Posted 21st August 2012 | 6 Comments
Pressure grows for fares rise rethink
THE CHANCELLOR is coming under growing pressure for January's rail fares rises to be cut back, as some Conservative MPs fear for their seats.
George Osborne is being warned that the increases, which could be as high as 11.2 per cent in some cases, would pose a disincentive for people to work, and also place more pressure on families who are trying to make ends meet.
Train companies have pointed out that the increase, which has been set at RPI+3 per cent for reguilated fares, includes 2 per cent for the Government, Ministers are trying to adjust the balance between the contributions from farepayers and taxpayers, so that railway users pay more.
The decision to stick with the previously-announced formula was approved in a House of Commons vote earlier this year, and Labour opposition MPs are now accusing Conservative back benchers of hypocrisy.
The rise in January will be based on the RPI last month, which was 3.2 per cent, plus an additional 3 per cent. It will be applied to all regulated fares, which include season tickets, but operators may vary the rises for individual fares by as much as 5 per cent, so long as the average rise remains at 6.2 per cent. This means that some fares may rise by as much as 11.2 per cent, and others by only 1.2 per cent.
The rise applies only in England. Scottish fares will rise by RPI+1 per cent, and no decision has yet been taken about fares in Wales. Fares in Northern Ireland are not included in the 'formula' arrangement, and rose by 3 per cent at the end of April. It was the first increase in the province since mid-2010.
Rail campaigners as well as passengers are hoping that the Government will consider a u-turn on fares for the second year running. Fares had been due to rise by RPI+3 per cent in January this year, but the rise was capped by the Chancellor at RPI+1 per cent in his 2011 autumn spending review.
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Paul George Baines, Hyde
Who was surprised at the RPI going up just in time for the fare rise being set if only it was set to pay rise of the working class be lucky to make 0.5%.
john gilfillan, ardrossan
I think it's a crying shame that the government want people out of cars and into public transport, and how do they do this by put prices up cutting back and generally whistling Dixie to anything that doesn't give them a nice little back pocket earner. The next election should be made on a party that's going to work for £8 an hour and gets a bonus for meeting targets and getting the job done.
Andy Thompson, Doncaster
To make a statement don't go by train till the fares decrease.If not what about The MP's having to pay there own train fare if they use trains and not let us pay for it see if they would moan and groan about the train prices
Tony Pearce, Reading
I don't think the proposed fare rises will actually hit the numbers travelling by train. But it would be extremely politically damaging and the Government will be hard pressed to even get 1% above inflation. Have the Government presumed when they announced all the new electrification schemes that this increase would go through unopposed ? Will these schemes now be in jeapody ? Maybe the Government has been planning to announce a U-turn on these incraeses all along to show that they are 'caring' ? I presume the Government is desperate to cut all Public Expenditure where it can to 'balance the country's books' but this increase looks like a non-starter. From Beeching in the 70s to now, we always seem to be talking about Railway Finance and never getting it right.
Melvyn Windebank, Canvey Island, Essex
The simplest solution would be to link rail fare increases to fuel duty increases and ensure both increase using the same formula!!
Lee Worthington, Manchester
As a matter of interest, how many MP's commute by rail at their own expense? It sounds ok to put more of the cost of rail on those that use it but don't forget, they are also subsidising the NHS, defence, MP's, Education, the highway network and air travel to some extent. It may have also escaped MP's that we are boldly heading into a triple dip recession and the Bank of England has now fixed interest at 0.5%. In the meantime the cost of living is increasing. Now rail fares are rising and Bob Crowe and associates will doubtlessley be soon arguing for yet another pay rise for rail workers, hiking up rail costs even more. I have one basic question, at what point will civil servants and those on the privatised gravy train realise they are pricing themselves out of business and are only contributing toward extending the recession rather than ending it?