling on taxpayers.
Mr Grayling is understood to have considered freezing fares for those worst affected by the disruption but decided this was not enough. Instead he chose to offer compensation of up to a month’s travel to season ticket holders.
Mr Grayling also wrote to Paul Plummer, chief executive of the Rail Delivery Group, which represents rail operators and Network Rail, asking for his support to curb wage increases. Mr Plummer said: ‘Fares are underpinning a once-ina-generation investment plan to improve the railway.’
‘Smoke and mirrors’
Secretary Chris Grayling may think rail users will rejoice over his plan to trim fare rises sometime in the future. If so, he must think again. Faced with another round of inflation-busting increases, commuters want relief right now – and services worth paying for.