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Train fares rise 6% in new year Train fares rise 6% in new year
(20 minutes later)
Rail passengers are facing increases on regulated fares - including season tickets - of 6% on average, with some rises at double the rate of inflation.Rail passengers are facing increases on regulated fares - including season tickets - of 6% on average, with some rises at double the rate of inflation.
Standard off-peak tickets will go up by an average of 7% from 2 January 2009.Standard off-peak tickets will go up by an average of 7% from 2 January 2009.
The rises are based on July's inflation rate plus 1%, and firms say they are justified by the investment going in.The rises are based on July's inflation rate plus 1%, and firms say they are justified by the investment going in.
Unregulated tickets - including most leisure and advance fares - will vary, rising by 7% on average. The highest increase is CrossCountry, at 11%.Unregulated tickets - including most leisure and advance fares - will vary, rising by 7% on average. The highest increase is CrossCountry, at 11%.
Regulated fares are based on a set formula which limits increases to 1% above retail price index (RPI) inflation.Regulated fares are based on a set formula which limits increases to 1% above retail price index (RPI) inflation.
This means the increases are based on July's RPI of 5%, a figure which has since dropped to 4.2%.This means the increases are based on July's RPI of 5%, a figure which has since dropped to 4.2%.
Announcing the rise, Association of Train Operating Companies (Atoc) chief executive Michael Roberts said the increased revenue would be reinvested and passengers would benefit. Association of Train Operating Companies (Atoc) chief executive Michael Roberts said the increased revenue would be reinvested and passengers would benefit.
He insisted it would result in better value for taxpayers, falling in line with government policy to reduce railway subsidies by 40% between 2006-07 and 2013-14. UNREGULATED FARE RISES East Midlands trains - 7.4%First Capital Connect - 9%First Great Western - 6.6%First Scotrail - 6% South West Trains - 7.2%Virgin Trains - 7%National Express East Coast - 7.4%He insisted it would result in better value for taxpayers, falling in line with government policy to reduce railway subsidies by 40% between 2006-07 and 2013-14. UNREGULATED FARE RISES East Midlands trains - 7.4%First Capital Connect - 9%First Great Western - 6.6%First Scotrail - 6% South West Trains - 7.2%Virgin Trains - 7%National Express East Coast - 7.4%
The government's policy is to increase fares above inflation and reduce the contribution from the taxpayer.
Mr Roberts said: "Passengers in recent years have helped pay for 20% more services, and performance in the first half of this year is at the highest level since records began, with more than 90% of trains arriving on time.Mr Roberts said: "Passengers in recent years have helped pay for 20% more services, and performance in the first half of this year is at the highest level since records began, with more than 90% of trains arriving on time.
"Yet, since 1996, in real terms, overall rail fares have risen by just 5% and standard-class regulated fares are actually lower than they were in the year before privatisation.""Yet, since 1996, in real terms, overall rail fares have risen by just 5% and standard-class regulated fares are actually lower than they were in the year before privatisation."
The train companies said they were spending £800m on improving the system and that 90% of trains now arrived on time - the highest level since records began. He told BBC News that some people would see their ticket prices drop.
Mr Roberts added that the number of passengers travelling by rail was now the highest for 60 years. He said: "These fares changes actually mean that 15% of all fares will either be frozen or actually will fall.
"The January fare changes mean that train companies can continue investing in an even better railway and still offer a range of good deals for customers. "At the same time train companies will be investing in a £800m programme of improvements to trains and to stations, and I think that's actually good news for passengers."
"More than 80% of rail journeys are made using either a price-regulated or discounted ticket. And with the real costs of motoring up by over 25% since 1996, rail will continue to be an attractive option for millions of people every day," he said. 'Not welcome'
The government's policy is to increase fares above inflation and reduce the contribution from the taxpayer. But Anthony Smith, chief executive of watchdog Passenger Focus, said he was concerned about the above-inflation rises.
He said: "No fare rises are welcome in the current economic climate. These rises hark back to a time of high inflation and spiralling energy costs.
"The economy is different now, but the seemingly unstoppable rail-price express ploughs on.
"Some train companies deserve credit for limiting some unregulated rises. However, rises way above inflation are unjustified and unfair.
"These average fares will no doubt mask some very steep rises on particular routes."
He called for the government to become more involved and added: "We also need to look closely at establishing a fairer link between fares, investment and satisfactory performance.
"We cannot simply go on dumping costs on to the passenger in this way."