New Year Fare Increases on Trains

29/11/2007

Rail passengers should make the most of free travel on New Year’s Eve, because come January 2nd they will face average fare rises of up to 7%, according to the Association of Train Operating Companies (ATOC).

Both regulated and unregulated fares are set to rise. The former, which includes season tickets, savers and standard day returns, will rise by 4.8% - an average of 0.6% above the current RPI.

Unregulated fares, including advance purchase fares, cheap day returns, and long distance open fares, will go up according to train operators’ discretion, with average fare rises to be 1.2% above the current RPI.

The ticket price increases have occurred because after New Year’s Eve, many train operators will suffer the double blow of receiving lower subsidies and having to make premium payments to the Department for Transport - an increasing feature of franchise agreements. Approximately £148m of premium payments will be paid by train operators in 2008/9 and this figure is set to rise steeply in coming years.

Chairman of passenger watchdog London TravelWatch, Brian Cooke, said: “Passengers will, once again, face a rise in their fares in 2008 by the maximum allowed by the government, despite passenger numbers increasing. More passengers equal more profit for the operators, so we are disappointed that the fares have risen by the full amount permitted.”