Financial News
Rail Fares: Anger As Commuters Face More Hikes
Rail commuters returning to work after the Christmas and New Year break have been hit by inflation-busting fare rises for the 10th year in a row.
Campaigners claim some season ticket holders have seen the cost of their journey rise by more than 50% since 2003 and are urging an end to the increases.
The TUC said average train fares have risen nearly three times faster than average wages since the beginning of the recession in 2008.
From January 2 the season ticket prices increase by an average of 4.2% and the overall rise for all tickets is 3.9%.
Amid delays and cancellations on the first day back to work after the holiday period, passengers voiced dismay at the annual fare rise. Some complained that services were rarely on time and often overcrowded, branding the latest ticket hike as "unfair".
The Campaign for Better Transport (CBT) said its research showed that in the last decade London commuters have seen:
:: Average season ticket costs increase by £1,300;
:: Fares grow 20% faster than wages;
:: Average costs in real terms increasing by £360.
It added that in the last 10 years rail fares had gone up substantially in all parts of England but that there were significant differences between routes over that period:
:: Annual fares from Ashford International in Kent to London have risen by more than £2,000;
:: Fares from Sevenoaks in Kent to London have increased by nearly 90%, from £1,660 to £3,112.
CBT chief executive Stephen Joseph said: "The impact of successive governments' policies on rail fares is appalling. It's truly shocking that we have deliberately made getting the train to work an extravagance that many struggle to afford.
"The time has come not just to stop the rises but to reduce fares."
CBT has launched a petition calling on the Government to name a date to end the above-inflation formula used for determining the annual rise and commit to reducing fares relative to inflation.
TUC general secretary Frances O'Grady said: "At a time when real wages are falling and household budgets are being squeezed, rail travellers are being forced to endure yet another year of inflation-busting fare increases.
"As well as having to shell out record amounts of money for their tickets, passengers also face the prospect of travelling on trains with fewer staff and having less access to ticket offices. They are being asked to pay much more for less."
Campaign group Railfuture added that some fares could be going up by around 11% or 12% this year, "with no perceptible improvement in service".
But train companies insisted rail fares in England still represented value for money.
The Association of Train Operating Companies (Atoc) said it recognised nobody liked paying more for their journey, but that railway funding could only come from taxpayers or from passengers "and the Government's policy remains that a bigger share must come from people who use the train".
Transport Minister Norman Baker said the Government had intervened to reduce the scale of the rises.
He said: "Family budgets are being squeezed, so that is why this coalition Government has taken proactive steps to cut the planned fare rises from 3% to 1% above inflation until 2014."
He went on: "We are engaged in the biggest rail investment programme since the 19th century and it is only right that the passenger, as well as the taxpayer, contributes towards that.
"In the longer term we are determined to reduce the cost of running the railways so that we can end the era of above-inflation fare rises."
But shadow transport secretary Maria Eagle, who joined transport unions in a demonstration against the latest hikes outside London's St Pancras station, said that the rail fare increases were "going straight into the train companies' profits".
The Labour MP added that most future investment would be paid for during the course of the next Parliament.
This year's fare increases came as a new survey by Hay Group revealed commuting by rail now costs workers 8% of their salaries on average.
The management consultancy warned that employees were becoming increasingly concerned about the amount of income they lose to travel, with commuting costs rising faster than both wages and inflation.
what do you think?

fish41
add to that the increased cost of fuel and they have you by the short and curlies both ways. The New World Order Govt want to screw every last penny of savings from those who have any and plunge the rest into greater debt (aka slavery).

blue side
The interview of Transport Minister and the Shadow on TV this morning was interesting and left me wondering how they cope with joined up writing given each blamed the other: as usual

John Andrew
Simple for rail Companies to justify rises most of the Government and there friemnds all have shares in it,so they preach get people out there cars etc etc yet public transport is one of the most expensive here than any where in the eU ,so if they need to increase fares etc to pay for repairs etc then maybe they should start cutting them by looking A: at there wages structure B: by looks of it they cannot afford hand it back to be a public owned transport

Michael Hawkins
:: Fares from Sevenoaks in Kent to London have increased by nearly 90%, from £1,660 to £3,112. Ât £4.27 each way per day - I wish my commute, currently £ 9.50 each way by car was that cheap The same people would not think twice about paying a similar amount for a Starbucks coffee

David Wragg
It is hard to see where the massive investment in the railways' is going. HS2 is not authorised yet and the IEP programme for high speed trains has been roundly criticised by the railway press as being over-priced and unwanted. Cross-Rail is under way but only benefits London. Across the country, many peope still have to travel on elderly Pacers that were cheap and nasty even when new. In any case, any well-run business includes modernisation as part of a rolling programe that is included in its costs.

LucienSolo1
I'm going to keep banging this drum of mine. There IS an alternative to being ripped off by the train companies. All you need to do is get organised. The ONLY way you are going to stop the greed is to STOP FEEDING IT. There must be others going to work on the same route as you and roughly the same times. Find out who there are and see if you can travel COLLECTIVELY using taxi/minbuses. You can even arrange to be picked up at the station. If taxi companies new they were going to get a regular fair, you could negotiate a much better deal and it would be much cheaper than the trains. I'm sick and tired of saying this but NATIONAL BOYCOTTS of greedy companies is the only answer. Surely I am not the ONLY person in the country to be right on this issue.

dave
Of course you are absolutely right...but remember, for many contributors to this site it takes far less effort to moan than it does to get of their backsides and do something about it. Many people make snide remarks about the French, but at least when there is something they do not like they are prepared to unite together and take action.

Martin Peacock
You are 100% correct on the principle. The problems will be in motivation and logistics.

John Stedman
Particularly the logistics. Not too many coach groups - never mind taxis - offer the convenience of a service every 20/30/60 minutes, 7 days a week, generally when you want it. It's cheaper, but you get what you pay for in general.

Kayleigh Dinabrok Taylor
I'm currently unemployed so of course they want me to work asap. Due to where I live I would have to commute yet no minimum wage job would pay enough for the 60quid a week train fares to the nearest town and still leave enough to live on!

Diane Rogers
Is there no where near your home where tou could work a school or a shop

Michael Hawkins
Diane Do not be niaeve I do not know where Kayleigh lives, but her problem is wide spread in rural areas, and semi rural areas. Local schools and shops have shut, most prefer to travel to large supermarkets miles away to shop There is limited public transport service if any often just 2 buses a day I took a job 75 miles from home as I am unable to get a job locally, there is no public transport for the commute - If I could sign on I possibly would my weekly fuel cost £100.00 - I am fortunate the company supplies the car, I pay the fuel.

Kate Harris
The government needs to do something about privately owned train companies. If in other countries my brother could get from one end of a country to the other for 1 euro, and in the States you pay for a seat, and not the opportunity to get on a train and stand (i know we can reserve seats on some lines here but other commuters rarely pay attention to the slip on the seat that says "reserved") then why do we have to put up with this rubbish? If the government is serious about pushing environmentally friendly, it needs to do something about the trains because it's just not worth the while for people like me who earn under 15k - if I took the train, I'd give up because it's less than half the price to drive the same distance. Not really helping the environment...

Martin Peacock
The Hays Management Consultancy has identified a very worrying point. These crippling costs are a discouragement to coming off benefit and getting a job. Worse, they could de-motivate those already in a job. The result is potential damage to the economy as a whole, regardless of what it does to the individuals on the receiving end. The government needs to conduct a very serious evaluation on this situation. The point of diminishing returns may not just be visible in the distance and coming towards us at speed. . It might already be here

IRONSTINE
the nearer the city u pay more on public transport, why should you subsidise commuters who live farther out, in this fairer big society?

Michael Hawkins
If I buy 1 pack of crisps, it cost more than buying a multi pack, in this fairer big society

John Stedman
Much as I like Norman Baker, I was under the impression that the Government were actually responsible for the level of fare increases, rather than intervening to reduce them. True, they did intervene on the latest increases, and reduced the planned increase in January (planned by whom?) when they realised that perhaps it was politically not the best course of action - rather like the escalator mechanism on fuel costs.

happymike CHESTER
"We must privatizes the railways to create competition ,it will more cost affective for the tax payer and cheaper"P.M. Margaret Thatcher.

ann davies
so could it be that if this government looked at how much salary some of the rail track workers enjoy (like some are on mega money) some of the tax payers money could then be diverted for all train users to enjoy .

Alan Todd
The rail companies ,power companies and all of the rest of utility companies should be made to pay less to investers in dividends and to keep prices down in this way.Instead of the public being made to pay all of the rises for these thingsbut i suppose that this government will not do this simple thingas it would hit the rich too hard.








john
9:32am on 2/1/2013
Do MPs receive free rail travel courtesy of the taxpayer?
Brian Holmes
9:47am on 2/1/2013
Of course they do.
t.bulgin
1:27pm on 2/1/2013
Didn't this gov do away with first class though ? Can't remember.
bjnk
11:55pm on 2/1/2013
tb, no mate they just moved the goal posts by saying if it works out cheaper than an anytime open ticket{most expensive} its ok, some from all parties abuse this loophole.