By Mark Smulian | 13 August 2013
Regulated train fares will rise by 4.1% in January, sparking claims that excessive increases will hit both the low paid and economic growth.
Under government policy to shift the balance of rail financing from taxpayers in general to passengers, train operators can increase regulated fares - mostly those covered by season tickets – by the Retail Prices Index inflation plus one percentage point.
The Office for National Statistics put RPI inflation in July – the month used to calculate rail frees – at 3.1%.
TUC general secretary Frances O’Grady said: 'Most rail season tickets will still go up by a wage-busting 4.1% next year.
‘This is good news for rail operators, who'll use increased fares to line the pockets of shareholders, but bad news for hard-pressed commuters who are having to hand over even more of their pay packets for poor quality services.’
Lobby group the Campaign for Better Transport said rail fares had outstripped wages growth by almost 14% since 2007. Chief executive Stephen Joseph said: ‘One of the surest ways of stamping on any green shoots of recovery is to price people off the trains and out of the jobs market.
‘For the sake of the economy we should end above-inflation fares increases now and start planning for fare reductions.’
But both the Government and train operators defended the scale of increases.
A Department for Transport spokesman said: ‘The government is investing record amounts into our railways, which will help deliver economic growth, improve performance and significantly boost passenger capacity.
‘However, we also recognise it is tough for passengers. That is why we are already limiting these rises by capping the average regulated fares increase at 1% in real terms.’
He added that unspecified ‘further measures to ensure greater fairness on fares for passengers’ would be revealed later this year.
The Association of Train Operating Companies chief executive Michael Roberts said above-inflation fare rises had supported ‘investment in more trains, better stations and faster services.
‘This is helping to drive passenger satisfaction to near record levels while seeking to reduce taxpayers’ contribution towards the cost of running the railways.’
