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Rail fares to rise by up to 11 per cent
THE Government has been urged to act as the cost of rail travel is set to soar in the new year with some fares rising by more than double the rate of inflation.
Regulated fares, which include season tickets, are rising by an average of six per cent from January 2.
Unregulated fares, which include most leisure and advanced-fare tickets, will be rising by an average of seven per cent, with some fares going up by an average of more than 11 per cent.
The highest annual increase is for unregulated fares on CrossCountry services which will rise in January by an average of 11 per cent.
Other companies with big unregulated-fare increases include National Express East Coast, which will increase by 7.4 per cent.
Regulated fares are based on a set formula which limits increases to one per cent above retail price index (RPI) inflation.
The fares for a new calendar year are always set at whatever the RPI figure was the previous July, and while in July RPI was 5 per cent, it has now dropped to 4.2 per cent.
The Association of Train Operating Companies (Atoc) said the increased revenue would help pay for investment to improve the railways and deliver better value for taxpayers in line with Government policy to reduce subsidy to the railway by 40 per cent between 2006/07 and 2013/14.
Atoc said train operators were carrying out work worth more than 800 million to introduce new trains, refurbish existing fleets and improve stations.
Chief executive Michael Roberts said: "Passengers in recent years have helped pay for 20 per cent more services, and performance in the first half of this year is at the highest level since records began, with more than 90 per cent of trains arriving on time.
"Yet, since 1996, in real terms, overall rail fares have risen by just 5 per cent and standard-class regulated fares are actually lower than they were in the year before privatisation."
But the increases have angered passenger groups and MPs who say customers cannot afford to keep paying rising prices.
Anthony Smith, chief executive of customer watchdog Passenger Focus, said: "Some train companies deserve credit for limiting some unregulated rises. However, rises way above inflation are unjustified and unfair. These average fares will no doubt mask some very steep rises on particular routes. We will study the real impact as we unearth the details in the next few days."
Passenger Focus added that linking fares to inflation had served passengers relatively well in calmer times, but the Government now needed to take a fresh look at consumer protection and fares.
Gerry Doherty, leader of transport union TSSA, said: "This is a licence to print money and it should be stopped. If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery?"
Liberal Democrat transport spokesman Norman Baker MP said: "The Government has repeatedly frozen fuel duty for motorists in the light of external circumstances, despite the fact that under Labour the cost of motoring has actually fallen in real terms by 10%.
"It's about time ministers showed the same consideration to train passengers as they have shown to motorists."
Gordon Brown's spokesman said: "It is clear that passengers do have concerns about the value for money they receive from train companies.
"Secretary of State Geoff Hoon this week reminded operators that difficult economic circumstances will make these concerns more acute and called on them to bear this in mind when setting their fares.
"It is a matter for the rail companies to explain why they have made the decisions they have made, but we want to make sure passengers are getting good value for money."
How the increases add up:
Train operator / Regulated increase / Unregulated increase
Arriva Trains Wales 6 per cent / 6 per cent
c2c 6 per cent / 6 per cent
Chiltern Railways 6 per cent / 7.5 per cent
CrossCountry 6 per cent / 11 per cent
East Midlands Trains 6 per cent / 7.4 per cent
First Capital Connect 6 per cent / 9 per cent
First Great Western 6 per cent / 6.6 per cent
First ScotRail 6 per cent / 6 per cent
First TransPennine Express 6 per cent / 6.4 per cent
London Midland 6 per cent / 0 per cent
Merseyrail 5 per cent / 5 per cent
National Express East Anglia 6 per cent / 6 per cent
National Express East Coast 6 (per cent / 7.4 per cent
Northern Rail 6 per cent / 7 per cent
Southeastern 8 per cent / 6 per cent
Southern 6 per cent / 6 per cent
South West Trains 6 per cent/ 7.2 per cent
Virgin Trains 6 per cent / 7 per cent
AVERAGE 6 per cent / 7 per cent
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Saturday 26 May 2012
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