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Rail fares to rise by up to 3.6% Rail fares to rise by up to 3.6%
(35 minutes later)
Millions of rail users in the UK will see a 3.6% increase in regulated rail fares from January 2018.Millions of rail users in the UK will see a 3.6% increase in regulated rail fares from January 2018.
Train operators can raise fares by as much as the Retail Prices Index (RPI) figure for July. This figure is the highest since 2011, when it was 5%.Train operators can raise fares by as much as the Retail Prices Index (RPI) figure for July. This figure is the highest since 2011, when it was 5%.
Passenger groups said commuters would be worst-hit, and suggested that the RPI measure should be scrapped.Passenger groups said commuters would be worst-hit, and suggested that the RPI measure should be scrapped.
The most widely watched and used figure, the Consumer Prices Index (CPI), was unchanged at 2.6%.The most widely watched and used figure, the Consumer Prices Index (CPI), was unchanged at 2.6%.
The figures come from the Office for National Statistics (ONS).The figures come from the Office for National Statistics (ONS).
It said the CPI measure was flat as a fall in fuel prices had offset price rises for food, clothing and household goods. It added that prices at the factory gate had been kept in check by lower prices for chemicals and vehicles.
There has also been a fall in house prices over the year, mainly, said the ONS, because of the south and east of England, which had seen "particularly pronounced" slowdowns in the last year.
'Not good'
The RPI measure has been replaced by the CPI as the approved "National Statistic" benchmark for changes to most Government controlled funding. The CPI was first introduced in 1997.
The ONS' James Tucker, said the body was aware of the drawbacks of using RPI as a benchmark: "We know there will be a focus on the RPI this month, but the National Statistician has been clear it is not a good measure and we do not recommend its use.
The rises will affect "anytime" and some off-peak fares as well as season tickets in England and Wales.The rises will affect "anytime" and some off-peak fares as well as season tickets in England and Wales.
In Scotland, it is mainly commuters who will be affected, with off-peak fares rising by a smaller amount.In Scotland, it is mainly commuters who will be affected, with off-peak fares rising by a smaller amount.
The Scottish government currently limits rises in off-peak fares to RPI minus 1%.The Scottish government currently limits rises in off-peak fares to RPI minus 1%.
There are no plans for increases in Northern Ireland.There are no plans for increases in Northern Ireland.
Unregulated fares, which include super off-peak travel and advance tickets, will be set in December.Unregulated fares, which include super off-peak travel and advance tickets, will be set in December.
Transport Focus, which represents the interests of passengers, said rail users were already fed up with getting poor value for money.Transport Focus, which represents the interests of passengers, said rail users were already fed up with getting poor value for money.
"Wages are not keeping pace with inflation and performance remains patchy," said a spokesperson for the group."Wages are not keeping pace with inflation and performance remains patchy," said a spokesperson for the group.
"Passengers, especially commuters, face potential strike action, the consequences of the continual rise in passenger numbers, and disruption caused by railway upgrades.""Passengers, especially commuters, face potential strike action, the consequences of the continual rise in passenger numbers, and disruption caused by railway upgrades."
Transport Focus said it would also like to see the RPI measure replaced by the Consumer Prices Index (CPI), which is typically lower than RPI. Transport Focus said it would like to see the RPI measure being replaced by the Consumer Prices Index (CPI), to calculate rail fare increases. The CPI is usually lower than RPI.
'Fairly balanced'
The government said fare increases were justified by improvements to the network.
"We are investing in the biggest rail modernisation programme for over a century to improve services for passengers - providing faster and better trains with more seats," a spokesperson for the Department for Transport said.
"We have always fairly balanced the cost of this investment between the taxpayer and the passenger."
The Rail Delivery Group, which represents train operators, said there would be an extra 170,000 seats for commuters by the end of 2019.
The Department for Transport also rejected the idea of using CPI to determine price rises, saying RPI was used across the rail industry - for example in calculating the cost of running train services.
But the ONS' James Tucker said it was not in favour of using RPI as a benchmark: "We know there will be a focus on the RPI this month, but the National Statistician has been clear it is not a good measure and we do not recommend its use."
House prices fall
The RPI measure has been replaced over the years by the CPI as the approved "National Statistic" benchmark for changes to most Government-controlled funding. The CPI was first introduced in 1997.
The CPI figures were also released on Tuesday along with the RPI.
CPI was flat because a fall in fuel prices had offset price rises for food, clothing and household goods. The ONS added that prices at the factory gate had been kept in check by lower prices for chemicals and vehicles.
There has also been a fall in house prices over the year, mainly, said the ONS, because of the south and east of England, which had seen "particularly pronounced" slowdowns in the last year.
Ben Brettell, senior economist at stockbrokers Hargreaves Lansdown, said the CPI number suggested inflation may have have stopped its post-Brexit surge: "Last month's unexpected fall to 2.6% raised hopes that UK inflation had peaked, as the Brexit-induced weakness in the pound started to fade.
"It now looks quite possible inflation has peaked, and will fall back further incoming months."
A Treasury spokesperson, said: "Although inflation is likely to start falling next year, we understand some families are concerned today about the cost of living. That is why we have given the lowest paid a pay rise through the National Living Wage and are cutting taxes for 31 million people."
Analysis: Richard Westcott, transport correspondentAnalysis: Richard Westcott, transport correspondent
Oh the irony... regulated fares were meant to be the government's way of stopping private rail firms from overcharging passengers.Oh the irony... regulated fares were meant to be the government's way of stopping private rail firms from overcharging passengers.
They apply to tickets where people don't have much choice but to go by train: commuting into big cities, for example.They apply to tickets where people don't have much choice but to go by train: commuting into big cities, for example.
But for many years, ministers have deliberately used the system to put prices up anyway. Why? Because they want passengers to pay a bigger chunk of the rail bill, so that the government pays less.But for many years, ministers have deliberately used the system to put prices up anyway. Why? Because they want passengers to pay a bigger chunk of the rail bill, so that the government pays less.
Fares used to account for about half the cost of running our trains. Today it's about 70%.Fares used to account for about half the cost of running our trains. Today it's about 70%.
It does mean, of course, that people who don't commute by train, which is most of the country, pay less to subsidise the system.It does mean, of course, that people who don't commute by train, which is most of the country, pay less to subsidise the system.
But that's little consolation to workers who've faced consistent price rises that have often outpaced their salary. Even allowing for inflation, rail fares have gone up by about 25% since the mid-1990s.But that's little consolation to workers who've faced consistent price rises that have often outpaced their salary. Even allowing for inflation, rail fares have gone up by about 25% since the mid-1990s.
I've spoken to many passengers - often young people at the start of their careers - who're on the brink of changing jobs because they can't afford the increases.I've spoken to many passengers - often young people at the start of their careers - who're on the brink of changing jobs because they can't afford the increases.
'Fairly balanced'
The government said fare increases were justified by improvements to the network.
"We are investing in the biggest rail modernisation programme for over a century to improve services for passengers - providing faster and better trains with more seats," a spokesperson for the Department for Transport said.
"We have always fairly balanced the cost of this investment between the taxpayer and the passenger."
The Rail Delivery Group, which represents train operators, said there would be an extra 170,000 seats for commuters by the end of 2019.
The Department for Transport also rejected the idea of using CPI to determine price rises.
It said RPI was used across the rail industry - for example in calculating the cost of running train services.
Are you affected by the fare increases? Do you pay more than £5,000 on rail fares? You can email haveyoursay@bbc.co.uk with your experiences.Are you affected by the fare increases? Do you pay more than £5,000 on rail fares? You can email haveyoursay@bbc.co.uk with your experiences.
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