The government says it will cap the highest rail fare rises at inflation plus 2% from next year. Photograph: Dominic Lipinski/PA
Consumer groups and unions have condemned plans for inflation-busting hikes in rail fares in England, despite an overhaul of the pricing system intended to curb the biggest rises.
The government has announced that the highest rises will be capped from next year in an attempt to take the sting out of ticket prices increasing above inflation. While average fares will still go up by 4.1% in January, the ability of train operators to increase individual fares will be limited to an extra 2% above inflation, rather than the current 5% – removing a power that has meant some commuters have had to pay almost 10% more for their season tickets in recent years.
The government will also insist on the introduction of season tickets for part-time workers, so that people who make the same journey three or four days a week can qualify for substantial discounts, and a pilot scheme will test the sale of all long-distance tickets; currently, many single train journeys cost almost as much as a return.
The fares and ticketing review published by Patrick McLoughlin, the transport secretary, will set out a code of conduct for train companies, to be overseen by the regulator, to ensure passengers know they are getting the best deal for their journey. Consumer groups have warned that many passengers fail to buy the best option from ticket machines.
The Campaign for Better Transport welcomed the fares curb but said there was "still a gaping hole", with no change on annual above-inflation fare increases. Stephen Joseph, the campaign's chief executive, said: "Whilst trials for things like part-time season tickets are very welcome, the biggest issue has always been annual above-inflation fare increases and there is no change of policy on this. This is bitter news for everyone who relies on the train to get to work."
Andrew Adonis, a former Labour transport secretary, said the cap was less tight than the one he had imposed in 2009-10, dismissing it as "too little too late".
Bob Crow, leader of the RMT transport union, said: "This is a total con that will still leave the vast majority paying inflation-busting fares to pump up the profits of the private train operators.
"For a few it will feel like having your wallet nicked with the mugger then handing you a few bob back to buy a pint. Nobody will be fooled by this political stunt."
The government will also start testing "shoulder" fares at either end of the rush hour in an attempt to push commuters on to quieter trains. However, it has ruled out matching increases for the busiest commuter trains because fears were raised of politically toxic "superpeak" fares.
The coalition is trying to package the fares announcement as part of a broader campaign to position the government as trying to keep down the cost of living for "hardworking people".
McLoughlin said: "We're taking this action because we know how hard-pressed rail users are. They have had to shoulder some of the cost for our essential rail modernisation programme – without which the network would soon grind to a halt.
The Association of Train Operating Companies welcomed the announcement, saying: "Although the level of flex has always been a matter of government policy, the reduction being proposed is in line with that suggested by train companies and should help to encourage greater rail use."
Manuel Cortes, leader of the TSSA rail union, said: "There is no action whatsoever to actually end inflation-plus fare increases.
"McLoughlin is merely offering to hold passengers' coats while they keep getting mugged every year by the same set of spivs – the private rail firms."
Mary Creagh, the shadow transport secretary, said: "Over the last three years David Cameron has failed to stand up for working people, allowing train companies to hit passengers with inflation-busting fare rises of up to 9%. Far from addressing his failure, this is cold comfort for commuters – it has taken 18 months, delivers fare increases of up to 6% and is too little too late."
Commuters in Scotland will be spared real-terms price hikes, with fares set to rise in January by 3.1%, based on the formula of RPI plus 0%. The Welsh new year fare rise has yet to be announced.
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The government has announced that the highest rises will be capped from next year in an attempt to take the sting out of ticket prices increasing above inflation. While average fares will still go up by 4.1% in January, the ability of train operators to increase individual fares will be limited to an extra 2% above inflation, rather than the current 5% – removing a power that has meant some commuters have had to pay almost 10% more for their season tickets in recent years.
The government will also insist on the introduction of season tickets for part-time workers, so that people who make the same journey three or four days a week can qualify for substantial discounts, and a pilot scheme will test the sale of all long-distance tickets; currently, many single train journeys cost almost as much as a return.
The fares and ticketing review published by Patrick McLoughlin, the transport secretary, will set out a code of conduct for train companies, to be overseen by the regulator, to ensure passengers know they are getting the best deal for their journey. Consumer groups have warned that many passengers fail to buy the best option from ticket machines.
The Campaign for Better Transport welcomed the fares curb but said there was "still a gaping hole", with no change on annual above-inflation fare increases. Stephen Joseph, the campaign's chief executive, said: "Whilst trials for things like part-time season tickets are very welcome, the biggest issue has always been annual above-inflation fare increases and there is no change of policy on this. This is bitter news for everyone who relies on the train to get to work."
Andrew Adonis, a former Labour transport secretary, said the cap was less tight than the one he had imposed in 2009-10, dismissing it as "too little too late".
Bob Crow, leader of the RMT transport union, said: "This is a total con that will still leave the vast majority paying inflation-busting fares to pump up the profits of the private train operators.
"For a few it will feel like having your wallet nicked with the mugger then handing you a few bob back to buy a pint. Nobody will be fooled by this political stunt."
The government will also start testing "shoulder" fares at either end of the rush hour in an attempt to push commuters on to quieter trains. However, it has ruled out matching increases for the busiest commuter trains because fears were raised of politically toxic "superpeak" fares.
The coalition is trying to package the fares announcement as part of a broader campaign to position the government as trying to keep down the cost of living for "hardworking people".
McLoughlin said: "We're taking this action because we know how hard-pressed rail users are. They have had to shoulder some of the cost for our essential rail modernisation programme – without which the network would soon grind to a halt.
"Yet
most rail commuters do not have an alternative way of getting to work.
So it's right that, as our economy recovers, we try and relieve some of
the burden they bear."
McLoughlin said the government remained "as
determined as ever to end the era of above-inflation fares". Regulated
fares, set by the government – season tickets and off-peak return
tickets – have risen by 1% above inflation for the past decade. However,
the coalition, like Labour before it, has signalled it believes a
greater proportion of the cost of rail travel should be borne by
passengers. Taxpayer subsidies are running at around £4bn a year.The Association of Train Operating Companies welcomed the announcement, saying: "Although the level of flex has always been a matter of government policy, the reduction being proposed is in line with that suggested by train companies and should help to encourage greater rail use."
Manuel Cortes, leader of the TSSA rail union, said: "There is no action whatsoever to actually end inflation-plus fare increases.
"McLoughlin is merely offering to hold passengers' coats while they keep getting mugged every year by the same set of spivs – the private rail firms."
Mary Creagh, the shadow transport secretary, said: "Over the last three years David Cameron has failed to stand up for working people, allowing train companies to hit passengers with inflation-busting fare rises of up to 9%. Far from addressing his failure, this is cold comfort for commuters – it has taken 18 months, delivers fare increases of up to 6% and is too little too late."
Commuters in Scotland will be spared real-terms price hikes, with fares set to rise in January by 3.1%, based on the formula of RPI plus 0%. The Welsh new year fare rise has yet to be announced.
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