Rising Rail Fares in England: A Looming 8% Increase
New figures indicate that rail fares in England are set to increase by up to 8% in 2024 if the government adopts the same formula as the current year. This potential hike would mark the highest annual increase since at least 1996 when the privatization of Britain’s railways took place.
Formula for Fare Increases
The Department for Transport (DfT) employed a formula that aligned this year’s cap on fare increases with Britain’s average earnings growth for July 2022, which stood at 5.9%. However, data from the Office for National Statistics reveals that the corresponding figure for July 2023 surged to 8%. While the DfT has confirmed that next year’s fare increases will be below the Retail Prices Index (RPI) measure of inflation for July, which stood at 9%, the specific formula it intends to use has not been disclosed.
Impact of 8% Increase
An 8% fare increase could have significant consequences for commuters. For instance, annual season tickets for the Woking to London route could rise by £310 to £4,190, and an off-peak return journey from Manchester to London could cost £112.20 after an £8.30 increase.
Calls for Reform and Freeze on Fares
Norman Baker, director of external affairs at the Campaign for Better Transport and a former Liberal Democrat transport minister, urged the government to consider a fare freeze, similar to the one applied to fuel duty, until comprehensive ticketing reforms are implemented. The goal is to alleviate the burden on rail passengers facing potential substantial fare hikes.
Government’s Response
In response to concerns, a DfT spokeswoman emphasized the government’s commitment to protecting passengers from cost-of-living pressures. She assured that any fare increase, if implemented, would be delayed until March 2024, providing passengers with temporary relief by freezing fares for the entirety of January and February. This move aligns with the government’s plan to reduce inflation.
Regulated and Unregulated Fares
Approximately 45% of rail fares in Britain are subject to regulation by the Westminster, Scottish, and Welsh Governments. These regulated fares encompass season tickets for most commuter routes, certain off-peak return tickets for long-distance travel, and flexible tickets for urban transportation. Unregulated fare adjustments are primarily determined by train operators, but these changes tend to closely mirror alterations in regulated ticket prices due to government influence stemming from pandemic-related contracts.
Awaiting Plans from Scotland and Wales
As of now, the Scottish and Welsh governments have not disclosed their rail fare plans for 2024, leaving passengers in these regions awaiting further information. Meanwhile, fares in Northern Ireland are established by the operator Translink.