‘End scandal of rip-off rail fares’
Tory MPS urge action as figures show some of the biggest price rises are in marginal constituencies
MINISTERS are considering cracking down on “rip-off” rail fares after Tory MPS warned that price increases are heaping “financial misery” upon commuters and could cost the Conservatives at the next election.
The Daily Telegraph understands that Chris Grayling, the Transport Secretary, has asked officials to produce plans to peg future increases to a lower measure of inflation to ease the burden on rail passengers.
It comes as commuters returning to work today face fare rises of 3.4 per cent, the highest in five years, with season tickets on some of the country’s busiest routes going up by more than £100.
The rises were condemned amid mounting disquiet among Conservatives that they are fuelling support for Jeremy Corbyn, the Labour leader. Rail campaigners say some of the highest increases are in marginal Conservative constituencies. There are also concerns that rail bosses are in line to receive pay packages worth as much as £5.4 million, despite criticism over poor service and disruption caused by strikes.
Mr Corbyn pledged during the snap election to re-nationalise the railways, something that proved popular with younger voters despite warnings by Tories that it would come at a huge cost.
Labour yesterday produced figures showing that under the Tories rail fares had risen by up to 50 per cent. Some commuters are paying £2,500 more than they did just seven years ago.
A government source told The Telegraph: “The people who are paying these higher rail fares are the backbone of the economy. They are hardworking commuters, slogging their guts out day in, day out. They are the people we should be working to take care of.”
He added: “If you allow that situation to persist people will be receptive to extreme ideas like re-nationalisation. You can see why people might be seduced by that. It’s very difficult to justify rail fare increases that outstrip wage growth.”
Officials in the Department for Transport are examining plans to use the Consumer Price Index (CPI) to set fares, in a move that would cut future rises and bring them into line with the cost of living. Fares are currently linked to the Retail Price Index (RPI), which is consistently higher.
The campaign group Railfuture has estimated that rail fares would be 17 per cent lower if they had been tied to the CPI measure of inflation since 2014. However, there are concerns the move could prove expensive while delivering only a relatively modest reduction in fare rises.
Tory MPS are calling for urgent action to address rail fares and want to go further by preventing companies
from raising their fares if they have been shown to have performed poorly.
It yesterday emerged that many of the bosses of railway companies are in line to receive large multi-millionpound pay packages this year, at a time when passengers have faced inflationbusting rises in fares, delays to their journeys and strike action.
Some of the executives could end up taking home as much as £5.4 million, despite a year that has been plagued by engineering works, poor service and disruption through strikes.
Robert Halfon, a former minister and former deputy chairman of the Conservative Party, told The Daily Telegraph: “Ever-increasing rail costs cause financial misery for commuters and increasing scepticism towards rail privatisation – the rises are not fair and particularly hit lower-paid rail travellers. That is why rises, at best, should be curtailed by the Chancellor and, at worst, linked to the CPI rather than the RPI.”
Tim Loughton, another former minister, said: “At a time when wages are still being squeezed and train fares – which are essential for many workers – are going up at a record rate, simply saying that the railways since privatisation have been a huge success story doesn’t really cut the mustard.
“It strikes a chord with many working people when someone says that fares are too high and the railways would be better in state hands.
“History shows us the reverse is true, but passengers deserve a better quality of service, proper value for money and proper recompense for poor service.”
Mick Cash, general secretary of the National Union of Rail, Maritime and Transport Workers, told The Guardian: “While workers are struggling, the private train companies are raking it in. As we enter the 25th anniversary of railway privatisation legislation, the need for public ownership of rail has never been more popular or necessary.”