The UK government has revealed its plan to once again raise regulated train fares in England below the rate of inflation for the upcoming year. This decision comes as an effort to provide some relief to individuals grappling with the escalating cost of living. A similar intervention was implemented in 2023 to address the financial strain faced by commuters.
The anticipated fare increases will be deferred until March 2024, a departure from the usual January commencement, which was the norm prior to the Covid-19 pandemic. Approximately 45% of fares fall under the category of regulated fares, which encompass season tickets on most commuter routes, certain off-peak return tickets for long-distance travel, and anytime tickets within major cities.
Before the pandemic, these regulated fares were traditionally raised in January each year, with adjustments based on the Retail Prices Index (RPI) inflation measurement from the previous July, usually consisting of RPI plus 1%. The most recent RPI figures indicate that inflation in June stood at 10.7%, with expectations that it will be around 9% for July.
While the specific percentage of the upcoming increase remains uncertain, the government’s decision to limit the fare hike aligns with the economic uncertainty posed by the persistently high UK inflation rate. Despite signs of inflation easing, the public continues to grapple with rising costs of essentials such as food and services. This financial strain is further exacerbated by increasing interest rates, resulting in higher borrowing costs.
A spokesperson from the Department for Transport (DfT) underscored the government’s commitment to shielding passengers from the strain of rising living expenses. Transport Focus, a passenger watchdog, acknowledged that while fare hikes are generally unpopular, passengers will likely be relieved that the increases will be capped below the Retail Prices Index and deferred until March of next year.
Pressure groups, however, maintain differing stances on the issue. Campaign for Better Transport called for a freeze on rail fares until promised ticketing reforms are implemented, while the DfT vowed in 2021 to simplify the complex ticketing system to facilitate easier decision-making for travellers. Overhauls to the ticketing system, including the introduction of “single leg pricing” and flexi-season tickets, have commenced but not fully taken effect.
Amidst these discussions, rail passengers have faced challenges due to strikes and disruptions. Workers have demanded pay raises that reflect the soaring cost of living, all while striving to prevent job cuts and changes to working conditions. The Scottish and Welsh governments are yet to announce their policies regarding rail fare increases for the upcoming year.
