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| Rail fares to rise by 5.9% from January | Rail fares to rise by 5.9% from January |
| (40 minutes later) | |
| Train fares will rise by an average of 5.9% in January 2012, the Association of Train Operating Companies has said. | Train fares will rise by an average of 5.9% in January 2012, the Association of Train Operating Companies has said. |
| In his Autumn Statement last month, Chancellor George Osborne capped fare increases at 6%, instead of the expected 8%. | In his Autumn Statement last month, Chancellor George Osborne capped fare increases at 6%, instead of the expected 8%. |
| Fare rises are linked to inflation, which is currently 5.2% as measured by the Retail Prices Index. | Fare rises are linked to inflation, which is currently 5.2% as measured by the Retail Prices Index. |
| Atoc said the fare increase would be used to pay for "new trains, faster services and better stations". | Atoc said the fare increase would be used to pay for "new trains, faster services and better stations". |
| "The long standing government approach to sustaining rail investment is to cut the contribution from taxpayers and increase the share paid for by passengers," said the group's chief executive Michael Roberts. | "The long standing government approach to sustaining rail investment is to cut the contribution from taxpayers and increase the share paid for by passengers," said the group's chief executive Michael Roberts. |
| Currently, passengers contribute about £6.5bn to the running of the railways, with taxpayers picking up the remaining £4bn. | Currently, passengers contribute about £6.5bn to the running of the railways, with taxpayers picking up the remaining £4bn. |
| Policy change | Policy change |
| The fare increases apply in England, Scotland and Wales, and take effect from Monday 2 January. | The fare increases apply in England, Scotland and Wales, and take effect from Monday 2 January. |
| Around half of all fares are set by the government formula of RPI inflation in July, plus 1%. | Around half of all fares are set by the government formula of RPI inflation in July, plus 1%. |
| In last year's Spending Review the government said it wanted to increase this to plus 3%, but last month the chancellor said he would not be implementing this change. | In last year's Spending Review the government said it wanted to increase this to plus 3%, but last month the chancellor said he would not be implementing this change. |
| The increase covers regulated fares such as season tickets for most commuter journeys, and off-peak fares on most intercity trains, Atoc said. | The increase covers regulated fares such as season tickets for most commuter journeys, and off-peak fares on most intercity trains, Atoc said. |
| Individual train companies set the remaining fares, which are known as unregulated tickets and include advance tickets and business fares at peak times. | Individual train companies set the remaining fares, which are known as unregulated tickets and include advance tickets and business fares at peak times. |
| Atoc said these fares were "heavily influenced" by government policy. | Atoc said these fares were "heavily influenced" by government policy. |
| In September, the then transport secretary Philip Hammond described UK rail fares as so expensive that trains had become a "rich man's toy". | In September, the then transport secretary Philip Hammond described UK rail fares as so expensive that trains had become a "rich man's toy". |
| Atoc said rail journey numbers had increased by 5% in the first nine months of this year, with demand now as high as it has ever been in peacetime since the 1920s. |