Government limits rail fare rises for commuters

Hard-pressed rail commuters facing inflation-busting fare increases in the new year are being given some respite, with Government limiting the amount train operators can raise fares.

The Government has announced that the ability of train operators to add an additional 5% to some individual fares, as long as the average rise of regulated fares is maintained at 1% above RPI inflation, is being limited to just 2%.

This means that in January 2014, no regulated fare - which includes season tickets - can go up by more than 6.1%, with the average, as already announced, being limited to 4.1%.

With the new year rise being based on the July 2013 RPI inflation rate, which was 3.1%, some season tickets could have gone up by as much as 9.1% under the old "flexible" system.

The reduction in "flex" is part of the Government's fares and ticketing review published today by Transport Secretary Patrick McLoughlin.

Mr McLoughlin said: "Today is just the start of a Government-wide programme to help hardworking people and reduce the cost of living. The Government will be announcing a range of initiatives to help put money back in people's pockets over the next few weeks.

"By capping fares we are protecting passengers from large rises at a time when family incomes are already being squeezed. We will need to wait for the rail industry to calculate individual ticket prices for next year, but this cap could save some commuters as much as £200 a year."

Anthony Smith, chief executive of rail customer watchdog Passenger Focus, said: "We have been calling for this to happen for years - it is a step towards a fairer system. This will allow passengers to plan with a bit more certainty and have confidence that actual regulated fare rises will bear more relation to the figures set by government."

As well as curbing the rise in fares, the review opens the door for future innovations such as the end of paper tickets, a code of conduct for train companies to give passengers the confidence that they are getting the best deal for their journey, and a flexible approach to season tickets which could benefit part-time workers.

Some of the ticketing initiatives were announced last month.