Latest news with #TrainFares
The Guardian
2 days ago
- Business
- The Guardian
Rail fares in England expected to rise by 5.8% next year
Train fares in England expected to rise by as much as 5.8% next year on the back of the latest inflation data release, sparking concern among passenger groups. Increases in rail ticket prices are usually calculated by adding one percentage point to July's inflation reading on the retail prices index, which was 4.8%, according to figures from the Office for National Statistics. The government has not yet confirmed how it will calculate rail fare increases for 2026, they last rose by 4.6% in March, which was one percentage point above the RPI reading from July 2024. Regulated fares, which account for about half of rail journeys, would rise by 5.8% in 2026 if the increase follows the same pattern as last year. Before the publication of July's inflation figures, passenger groups had warned that such fare increases risked pricing out some passengers, at a time of a squeeze on consumers' wallets, including rising food prices. Almost half of rail fares in England are set directly by Westminster. The devolved Scottish and Welsh governments usually cap fares at a similar level. Regulated fares include season tickets on most commuter journeys, off-peak returns on long-distance routes and flexible tickets for urban rail. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion More details soon …
The Guardian
4 days ago
- Business
- The Guardian
Rail fares in England could rise by ‘outrageous' 5.5% next year
Train fares in England could rise by as much as 5.6% next year, as campaigners said passengers could be priced off the railway. Increases in train ticket prices are calculated using the inflation reading for July, which will be announced on Wednesday. The retail prices index – the measure of inflation used for the calculations – will hit 4.6% in July, according to consensus forecasts by City economists. Regulated fares, which account for about half of rail journeys, would rise by 5.6% in 2026 if the increase follows the same pattern as last year. Although the government has not yet confirmed how it will calculate fares for 2026, they last rose by 4.6% in March, which was one percentage point above the RPI reading from July 2024. Bruce Williamson, a spokesperson for the campaign group Railfuture, said such an increase would be 'outrageous'. 'What would be the justification for jacking up fares above inflation? There isn't any,' he said. 'It's ripping off the customer, driving people off the trains and on to our congested road network, which is in no one's interest.' The government is working on plans to bring rail services into public ownership, and Williamson said he would support a government freeze on fares. 'One would hope that there would be some efficiency savings and economies of scale that you get from having a more integrated railway,' he said. 'But of course, I strongly suspect that if there are any savings to be had, they'd be swallowed up by the Treasury and not passed back to the passengers, which I think is wrong.' Almost half of rail fares in England are directly set by Westminster. The devolved Scottish and Welsh governments usually cap fares at a similar level. Regulated fares include season tickets on most commuter journeys, off-peak returns on long-distance routes and flexible tickets for urban rail. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The prospect of higher travel costs comes amid a broader rise in the cost of living. Economists expect that the consumer price index, the headline measure for inflation, will be 3.7% in July, up from 3.6% in June. The government is expected to provide an update on changes to regulated fares later this year. A Department for Transport spokesperson said: 'The transport secretary has made clear her number one priority is getting the railways back to a place where people can rely on them. 'The government is putting passengers at the heart of its plans for public ownership and Great British Railways, delivering the services they deserve and driving growth. 'No decisions have been made on next year's rail fares but our aim is that prices balance affordability for both passengers and taxpayers.'
