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Train fares to go up in new year Train fares to go up in new year
(about 2 hours later)
Rail passengers face fare rises in the new year - with some tickets in England, Scotland and Wales going up by double the rate of inflation. Rail passengers face fare rises in the new year, with some tickets in England, Scotland and Wales going up by double the rate of inflation.
Regulated fares - including season tickets - are due to increase by an average of 6% from 2 January 2009. Regulated and unregulated fares are to increase by averages of 6% and 7% respectively from 2 January 2009.
Unregulated tickets - including most leisure and advance fares - will rise by 7% on average, with some rising 11%. Train companies said the revenue would be reinvested, but watchdog Passenger Focus said some rises were unjustified.
Train companies say the revenue will be reinvested, but watchdog Passenger Focus says some rises are unjustified. Gordon Brown believed it was important customers got "good value for their money", said his spokesman.
Regulated fares are based on a set formula which limits increases to 1% above retail price index (RPI) inflation. Regulated fares - including season tickets - are generally based on a set formula which limits increases to 1% above retail price index (RPI) inflation, although there are some exceptions.
The government's policy is to increase fares above inflation and reduce the contribution from the taxpayer.The government's policy is to increase fares above inflation and reduce the contribution from the taxpayer.
The increases are based on July's RPI of 5%, a figure which has since dropped to 4.2%.The increases are based on July's RPI of 5%, a figure which has since dropped to 4.2%.
Some lower fares 'Special case'
Association of Train Operating Companies (Atoc) chief executive Michael Roberts said passengers would benefit from the reinvestment, while taxpayers would receive better value. However, passengers reliant on Southeastern services between London and Kent and Sussex will see their fares rise by an average of 8%, which is 2% more than the national average.
The changes fall in line with government policy to reduce railway subsidies by 40% between 2006-07 and 2013-14, he said. SOME UNREGULATED FARE RISES CrossCountry - 11%East Midlands trains - 7.4%First Capital Connect - 9%First Great Western - 6.6%First Scotrail - 6% London Midland - 0%South West Trains - 7.2%Virgin Trains - 7%National Express East Coast - 7.4% This is because the company's own regulated fare formula is RPI plus 3%. The firm said it needed extra funds to pay for high-speed domestic services in Kent due to be introduced next year.
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. Responding to the rises, the prime minister's spokesman said: "It is clear that passengers do have concerns about the value for money they receive from train companies.
"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." "It is a matter for the rail companies to explain why they have made the decisions they have made, but we want to make sure passengers are getting good value for money." name="text">
If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery? Gerry DohertyTSSA Full list of charges
But Association of Train Operating Companies (Atoc) chief executive Michael Roberts said passengers would benefit from the reinvestment, while taxpayers would receive better value.
The changes fall in line with government policy to reduce railway subsidies by 40% between 2006-07 and 2013-14, he said.
Mr Roberts said since 1996 overall rail fares had risen by 5% in "real terms".
Some people would see their ticket prices drop, he told BBC News.Some people would see their ticket prices drop, he told BBC News.
"These fares changes actually mean that 15% of all fares will either be frozen or actually will fall."These fares changes actually mean that 15% of all fares will either be frozen or actually will fall.
"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.""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."
CrossCountry has the highest increase for its unregulated fares at 11%, while London Midland has frozen its unregulated fares so prices will go down 5%. CrossCountry has the highest increase for its unregulated fares, which include advance and leisure bookings, at 11%, while London Midland has frozen these fares meaning their prices will go down by 5%.
'Not welcome' Michael Roberts of Atoc: 'Passengers want to see value for money'
Anthony Smith, chief executive of watchdog Passenger Focus, said he was concerned about the above-inflation rises. Anthony Smith, chief executive of watchdog Passenger Focus, said it was concerned about the above-inflation rises.
He said: "No fare rises are welcome in the current economic climate.He said: "No fare rises are welcome in the current economic climate.
"Some train companies deserve credit for limiting some unregulated rises. However, rises way above inflation are unjustified and unfair. If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery? Gerry DohertyTSSA "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.""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. Calling for the government to become more involved, he 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.""We cannot simply go on dumping costs on to the passenger in this way."
'Freeze fares'
Union leaders and opposition parties said the government should have intervened.Union leaders and opposition parties said the government should have intervened.
Gerry Doherty, leader of transport union TSSA, said: "If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery?"Gerry Doherty, leader of transport union TSSA, said: "If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery?"
Michael Roberts of ATOC: 'Passengers want to see value for money'
Shadow transport secretary Theresa Villiers said the government had let down passengers by failing to provide them with "value for money".Shadow transport secretary Theresa Villiers said the government had let down passengers by failing to provide them with "value for money".
Passengers were putting up with "crisis levels of overcrowding as well as rising fares", with the most packed trains running at over 170% capacity, she said. Passengers were putting up with "crisis levels of overcrowding as well as rising fares", with the most packed trains running at over 170% capacity, she said. We've also committed £15bn to support the railways in the next five years - including a £10 billion investment to increase capacity Department for Transport spokesman
The Liberal Democrats called for a freeze in regulated rail fares for a year, to be paid for by cuts to the roads-building budget.The Liberal Democrats called for a freeze in regulated rail fares for a year, to be paid for by cuts to the roads-building budget.
It suggested the government should compensate train companies so that passengers who buy unregulated fares were not penalised. It suggested the government should compensate train companies so that passengers who bought unregulated fares were not penalised.
Working together
This week the Transport Secretary Geoff Hoon asked train companies to bear in mind the current economic climate when calculating the new fares.This week the Transport Secretary Geoff Hoon asked train companies to bear in mind the current economic climate when calculating the new fares.
The Department for Transport said the government has worked with train operators to simplify the ticketing system. The Department for Transport said the government worked with train operators to simplify the ticketing system.
A spokesman said the capped, regulated fares accounted for almost two-thirds of all rail journeys.A spokesman said the capped, regulated fares accounted for almost two-thirds of all rail journeys.
"We've also committed £15bn to support the railways in the next five years - including a £10 billion investment to increase capacity," he said. "We've also committed £15bn to support the railways in the next five years - including a £10 billion investment to increase capacity," he said. name="table">
He added the government would continue to work with Passenger Focus and was committed to improving "transparency and confidence in the fares system."

class="data466">RAIL COMPANY FARE RISES

Proposed changes from 2 January 2009

Train company Avge regulated rise Avge unregulated rise Arriva Trains Wales 6% 6% c2c 6% 6% Chiltern Railways 6% 7.50% CrossCountry 6% 11% East Midlands Trains 6% 7.40% First Capital Connect 6% 9% First Great Western 6% 6.60% First ScotRail 6% 6% First TransPennine Express 6% 6.40% London Midland 6% 0% Merseyrail 5% 5% National Express East Anglia 6% 6% National Express East Coast 6% 7.40% Northern Rail 6% 7% Southeastern 8% 6% Southern 6% 6% South West Trains 6% 7.20% Virgin Trains 6% 7% Average 6% 7% Source: Atoc
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Will you be affected by these changes? Will you have to make other travel arrangements when the fares increase? Are you considering changing jobs due to higher prices?Will you be affected by these changes? Will you have to make other travel arrangements when the fares increase? Are you considering changing jobs due to higher prices?
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