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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%. |
Rail Minister Theresa Villiers said "difficult decisions" on rail fares had been taken due to the budget deficit. | |
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. | 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' | '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. | 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. | "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". | 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. | 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 spokesman 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," said Alexandra Woodsworth from the Campaign for Better Transport. | |
She went on: "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. | |
'Long-term solution' | |
"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." |
But the rail minister said the scale of the deficit meant that the government "has had to take some very difficult decisions on future rail fares but the long-term solution is to get the cost of running the railways down" in order to "get a better deal for passengers and taxpayers". | |
"We are determined to do this and if we succeed, we hope to see the end of above-inflation rises in regulated fares," said Mrs Villiers. | |
She added that revenue from fares enables the government to "continue to deliver much-needed improvements on the rail network, improving conditions for passengers and helping to strengthen economic growth". | |
What do you think of the proposed rail fare increases? Will this affect your travel plans? Send us your comments and experiences using the form below. |