Government targets rail fares in cost of living blitz
Rail passengers struggling with yearly inflation-busting fare increases are being offered some respite by the government, but will still be hit in the pocket.
The government is limiting how much the train operating companies in England can raise “regulated” fares, including season tickets and saver returns, in the new year.
They could have risen by as much as 9.1 per cent on individual routes, but ministers say the companies will only be allowed to increase them by a maximum of 6.1 per cent, saving some passengers as much as £200 a year.
Following Labour leader Ed Miliband’s pledge to freeze gas and electricity bills, the government is keen to show that it is taking action to deal with the rising cost of living.
But the move is only likely to benefit a minority of passengers paying “regulated” fares because these fares were only due to rise by an average of 4.1 per cent in January 2014. Most passengers would not have been hit by a 9.1 per cent increase.
It is not possible to say how many passengers will gain because the rail companies are still considering their fare increases for next year, and assumptions cannot be made about which individual fares would have gone up by the full 9.1 per cent if the government had not intervened.
‘Wallet nicked’
Bob Crow, leader of the RMT transport union, said: “For a few it will feel like having your wallet nicked with the mugger then handing you a few bob back to buy a pint. Nobody will be fooled by this political stunt.”
Transport Secretary Patrick McLoughlin said: “Today is just the start of a government-wide programme to help hardworking people and reduce the cost of living.
“The government will be announcing a range of initiatives to help put money back in people’s pockets over the next few weeks.
“By capping fares we are protecting passengers from large rises at a time when family incomes are already being squeezed.”
There will also be efforts to ensure that passengers are provided with the information they need to choose the best ticket for their journey and that this is clear and not misleading.
“Touch in – touch out” tickets across the rail network could mean part-time workers receive a discount on their season tickets if they travel three days a week rather than five, or choose to make their journeys earlier or later in the day.
For a few it will feel like having your wallet nicked with the mugger then handing you a few bob back to buy a pint. Bob Crow, RMT union
Anthony Smith, chief executive of rail customer watchdog Passenger Focus, said: “Passengers will be pleased to hear that the amount train companies can raise individual regulated fares by has been limited.
“We have been calling for this to happen for years. It is a step towards a fairer system.”
Cost of living
But Mary Creagh, shadow transport secretary, said the cost of living – prices rising faster than wages – had risen in 38 of the 39 months David Cameron had been prime minister, making working people £1,500 a year worse off.
She said: This announcement doesn’t go as far as Labour’s plans which would prevent train companies from increasing fares beyond one per cent above inflation.
“If David Cameron was serious about tackling his cost of living crisis he would back Labour’s plans to freeze energy prices and expand free childcare for working parents.”
Manuel Cortes, leader of the TSSA rail union, said no action was being taken to tackle inflation-busting fare increases, and all the government was doing was offering to “limit them to twice the rate of inflation rather than three times the rate of inflation, which have left us with the highest fares in Europe”.
The Association of Train Operating Companies said the reduction proposed by the government was in line with what the firms had suggested.
