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| Version 1 | Version 2 |
|---|---|
| Inflation figures to set rail fare rises | Inflation figures to set rail fare rises |
| (about 1 hour later) | |
| Rail commuters are set to find out later how much their season tickets are likely to go up by next year, as the latest inflation figures are revealed. | Rail commuters are set to find out later how much their season tickets are likely to go up by next year, as the latest inflation figures are revealed. |
| July's RPI inflation figure, released at 09:30 BST, determines the rise in regulated fares, like season tickets. | July's RPI inflation figure, released at 09:30 BST, determines the rise in regulated fares, like season tickets. |
| RPI inflation for July is expected to be around 5%, meaning the average season ticket will go up by around 8%. | RPI inflation for July is expected to be around 5%, meaning the average season ticket will go up by around 8%. |
| The rises are part of the government's agenda to reduce the cost to the taxpayer of running the rail network. | The rises are part of the government's agenda to reduce the cost to the taxpayer of running the rail network. |
| For the last few years the formula for rail fare increases has generally been RPI inflation plus 1%, but for the next three years it is RPI plus 3%. | For the last few years the formula for rail fare increases has generally been RPI inflation plus 1%, but for the next three years it is RPI plus 3%. |
| The formula affects regulated fares, such as season tickets and long distance off-peak tickets. Some fares will go up by far more than the 8% average, because train companies are allowed to increase fares by another 5% on top, as long as that is balanced with reductions elsewhere. | The formula affects regulated fares, such as season tickets and long distance off-peak tickets. Some fares will go up by far more than the 8% average, because train companies are allowed to increase fares by another 5% on top, as long as that is balanced with reductions elsewhere. |
| Edward Welsh, corporate affairs director at the Association of Train Operating Companies (Atoc), said all the extra money raised will go to the government and not train companies. | |
| 'Difficult times' | |
| He told BBC Radio 4's Today programme the "good news" was that the money would help to sustain investment in the railway network. | |
| "It's about ensuring that there is money there to pay for improvements for more trains, for better stations, for faster services - and that's what passengers want," he said. | |
| Earlier, an Atoc spokesperson said companies knew these are "difficult financial times for many people". | |
| But that many fares needed to rise above inflation for the next three years to help pay for more trains, better stations and faster services. | |
| "Increasing the money raised from fares will mean that taxpayers contribute less to the running of the railways, whilst ensuring that vital investment can continue," the spokeman added. | |
| There are some exceptions to the formula. Scotrail is sticking to the RPI+1% formula, whilst Merseyrail will use RPI+0%. | There are some exceptions to the formula. Scotrail is sticking to the RPI+1% formula, whilst Merseyrail will use RPI+0%. |
| A combination of more people travelling, above-inflation fare rises and cost-cutting has led to rail users' contributions to the railways rising from £5bn in 2006/07 to £6.6bn in 2010/11, whilst over the same period the amount contributed by taxpayers has fallen £6.3bn to £4bn. | A combination of more people travelling, above-inflation fare rises and cost-cutting has led to rail users' contributions to the railways rising from £5bn in 2006/07 to £6.6bn in 2010/11, whilst over the same period the amount contributed by taxpayers has fallen £6.3bn to £4bn. |
| Campaigners though are due to protest at London's Waterloo station about the fare rises. | Campaigners though are due to protest at London's Waterloo station about the fare rises. |
| "Affordable rail travel is vital for passengers, for the environment and for our workforce. These massive fare rises will be a disaster for people already struggling with rising costs, and risk pricing those on lower incomes out of jobs in our major cities," said Alexandra Woodsworth from the Campaign for Better Transport. | "Affordable rail travel is vital for passengers, for the environment and for our workforce. These massive fare rises will be a disaster for people already struggling with rising costs, and risk pricing those on lower incomes out of jobs in our major cities," said Alexandra Woodsworth from the Campaign for Better Transport. |
| "The country simply can't afford fare rises on such a punitive scale. It's time to burst the bubble on inflation-busting fare hikes." | "The country simply can't afford fare rises on such a punitive scale. It's time to burst the bubble on inflation-busting fare hikes." |