This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk/7741162.stm
The article has changed 10 times. There is an RSS feed of changes available.
Version 8 | Version 9 |
---|---|
Train fares to go up in new year | Train fares to go up in new year |
(about 6 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 and unregulated fares are to increase by averages of 6% and 7% respectively from 2 January 2009. | Regulated and unregulated fares are to increase by averages of 6% and 7% respectively from 2 January 2009. |
Train companies said the revenue would be reinvested, but watchdog Passenger Focus said some rises were unjustified. | Train companies said the revenue would be reinvested, but watchdog Passenger Focus said some rises were unjustified. |
Gordon Brown believed it was important customers got "good value for their money", said his spokesman. | Gordon Brown believed it was important customers got "good value for their money", said his spokesman. |
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. | 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%. |
'Special case' | 'Special case' |
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. | 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. |
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. | 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. |
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. | 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. |
"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." | "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." |
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 | 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. | 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. | 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". | 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, whose network covers 1500 miles (2414 km) and stretches from Aberdeen to Penzance and from Stansted to Cardiff, has the highest increase for its unregulated fares. | CrossCountry, whose network covers 1500 miles (2414 km) and stretches from Aberdeen to Penzance and from Stansted to Cardiff, has the highest increase for its unregulated fares. |
These include advance and leisure bookings, at 11%. By contrast, London Midland has frozen these fares. | These include advance and leisure bookings, at 11%. By contrast, London Midland has frozen these fares. |
Other companies with big unregulated-fare increases are First Capital Connect up an average of 9%, Chiltern up 7.5%, National Express East Coast up 7.4% and South West Trains up 7.2%. | Other companies with big unregulated-fare increases are First Capital Connect up an average of 9%, Chiltern up 7.5%, National Express East Coast up 7.4% and South West Trains up 7.2%. |
Michael Roberts of Atoc: 'Passengers want to see value for money' | Michael Roberts of Atoc: 'Passengers want to see value for money' |
Anthony Smith, chief executive of watchdog Passenger Focus, said it 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. | "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." |
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. | 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' | '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?" |
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. 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 | 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 bought unregulated fares were not penalised. | It suggested the government should compensate train companies so that passengers who bought unregulated fares were not penalised. |
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 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. |
RAIL COMPANY FARE RISES | RAIL COMPANY FARE RISES |
Proposed changes from 2 January 2009 | 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 | 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 |
Return to story | Return to story |