Campaigners warn hiking rail fares could push people away from train travel
Even a below inflation increase in rail fares could put people off travelling by train altogether, according to campaigners.
Norman Baker, director of external affairs at advocacy group Campaign for Better Transport, told Morning Wire that any increase to ticket prices will come “as a further blow to long-suffering passengers” after months “of cancellations and delays to train services”.
Set by the government at the beginning of each year, rail fares are usually calculated based on the retail price index (RPI) of the previous July.
As inflation rates have soared over the past twelve months, hitting 11.1 per cent in October, the government initially announced in August it wouldn’t hike fares to July’s 12.1 per cent inflation rate.
“We’re taking decisive action to support passengers with the rising cost of living – we won’t be increasing fares as much as the July RPI figure and are delaying the increase to March, freezing fares for January and February,” a DfT spokesperson reiterated today.
Morning Wire understands a decision will be announced in due course.
This is not the first time ministers have decided to cap fares to shield people from the cost-of-living crisis.
In December last year, the government capped prices to increase by 3.8 per cent maximum while introducing a four-week 50 per cent ticket price sale a few months later.
The importance of having rail fares that are affordable to passengers but economically sustainable by the industry has recently increased as passenger levels remain below pre-pandemic levels.
The latest DfT figures show passenger numbers are lagging below pre-pandemic levels by between 15 and 20 per cent as the rise of remote working reduces the need to travel.
According to Network Rail data, commuting and business travel levels remain respectively 50 and 45 per cent below 2019 levels. This, in turn, has led to the industry losing between £125m and £175m in revenue each month.
Lower passenger levels are not the only reason why the industry is haemorrhaging money, with ongoing strikes having dealt a £300m blow to rail companies since June.
Network Rail has also estimated that industrial action taking place in December and January will alone cost between £260m and £305m, threatening the industry’s long-term sustainability.
Workers at Network Rail and train operators have walked out 12 times over the past six months as part of a long-standing dispute over jobs and salaries.
Members of the unions RMT and Aslef will walk out between 6pm on Christmas Eve and 6am on 27 December, as well as throughout the first week of January.
RMT boss Mick Lynch has always maintained that the government has indemnified railway companies from the consequences of industrial action by sparing them “from being liable for any loss of revenue arising from the strikes”.