Inflation link to rail fare rises 'must be ditched'

MINISTERS are today facing mounting pressure to scrap inflation-linked rail fare increases.

It came as train firms raised ticket prices by up to 11 per cent while reaping in tens of millions of pounds in profit.

More than 500,000 rail commuters will have to pay up to eight per cent more, adding hundreds of pounds to the cost of an annual season ticket.

Off-peak fares will increase by between seven and 11 per cent.

Many Tube, bus and Docklands Light Railway tickets will increase by an average of six per cent - though the "short-hop" £4 cash fare on the Tube is frozen.

Mayor Boris Johnson said he was being forced to increase fares "to tackle the unfunded legacy of Livingstone's largesse".

Mr Johnson has also implemented discounted and off-peak travel schemes to keep prices down. The increases signal the start of a triple whammy for many commuters - including hugely increased bills for domestic fuel supplies, and the credit card statements covering the Christmas period that will soon start dropping onto doormats.

Gerry Doherty, leader of transport union TSSA, led calls to halt the "gravy train" used by the rail operators to force up fares every year. He said: "This latest increase makes a mockery of the Government's claims to help hard-working families through the recession.

"As every other business in the land frantically cuts prices to attract customers we see the rail companies cheerfully ripping off passengers by increasing their prices as inflation falls towards zero in 2009." He added: "It is time for ministers to end this gravy train."

Mr Doherty is demanding transport secretary Geoff Hoon scrap the system where the rail companies use the July inflation rate - five per cent last year - on which to base their increases.

Ministers have allowed the companies to add one per cent on top of this for peak-time tickets, pushing the average cost up by six per cent.

The exception is Southeastern, the UK's busiest commuter firm, serving Kent and the South-East into Cannon Street, Charing Cross and Victoria, where peak-time tickets will cost an average eight per cent more. This is to pay for new high-speed commuter trains on the Channel Tunnel link, despite the fact that most of those having to pay will not want or be able to use the service.

Mr Doherty said: "The system of basing ticket increases on the July inflation rate and allowing the companies to add one or even three per cent more is past its sell-by date and must be scrapped."

The Government justified the system, by saying more of the cost of running the railways must be paid for by the passenger and not the taxpayer.

But Stephen Joseph, executive director of the pressure group Campaign for Better Transport, said fares are now so high that passengers are being "priced off" trains.

He said: "The Government's policy is to reduce its investment in the railway and make passengers pay more.

"It should invest more, regulate fares so they don't rise above inflation and make it easy for people to reduce their carbon footprint." Theresa Villiers, shadow transport secretary, accused Labour of allowing the rail companies to "get way" with massive fare rises.

She said: "With family budgets already under pressure from the economic downturn these increases will hit commuters hard.

"Labour is asking travellers to pay a big increase in fares for more and grossly overcrowded trains."

Anthony Smith, chief executive of the watchdog Passenger Focus, said: "Many passengers will shudder and shiver when they find out the scale of some new year fare rises.

"Fare rises that hark back to a time of high inflation and spiralling energy costs look very out of kilter.

"In addition, the perpetual tinkering with ticket restrictions ensure back-door fare rises continue.

"Yet again, many long-distance passengers will be pushed into paying higher prices or locking themselves into rigid advance-purchase, one-train-only fares."