Fares increase
Annual rail fares rise will go ahead in January, while reports suggest that a three-day season ticket is to be introduced.
RAIL Minister Chris Heaton-Harris has confirmed that the annual rail fares rise will go ahead this January, despite strong calls for fares to be frozen.
Heaton-Harris said that the increase to regulated fares, which is automatically pegged to July’s Retail Price Index (RPI) of 1.6%, was justified due to the enormous cost currently being borne by the public purse to support the railways through the COVID-19 pandemic.
According to official figures, total payments made by the Government to train operating companies (TOCs) since they transitioned to Emergency Measures Agreements in late March had reached £2.28 billion at the end of June.
Meanwhile, revenue collected from fares had fallen to less than 5% of pre-pandemic levels, meaning that rail journeys accounted for just 2% of all trips in the UK but were swallowing up more than half of total public spend on transport (56%).
“Taxpayers have been very generous in their support to keep trains running throughout the Coronavirus pandemic,” said Heaton-Harris (pictured).
“While it’s only fair that passengers also contribute to maintaining and improving the services they use, a lower rise will help ensure the system returns to strength.”
Should government stick with July’s RPI of 1.6%, then January’s fares rise would be the lowest since 2015. It compares with 2.8% last year.
Regulated fares, including season tickets and Standard returns, make up 45% of all fares and are under government control. Increases to unregulated fares, such as advance and peak long-distance tickets, are made at an operator’s discretion.
However, any increase to fares in January would appear to fly in the face of warnings from both the Campaign for Better Transport and Transport Focus that it would be counter-productive in attempts to attract passengers back to the network ( RAIL 912).
Speaking in advance of the publication of the July RPI figure, on August 19, CBT Chief Executive Darren Shirley said that for people planning a return to work, a fare rise “is the last thing they need”.
He added: “Raising rail fares when people are already staying away from the railway will further damage the economy and the
environment at a time when we need to be investing in a green, sustainable transport-led recovery.”
Transport Focus Chief Executive Anthony Smith went even further and called for a rail equivalent to the Government’s ‘Eat out and help out’ scheme, which offered 50% discounts on food and drink in participating bars, cafes and restaurants on some days in August.
He said: “The Government needs to get TOCs to offer a combination of cut-price deals, carnet-style ‘bundles’, flexible season tickets for commuters and better value for money fares across the board.”
Smith’s comments followed a survey from the watchdog showing that two out of three rail commuters expect to be working from home more often in the future.
Heaton-Harris responded by saying that the Government is working with the rail industry to seek ways to address these significant changes to established travel and working behaviours, including the introduction of new season tickets that better reflect post-pandemic patterns of working.
RAIL revealed in late July that train operators had been submitting proposals to the Rail Delivery Group that included plans for a season ticket valid for three days out of every seven, or for 12 days out of 28 ( RAIL 910).
Meanwhile, reports surfaced in the Daily Telegraph on August 29 that Government is expected to make an announcement on three-day season tickets as part of its drive to get British workers back into the office.
Heaton-Harris added: “We are investing billions to modernise out network and overhaul fares, including widening pay-asyou-go and smart ticketing, and introducing flexible tickets to benefit those who will be working from home.”
■ See Industry Insider, page 68.