Posted 20th January 2012 | 8 Comments
Government comes clean about fare rises in store
THE GOVERNMENT has confirmed that rail fare rises at the start of 2013 and 2014 are to stay at RPI+3 per cent. The rise at the start of this month was kept to RPI+1 per cent, after a policy u-turn announced by the Chancellor at the end of November, but nothing was said at the time about what would happen in future years.
The Comprehensive Spending Review in October 2010 had set out plans to increase fares by RPI + 3 per cent for the three years between 2012 and 2014.
But in his more recent Autumn Spending Statement on 29 November, Chancellor George Osborne had said: "Train fares are expensive – and they’re set to go up well above inflation to pay for the much needed investment in new rail and new trains.
"But RPI plus 3 per cent is too much
"The Government will fund a reduction in the increase to RPI plus 1 per cent."
No comment was made at the time about what would happen in 2013 and 2014 in the light of the Chancellor's change of heart for 2012, but the Department for Transport has now confirmed that the original policy for the next two years is to stay.
The confirmation has come in its announcement about the issuing of Invitations to Tender for the next Intercity West Coast franchise.
In a note attached to the ITT statement, the Department said: 'The ITT for the InterCity West Coast franchise follows the current agreed regulated fares policy as set out in the 2011 Comprehensive Spending Review – a rise in 2012 of RPI + 1 per cent and RPI + 3 per cent for 2013 and 2014, returning to RPI + 1% thereafter. Over the long term we are committed to reducing the cost of running the railways and the goal of ending the era of above-inflation fare increases.'
The general secretary of the RMT union Bob Crow said: "The West Coast tender documents make it clear that this Government intends to crash on with its policy of making the railways “rich man’s toy” – allowing the bidders for the gold-plated franchise to alter timetables and reduce capacity to maximise profits.
"Fares will be jacked up at the operator's 'commercial discretion', bleeding the travelling public dry and leading to double digit increases to line the pockets of the train companies."
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Anonymous, Derbyshire
Fare raises could be accepted more readily if most people's wages were not effectively a pay cut at the rate of inflation each year. In addition, my local service has not improved but dramatically worserned due firstly to the WCML re-timetabling and secondly due to the lack of colaboration between Cross-Country and Virgin WC. The fare has also increased by ~13% between Derby and Burton-upon-Trent - but no-one acknowledges my complaint.
@Jim Campbell... but those figures are the exception. Season tickets do offer a lower cost but a rise in my season ticket to London of over £700 next rise is hardly 'value' for what is already a very busy service with no improvements planned!
@Melvyn Windebank... I think there already is a formula that increases duty on fuel in excess of RPI but it may just be 1p in the £.
Lee, Manchester
In order to keep the cost of commuting by rail down, will Bob Crow be urging his members not to go on strike for more pay when the train operating companies profits from the latest fares hike are published?
Melvyn Windebank, Canvey Island, Essex, England
If rail fares are to rise by RPI+3% then surely the same formula should be used for road fuel duties!!
Cameron goes on and on about "protecting motorists" and yet says nought about public transport users proving he is as big a petrolhead as Boris with his "Fare taxes" while abolishing the WEZ and as to promises of new road tunnels he needs to say where the money is to re-new Hammersmith Flyover?
So if the government is to set rail fare increases what is the point of rail privitisation? Might as well re-form British Rail and stop profits being paid to what is increasingly becoming other European STATE OWNED railways, odd that given the anti europe stance Cameron pretends to hold!!!
At least First and originally Arriva were british owned but it now seems they can own our railways but we have no body that could own theirs. Perhaps if Ken becomes Mayor TFL could make a bid for RATP???
Stuart Walker, St Ives, UK
Sad to say that some Train Operators are able to 'get round' the RPI+1 restriction by changing the validity of tickets. Cross Country have applied an 0930 restriction on their 'Off Peak' fares from Cornwall. In fact the 'Off Peak' fare is the old Saver Return which has had no restrictions on Cross Country services previously - even in BR days. The result is an eye-watering 100% increase in the cost of turn up and go travel before 0930. Cross Country say they are introducing more cheap book ahead seats to compensate, but no matter how far I look in the future there are none for my journey to Scotland.
Lutz, London
As a user of the SWML I am happy to pay the extra, provided it comes with a commitment to the upgrade and extra capacity projects which are delayed and even appear to have disappeared from the CP4 objectives.
Once services are nearer to being break-even (which is feasible for the south east and inter-city), there will be fewer grounds for central government bureaucracy to delay enhancements.
Joel Kosminsky, London, Britain
RPI+3 - is still a huge rise: income will be frozen for many or linked to CPI at best. Reducing the 2012 fares rise was solely politics. ATOC's recent tabloid of how each £ of fares is split up is open to serious question so any rise undoubtedly improves profits. Passenger train operations are public service contracts with guaranteed returns - each TOC's income and spend must be transparent and available - to show where our money really goes. And be clear whether non-'controlled' fares are part of the 'flex'.
Tony Pearce, Reading, UK
I suppose they've got to raise the money for HS2 somehow.
Jim Campbell, Birmingham, UK
I acknolwedge that our fairs can at time be high but if the railways are a "Rich Mans Toy" as Bob Crow claims how come my wife was able to travel from Birmingham to London on a Virgin Pendolino in mid-morning for £25 First Class. I have also travelled to London and back in the rush hour for less than £30 round trip. Even travelling south in First Class.
Not available at all time it is true but be flexible and the options are there.
Before anyone complains about the cost of commuting remember seasons offer a big reduction against the caost of daily travel.