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Train fares set to fall in 2010 Train fares set to fall in 2010
(10 minutes later)
Regulated UK rail fares are set to fall by 0.4% next year after a key inflation measure remained near a record low.Regulated UK rail fares are set to fall by 0.4% next year after a key inflation measure remained near a record low.
Retail Prices Index (RPI) inflation was -1.4% in July, after hitting a record low of -1.6% in the previous month.Retail Prices Index (RPI) inflation was -1.4% in July, after hitting a record low of -1.6% in the previous month.
Increases in regulated commuter rail fares are pegged to the RPI figure, plus an increase of 1%.Increases in regulated commuter rail fares are pegged to the RPI figure, plus an increase of 1%.
"For the first time in a generation passengers across the country will see their fares fall," Transport Secretary Lord Adonis said."For the first time in a generation passengers across the country will see their fares fall," Transport Secretary Lord Adonis said.
Last year, the July figure for RPI was 5%, meaning that rail prices this year rose by 6%.Last year, the July figure for RPI was 5%, meaning that rail prices this year rose by 6%.
'Welcomed''Welcomed'
In 2010, the rules on regulated fares change, with most rail companies having the limit of RPI plus 1% imposed on them. Previously, train operators have been allowed to increase individual regulated fares by as much as 6% over the RPI rate.In 2010, the rules on regulated fares change, with most rail companies having the limit of RPI plus 1% imposed on them. Previously, train operators have been allowed to increase individual regulated fares by as much as 6% over the RPI rate.
TYPES OF FARES Regulated fares refer to season tickets and saver ticketsUnregulated fares include cheap-day saver and off-peak returns, and some advance purchase tickets UK inflation rate stays at 1.8%TYPES OF FARES Regulated fares refer to season tickets and saver ticketsUnregulated fares include cheap-day saver and off-peak returns, and some advance purchase tickets UK inflation rate stays at 1.8%
"This means most regulated fares will fall in line with the national fare change, which will be welcomed by passengers," Lord Adonis said."This means most regulated fares will fall in line with the national fare change, which will be welcomed by passengers," Lord Adonis said.
Regulated fares refer to weekly and monthly season tickets in commuter areas, where the Department For Transport (DFT) keeps prices in check by means of fares 'baskets' .Regulated fares refer to weekly and monthly season tickets in commuter areas, where the Department For Transport (DFT) keeps prices in check by means of fares 'baskets' .
Sixty percent of all train tickets are regulated fares, according to the DFT.Sixty percent of all train tickets are regulated fares, according to the DFT.
Two train companies, Southeastern and West Yorkshire PTE, are exempt from the change in rules.Two train companies, Southeastern and West Yorkshire PTE, are exempt from the change in rules.
Both will allowed to raise fares by 3% on top of the RPI rate from January to fund additional investment in services in those areas, the the DFT said. Both will allowed to raise fares by 3% on top of the RPI rate from January to fund additional investment in services in those areas, the DFT said.
Rail fares have risen by 5% in real terms since 1997.Rail fares have risen by 5% in real terms since 1997.
Unregulated faresUnregulated fares
However, there are concerns that unregulated rail fares will surge as train companies seek to recoup the money lost from falling season ticket prices.However, there are concerns that unregulated rail fares will surge as train companies seek to recoup the money lost from falling season ticket prices.
Some rail firms have raised fares by as much as 11% recently on advance ticket purchases. First Great Western announced increases of up to 20% on some off-peak services last week.Some rail firms have raised fares by as much as 11% recently on advance ticket purchases. First Great Western announced increases of up to 20% on some off-peak services last week.
"We expect a wave of companies now to try and make the passengers pay for January's fares cut by jacking up the unregulated off-peak fares in September," said Gerry Doherty, head of the TSSA rail union."We expect a wave of companies now to try and make the passengers pay for January's fares cut by jacking up the unregulated off-peak fares in September," said Gerry Doherty, head of the TSSA rail union.
"They will also hike first class and advance fares as well because these are not controlled by the RPI formula.""They will also hike first class and advance fares as well because these are not controlled by the RPI formula."
Mr Doherty also expects rail companies to raise prices at train station car parks.Mr Doherty also expects rail companies to raise prices at train station car parks.
There are also fears that several train companies will not be able to afford cutting the price of fares and may run into financial difficulties.There are also fears that several train companies will not be able to afford cutting the price of fares and may run into financial difficulties.
The BBC learned in February that the government had rejected a request from train companies to make sure fares stay rising, even in the event of deflation.The BBC learned in February that the government had rejected a request from train companies to make sure fares stay rising, even in the event of deflation.
RAIL PRICE INCREASES 1997-2008 1997 is the first year after the entire rail network was privatised Regulated fares, e.g. season tickets and longer-distance, off-peak fares, are capped by the government at 1% above inflation, as measured by the Retail Price Index. Prior to 2004 they were capped at 1% below inflation. Unregulated fares, e.g. most leisure fares including what used to be known as cheap day returns, and advance tickets, are not pegged to inflationRAIL PRICE INCREASES 1997-2008 1997 is the first year after the entire rail network was privatised Regulated fares, e.g. season tickets and longer-distance, off-peak fares, are capped by the government at 1% above inflation, as measured by the Retail Price Index. Prior to 2004 they were capped at 1% below inflation. Unregulated fares, e.g. most leisure fares including what used to be known as cheap day returns, and advance tickets, are not pegged to inflation