19 May 2011

Rail review proposes train ticket price shake-up

A review into whether the UK’s railway network is giving value for money proposes increasing some fares – but decreasing others. Passengers tell Channel 4 News tickets are already overpriced.

The review, led by former Civil Aviation Authority chairman Sir Roy McNulty, has proposed a range of changes to improve Britain’s railway service – among them, changes to ticket prices.

Although an overall rise in fares was not proposed, the report “envisages some fares increasing and others decreasing correspondingly”, particularly to manage peak demand. It suggests one way to do this would be to cut regulation of off-peak fares.

Sir Roy, launching the report in London, said that rail wages were too high, rail working hours were too short and some ticket offices may have to be “done away with”.

It is imperative on the industry to give taxpayers and passengers a better deal than they are getting. Sir Roy McNulty

He said that a review of fares would make the system “more equitable” and match demand with capacity.

But the rail customer watchdog, Passenger Focus, warned that changes represented a “leap in the dark”. Regarding changes to off-peak fares in particular, it said “all the experience, all the history, shows there will be more losers than winners”.

Costs and savings

If the McNulty recommendations are implemented by the Government, up to £1bn annually may be saved by 2019. Sir Roy wants to achieve a 30 per cent efficiency improvement across the network in order to bring the UK’s costs in line with Europe.

What do you think of the UK's rail network?
Kathleen Borthwick told Channel 4 News: "It's expensive enough to travel by rail, I find it disgusting. I missed two important family funerals because I couldn't afford to travel as I'm a single parent."

But many accept there need to be changes - although further price rises, they said, were not the answer.

Chris Singleton told Channel 4 News: "The UK rail system is the laughing stock of Europe. Underfunded for years and then subjected to a daft, ideologically-motivated privatisation, it is now ridiculously expensive and at times complicated to use. Furthermore passengers are subjected to some horrendously painted trains - there are some very garish liveries on British trains that take the taste and romance out of rail travel."

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He said: “Achieving a 30 per cent efficiency improvement by 2019 should be the target for the GB rail industry given the study’s findings on the industry’s costs compared to European railways and other industries.

“A reduction of this magnitude is achievable, and is essential if passengers and taxpayers are to get the fair deal they deserve from the rail industry.”

He said a number of barriers to efficiency – including Government intervention and the franchise system, as well as wage drift – would have to be tackled. The report did not suggest line closures, but instead said franchising and Network Rail, the infrastructure operator, should be reformed. It also suggested that there needs to be more restraint over pay at all levels of the industry.

Sir Roy said: “It is an imperative on the industry to give taxpayers and passengers a better deal than they are getting at the moment.

“The problems we have are substantial but they can be fixed.”