Peak time price hike on the cards for rail passengers

Proposals include raising fares at peak times to discourage passengers from travelling during busier periods.

The government’s consultation paper stated: “If commuter demand could be ‘smoothed’ even within the 7-10am and 4-7pm windows, this would enable capacity to be used more effectively and could allow more people to travel by rail overall.”

Launched by Transport Secretary Justine Greening, the paper contained the government’s response to a Whitehall-commissioned rail value-for-money report published last year by Sir Roy McNulty.

Ms Greening said Sir Roy had concluded that inefficiency was costing farepayers and taxpayers £3.5bn a year. She said the rail industry would work together to eliminate this £3.5bn inefficiency gap by 2019. Commentators believe this means that fares will rise by more than inflation throughout this period.

Better punctuality promised

The government plans also outlined a reforming of rail franchises, strengthening of the powers of the Office of Rail Regulation and better punctuality and real-time travel information.

“It is time to bring fares out of the 1970s and into the 21st century,” said Ms Greening. The transport secretary said she was setting out “a roadmap… to root out inefficiency so we can deliver real value for money that ends inflation-busting rail fares once and for all”.

This January, season ticket holders had to endure 6 per cent average fair rises and are also facing average rises of RPI inflation plus 3 per cent for January 2013 and January 2014.

Transport unions fear that implementing the McNulty cost-cutting recommendations could cost thousands of jobs, with some fares rising and many ticket offices closing.

The full implications of the government’s response to McNulty will be known when the consultation is over.