Fares up 3.6%
Largest annual rail fares rise in years triggers annual row between industry, users and stakeholders.
REGULATED fares on Britain’s railways are to rise by an average of 3.6% from January 2018, following the announcement of the Retail Prices Index (RPI) inflation figure on August 15.
The latest fares increase will be the highest in five years, and comes at a time when costs of living are outstripping wage growth.
The increases drew criticism from passenger watchdog Transport Focus. Director David Sidebottom said: “Yet again passengers, now majority funders of the railway, face fare rises next January. Commuters do not give value for money on their railways a high satisfaction score - just one-third, according to our latest survey. So, while performance remains patchy, and with pay and wages not keeping pace with inflation, they will feel rightly aggrieved if they are paying much higher rises next January.”
The RPI is the figure used by the Government to set annual fare increases, and regulated fares must rise by no more on average than this amount. However, in other areas the Government has increasingly preferred to use the Consumer Prices Index (CPI). This figure was one percentage point lower, at 2.6%.
Sidebottom added: “Why is the Government not using its preferred measure of inflation - the one that is used to determine wages and pension increases, and one which is often lower than RPI? Why not use the Consumer Prices Index for rail fares, too? Passengers deserve a fairer deal.”
The Rail Delivery Group, which represents train operating companies, claimed the increases would support investment.
Chief Executive Paul Plummer said: “Money from fares pays to run and improve the railway, making journeys better, boosting the economy, creating skilled jobs, and supporting communities across Britain - and politicians set increases to Season tickets.
“It’s also the case that many major rail industry costs rise directly in line with RPI. Rail companies are working together to improve performance now, adding thousands more seats over the next 18 months and (longer term) simplifying fares and ticket buying so that the country has the railway it needs to prosper.”
Campaign for Better Transport Chief Executive Stephen Joseph called on the Government to take action on rising fares, saying: “This rise will be the highest since 2013 and will leave many commuters struggling to meet the cost of their commute next year.
“That’s why we want the Government to bring in a fares freeze for January. It’s frozen fuel duty for the last seven years, and we think rail fares should be given the same treatment.” The CBT also wants the Government to rethink the way it calculates rail fares in the future.
London Travelwatch criticised what it called “large and confusing variations” in fares, and called on the Government and the rail
industry to “work towards a simpler, fairer and more unified fares structure across the London area”.
Railfuture’s Bruce Williamson, meanwhile, accused the Government of a “double standard”, pointing out that it wants to phase out diesel cars in favour of electric vehicles, yet has cancelled electrification schemes.
“We recognise that rail industry costs have risen, but if some of that fare rise money were put into making the rail industry more efficient it could absorb the 1% difference [between the RPI and CPI measures] and passengers would benefit,” he said.
The RMT union claimed that the fares rise would deliver an additional £337 million in revenue for train operating companies, and claimed that profits will be “siphoned off” to subsidise overseas operations of some franchise holders. General Secretary Mick Cash called the rise “another kick in the teeth for passengers” and called for public ownership of rail franchises.