Rail tickets to go up by over 6% (From Daily Echo)
When news happens, text SDE and your photos or videos to 80360. Or contact us by email and phone.
Rail tickets to go up by 6.2 per cent
11:46am Tuesday 14th August 2012 in Business
Rail tickets to go up by over 6%
Hard-hit rail commuters face a greater-than-expected 6.2% hike in average fares in the new year after official figures revealed a shock rise in the inflation rate.
The retail prices index (RPI) figure for July, which is used to determine how much regulated rail fares including season and saver tickets are allowed to increase in 2013, rose to 3.2% from 2.8% the previous month, according to the Office for National Statistics.
The City had expected the rate to remain flat at 2.8%.
The average fare increase for England is calculated by adding 3% to RPI, meaning a hike of 6.2%, although some tickets can go up by a further five percentage points - or more than 11% - as long as they are balanced by cuts on other fares.
It comes as commuter groups have warned that passengers could see season ticket prices increase by over £1,000 in the next few years.
The greater-than-expected rise in RPI, which was accompanied by an increase in the closely watched consumer prices index (CPI) rate to 2.6% from 2.4%, was driven by hefty hikes in air fares, while there were fewer discounts from retailers who had already slashed prices in June to shift stock amid the wash-out weather.
The planned hike in average regulated ticket prices, which follows a similar increase for 2012, will mean that fares have risen by more than inflation for 10 years in a row. Governments in Wales and Scotland have indicated that regulated fares are likely to go up by one percentage point above RPI.
Unions, transport campaigners and rail passenger groups staged a day of action at railway stations across the country to protest against the "massive" hikes.
Stephen Joseph, chief executive of the Campaign for Better Transport, said the increases are "untenable" because fares will rise three times faster than salaries next year, which it claimed will damage the economic recovery. And unions said tens of thousands of rail commuters will have to pay more than £5,000 a year for their season tickets after the new rises come into effect.
Meanwhile, the rise in the rate of CPI brings to an end three months of falls, intensifying the squeeze on struggling families. The ONS said air fares, which are highly seasonal, rose 21.7% between June and July - the largest increase since 2004.
A Treasury spokesman said: "Inflation has halved since its peak in September but any increase is disappointing. The Government knows how tough things are for families at the moment and that is why we have reduced income tax, and frozen both council tax and fuel duty."
Southampton Itchen MP, John Denham, said: “Living costs are rising and hard-working families are finding it hard to make ends meet. For many the daily commute is now their biggest household bill. It’s time for the Tory-led Government to do something to help Southampton’s many commuters.
“Those already spending over £4,000 on a season ticket from Southampton Central to London are likely to be hit hard by these increases if they go ahead. Quite simply, the Tory-led Government should not be increasing fares using its current formula, which puts fares at 3% above inflation. It is far too high. Train companies should not be allowed to increase ticket prices by any more than one per cent above inflation across all routes.”
Comments(19)
Taskforce 141
says...
11:59am Tue 14 Aug 12
For a government keen to be clean how on earth can the justify these prices?
mtdiablo
says...
12:08pm Tue 14 Aug 12
userds5050
says...
12:41pm Tue 14 Aug 12
Murray mint wrote:What that rail fares are linked to RPI?
Speculation is it?
Murray mint
says...
12:44pm Tue 14 Aug 12
userds5050 wrote:No obviousely not, I was actually responding to an earlier version of the story that insinuated 10%. Strange goings on.
Murray mint wrote:What that rail fares are linked to RPI?
Speculation is it?
peenut81
says...
1:28pm Tue 14 Aug 12
You make the mistake of believing that this government has any intention of being 'clean'.
They just said that to win votes. Osbourne's first budget proved he (and the establishment) has no truck with the environmental/climat
e lobby and there has only been a reversal of green policy since May 2010
elvisimo
says...
2:07pm Tue 14 Aug 12
Taskforce 141 wrote:in some instances our train fares are 10 time that of europe.
Train fares are extortionate as they are (most expensive in Europe I believe). I recently looked at taking the family (of 4) to blackpool from southampton and the cheapest off peak fare was £450 - absolutely disgraceful, needless to say we help clog up the motorways and took the car! For a government keen to be clean how on earth can the justify these prices?
The arguement of high fuel prices went out of the window years ago and funnily enough does dont get mentioned anymore.
The ticket prices are a disgrace as is the service. Yet then we commit to spending a few billion on HS2 linking london to birmingham which again will be paid for in fare rises.
Cheaper to drive everywhere nowadays.
Torchie1
says...
2:33pm Tue 14 Aug 12
peenut81 wrote:The policy of RPI + 3% has been running for at least ten years after being introduced by the last Labour government. The plan is to reduce taxpayers subsidies from 50% to 25% over the long term. As pointed out in the lead article, fares on some lines can go up by more if they are balanced out by fare cuts on other lines. As for being 'green' why don't you spend the afternoon trying to find a 'green' plan (Wind-farm, Bio-Mass etc) that hasn't been met with a determined NIMBY lobby which has held it up or defeated it. The number of true 'greens' would partially fill a Telephone Box and all the other 'greens' want the policies as long as it doesn't affect them, their pocket or their space.
@taskforce 141
You make the mistake of believing that this government has any intention of being 'clean'.
They just said that to win votes. Osbourne's first budget proved he (and the establishment) has no truck with the environmental/climat
e lobby and there has only been a reversal of green policy since May 2010
dopplershift
says...
2:38pm Tue 14 Aug 12
Torchie1 wrote:Spot on.
peenut81 wrote: @taskforce 141 You make the mistake of believing that this government has any intention of being 'clean'. They just said that to win votes. Osbourne's first budget proved he (and the establishment) has no truck with the environmental/climat e lobby and there has only been a reversal of green policy since May 2010The policy of RPI + 3% has been running for at least ten years after being introduced by the last Labour government. The plan is to reduce taxpayers subsidies from 50% to 25% over the long term. As pointed out in the lead article, fares on some lines can go up by more if they are balanced out by fare cuts on other lines. As for being 'green' why don't you spend the afternoon trying to find a 'green' plan (Wind-farm, Bio-Mass etc) that hasn't been met with a determined NIMBY lobby which has held it up or defeated it. The number of true 'greens' would partially fill a Telephone Box and all the other 'greens' want the policies as long as it doesn't affect them, their pocket or their space.
elvisimo
says...
3:33pm Tue 14 Aug 12
Torchie1 wrote:labour idiots were RPI plus 1% current smug conservative fools are RPI plus 3% and then an additional 5% on unregulated fares. Whole system is shot to bits.
peenut81 wrote: @taskforce 141 You make the mistake of believing that this government has any intention of being 'clean'. They just said that to win votes. Osbourne's first budget proved he (and the establishment) has no truck with the environmental/climat e lobby and there has only been a reversal of green policy since May 2010The policy of RPI + 3% has been running for at least ten years after being introduced by the last Labour government. The plan is to reduce taxpayers subsidies from 50% to 25% over the long term. As pointed out in the lead article, fares on some lines can go up by more if they are balanced out by fare cuts on other lines. As for being 'green' why don't you spend the afternoon trying to find a 'green' plan (Wind-farm, Bio-Mass etc) that hasn't been met with a determined NIMBY lobby which has held it up or defeated it. The number of true 'greens' would partially fill a Telephone Box and all the other 'greens' want the policies as long as it doesn't affect them, their pocket or their space.
ajw1986
says...
3:37pm Tue 14 Aug 12
bazzeroz
says...
3:43pm Tue 14 Aug 12
chunky_lover
says...
4:05pm Tue 14 Aug 12
Surely better not to get banned from driving in the first place!
ajw1986
says...
4:27pm Tue 14 Aug 12
bazzeroz wrote:i like the idea of a massive passenger type strike/boycott. We'll get there when the gates are all open and sleep in the waiting room till morning then just go on the train. :)
Protest, boycott. It's the only way anyone will listen. Once the pound in the till is affected they'll listen! If everyone on say, the Southampton - London 0715 stormed on to the train without paying, what would happen? It would either not leave the station or all of you would be arrested all, 1000 of you. Yeah right.
And chunky_lover..... i don't drink or drive. Ironically too expensive! Aha!!
I'll just stay in my flat for my whole life as i can't afford to go by train or car.
AndyAndrews
says...
5:17pm Tue 14 Aug 12
Fatty x Ford Worker
says...
8:10pm Tue 14 Aug 12
Brock_and_Roll
says...
9:57pm Tue 14 Aug 12
A campaign of non-compliance is a brilliant idea but we need someone full of charisma to get people involved and motivated. Any volunteers? (sorry Southy)
One final point, Ann Gloag and Brian Souter who are the founders and major shareholders of Soth West Trains owners, claim to be active born-again christians yet they are involved in some of the most greedy business practices imaginable exploiting their monopoly position to the max! In the unlikely event the pair read this, all I will say is "Mark 10:25" - you guys are going down!
Georgem
says...
10:06pm Tue 14 Aug 12
chunky_lover wrote:This just in: people use the train for reasons other than "banned for drink-driving". In other news, Echo readership still generally unable to think collective way out of paper bag.
Right, why are people moaning. At the end of the day it was their choice to drink and drive, therefore it is their choice to take the train.
Surely better not to get banned from driving in the first place!
Seriously Not
says...
1:22pm Wed 15 Aug 12
Murray mint says...
11:52am Tue 14 Aug 12