Commuters to face 11 per cent New Year rail fare rise

COMMUTER train fares will rocket by up to 11 per cent next year despite an eleventh hour plea by Transport Secretary Geoff Hoon to limit the rises.

Turning a deaf ear to the Cabinet minister's demand for restraint, rail operators announced that increases far outstripping inflation will come into effect on 2 January.

Rail chiefs confirmed commuters in the South-East will bear the brunt of rises — up an average of eight per cent for peak time and six per cent off peak.

The worst-hit passengers will be on Southeastern, which will be allowed to put up fares by an average of eight per cent to fund commuter trains on the Channel Tunnel Rail Link.

The increases mean hundreds of pounds will be added to some annual tickets sparking fears that passengers could be priced off the railways.

Every year train companies are allowed to increase regulated commuter fares by the Retail Price Index based on the July figure — which was 5.3 per cent — plus one per cent. Regulated fares include season tickets. The exception is Southeastern, which serves Charing Cross, Cannon Street and Victoria.

It has been given government permission to increase fares by RPI plus three per cent. This is to pay for new high-speed commuter services due to begin in early 2010 on the Channel Tunnel Rail Link from Ashford into St Pancras International.

But all train operators are allowed to "juggle" increases on unregulated fares by two per cent if they offset steep rises on some services by below-inflation rises on others — leading to the 11 per cent increases on some lines.

Unregulated fares include most leisure and advance tickets.

Mr Hoon warned rail chiefs earlier this week that they risk sparking fury among commuters with huge fare rises as inflation falls in the downturn.

But the Cabinet minister refused to intervene to put a lid on increases. A Department for Transport spokesman said: "It's clear that passengers have concerns about the value for money they receive from train companies.

"The Secretary of State reminded operators that difficult economic circumstances will make these concerns more acute, and called on them to bear this in mind when setting their fares."

This week inflation fell to 4.5 per cent and economists predict there could even be deflation next year.

Gerry Doherty of the TSSA Transport Union said: "It is a scandal the rail companies have this trigger which allows them to put up fares every year."

In January this year fares increased by up to 14.5 per cent.

Michael Roberts, chief executive of the Association of Train Operating Companies, tried to justify the rises.

He said: "The January fare changes mean train companies can continue investing in an even better railway and still offer a range of good deals."

The new rates mean a yearly season ticket to London from Ashford will rise by £276 to £3,736 and from Sevenoaks by £184 to £2,484 (both eight per cent).

A yearly season ticket from Oxford will go up £233 to £4,125 and from Reading by £199 to £3,527 (both six per cent).

From Brighton an annual ticket rises by £196 to £3,476 and from Winchester by £222 to £3,934 (six per cent).