Train fares to increase in new year

Train fares are set to rise again in the new year by around 2.8 per cent, according to the Retail Price Index for July announced on Wednesday (14 August).

Published by the Office for National Statistics, the RPI is used by governments to peg inflationary rises to regulated rail fares (around half of all fares) the following January. Over the last 10 years, the cumulative fare increase has been 37%.

The latest fare rise will affect commuters all over the country, coming into place on 2 January 2020. All regulated fares will increase, including all weekly, monthly and annual season tickets purchased by commuters in the UK.

Money from fares broadly covers the cost of running the railway – 98p in every £1 – meaning that funding from the public and private sectors can go into improving the railway. 

Irina Iovita, CEO of Commuter Club, said: “The cost of commuting in the UK is one of the highest in the world. Commuters told us commuting is in their top three expenses and, with real wages being stagnant at best, commuting is becoming less affordable every year.

“The rail industry must consider alternatives to increasing prices by 3% every year. As we’ve seen in many industries, innovation and technology are the key to lowering costs and passing these benefits to the end consumer.

“It’s time for the industry to deliver fair fares to its most loyal, but frequently forgotten, customers: the commuters.”

Robert Nisbet, Director of Nations and Regions for the Rail Delivery Group, which represents rail companies, said: “No one wants to pay more to get to work but by holding rises down to no more than inflation, government is ensuring that money from fares continues to cover almost all of the day-to-day costs of running rail services. This means private sector and taxpayer money can go towards improving services for the long term.

“We know we have more to do to deliver the reliable services passengers expect but rail users across the country are already seeing and feeling the benefits of this investment with new trains and more services running across the country. 

“People also want simpler, better value fares and we want to work with the government to deliver our proposals for reforming today’s outdated system to make fares easier for all.”

The Rail Delivery Group has updated its ‘Rail Fares Explained’ guide which provides key information about rail fares, including where money from fares goes. 

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