Rail fares to rise faster than inflation

Train fares will increase by an average of 5.9% in January, higher than the rate of inflation

Train fares will rise by an average of 5.9% in January, the Association of Train Operating Companies has said.

The increase is higher than the Retail Prices Index (RPI) measure of inflation, which was 5.2% in November.

Michael Roberts, chief executive of Atoc, said: "Money raised through fares helps pay for new trains, faster services and better stations.

"The longstanding government approach to sustaining rail investment is to cut the contribution from taxpayers and increase the share paid for by passengers.

"The industry is working together to continue cutting costs as a way to help limit future fare rises and offer better value for money for taxpayers over the longer term."

The shadow transport secretary, Maria Eagle, said: "Ministers have shown how completely out of touch they are with the rising costs of commuting by failing to stick to the tough rules Labour established in government to prevent train companies from increasing some ticket prices by more than the fare cap.

"It's clear that many commuters are facing a fares fiddle thanks to the government's decision to allow train companies to average out the revised fare cap across a range of tickets, meaning many tickets will rise by a shocking 9% in the New Year."

And in September, the then transport secretary, Philip Hammond, said rail fares were so expensive the system had become a "rich man's toy".

Giving evidence to the Commons transport committee, Hammond said some of the ticket prices on routes such as the West Coast Main Line were "eye-wateringly expensive".

He added: "Uncomfortable fact number one is that the railway is already relatively a rich man's toy."

Last month, the chancellor, George Osborne, took a little of the sting out of the planned new year fare rises by reducing the increase by 2%.

Before the announcement, regulated fares, which include season tickets, had been due to rise by an average of 8% in January - 3% above July's RPI inflation figure.

But Osborne said a rise of RPI plus 3% was "too much" and that the increase would be limited to RPI plus 1%.

The Atoc average figure of 5.9% includes both regulated and unregulated fares.

Regulated fares will rise by an average of 6%, which means that although some fares could go down, or stay the same, some will rise above the 6% average.

Just how much some passengers will have to pay will be known later, when individual train companies release their own figures.

Bob Crow, general secretary of the RMT transport union, said: "These inflation-busting increases show that the great rail fares privatisation swindle is still rocking along, with the train operating companies laughing all the way to the bank.

"Independent analysis by government departments has proven that the fare increases are trousered by the shareholders of the private companies while passengers pay through the nose to travel in rammed and creaking carriages.

"The corporate welfare scroungers from the train companies have bled hundreds of millions out of our railways, and they should be told that the game's up."

Roberts told BBC Breakfast: "Clearly we understand these are really difficult times financially for a lot of people.

"But actually, people are voting with their feet and their wallets increasingly to travel by train. Last year we carried an extra hundred million passengers." "If you can book in advance, you will get cheaper fares. If you can't book in advance, try travelling off-peak and you will still get cheaper fares."

Although the government cut the annual increase to RPI plus 1% for 2012, the RPI plus 3% figure is still set to apply in January 2013 and January 2014, as ministers move to put more of the cost of the railways on to the traveller! rather than the taxpayer.

The Campaign for Better Transport's (CBT's) public transport campaigner, Sophie Allain, said: "Another new year approaches and yet another round of eye-watering train fare hikes loom. Public opinion and political pressure have forced the government to ease off their original policy a little, and the operators have worked fast to update their systems with the last-minute changes.

"However, we still have the highest fares in Europe, and they will be around 24% higher by the next election."With some of the most expensive train fares in the world, we are at a competitive disadvantage at a time when the need for economic activity and growth is urgent. The government is already on track to meet its own target to reduce taxpayer spending on rail, making these fare rises unnecessary as well as counterproductive."

The CBT is working with other organisations towards a day of commuter-led action, involving a "text, tweet and call" protest and a stunt at a mainline London station on 3 January 3, the first working day back after the fare rises.

Anthony Smith, chief executive of the rail customer watchdog Passenger Focus, said: "Passengers will be relieved that the government has capped the fares formula at RPI plus 1%, but this will still mean 6% rises, which will not be reflected in most people's pay.

"The spotlight will really be on train operating companies and Network Rail to deliver on their promises about performance and overcrowding. We passengers are paying our fair share, and we want and deserve better."


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