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Regulated rail fares to increase by 3.5% in 2015 | Regulated rail fares to increase by 3.5% in 2015 |
(about 1 hour later) | |
Regulated rail fares will rise by 3.5% from January next year, following the release of July's inflation figures. | Regulated rail fares will rise by 3.5% from January next year, following the release of July's inflation figures. |
Under the formula, average fares in England and Wales are due to go up by July's RPI measure of inflation, plus 1%. | |
RPI - the Retail Prices Index - was 2.5% last month, according to the Office for National Statistics (ONS). | RPI - the Retail Prices Index - was 2.5% last month, according to the Office for National Statistics (ONS). |
Labour accused the government of 'ripping off' passengers, but the government defended the rise. | Labour accused the government of 'ripping off' passengers, but the government defended the rise. |
Regulated fares have increased by more than the rate of inflation in most years since 2004. | Regulated fares have increased by more than the rate of inflation in most years since 2004. |
Such fares include season tickets, "anytime" single tickets around major cities, and off-peak inter-city return tickets. | Such fares include season tickets, "anytime" single tickets around major cities, and off-peak inter-city return tickets. |
But under a "flex" rule, train companies can raise fares by 2% above the average, as long as the overall average stays at RPI plus 1%. | But under a "flex" rule, train companies can raise fares by 2% above the average, as long as the overall average stays at RPI plus 1%. |
As a result, some fares could increase by 4.5% next year. | As a result, some fares could increase by 4.5% next year. |
'More to do' | 'More to do' |
Labour said it would abolish the flex rule, and accused David Cameron of failing to stand up for working people. | Labour said it would abolish the flex rule, and accused David Cameron of failing to stand up for working people. |
"He's allowed train companies to sting passengers with inflation-busting fare rises of over 20% since 2010, costing them hundreds of pounds," said Mary Creagh, the shadow transport minister. | "He's allowed train companies to sting passengers with inflation-busting fare rises of over 20% since 2010, costing them hundreds of pounds," said Mary Creagh, the shadow transport minister. |
This year -2014- the government capped fare rises to keep them in line with inflation. But it is not known whether the same will happen in 2015. | This year -2014- the government capped fare rises to keep them in line with inflation. But it is not known whether the same will happen in 2015. |
The Department for Transport defended the rise. | The Department for Transport defended the rise. |
"We fully recognise there's more to do to bring down the cost of rail travel in Britain," said Transport Secretary Patrick Mcloughlin. | "We fully recognise there's more to do to bring down the cost of rail travel in Britain," said Transport Secretary Patrick Mcloughlin. |
"But we need to do it responsibly and we can't spend money we don't have," he said. | "But we need to do it responsibly and we can't spend money we don't have," he said. |
The Scottish Government has already said rail fares in 2015 will be capped at RPI - in other words at 2.5%. | The Scottish Government has already said rail fares in 2015 will be capped at RPI - in other words at 2.5%. |
'Phenomenal growth' | |
News of next year's rise means that fares will have increased by about 25% since the coalition came to power in 2010, according to the Campaign for Better Transport (CBT). | |
But the government says it is committed to reducing public subsidies for the railways, and transferring more of the cost to passengers. | |
At the same time it wants to encourage investment. | |
Michael Roberts, director general of the industry body, the Rail Delivery Group, said that although rail fares had increased above inflation for a decade, the number of passengers had seen "phenomenal growth". | |
"Compared with fifteen years ago, we're now carrying twice as many passengers as we did then," he said. But he added that rail services were partly a "victim of that success" because there was now overcrowding on some major services. |