Train passengers face fare hikes in 2009

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 24, 2008 -- In a move that is sure to anger hard-pressed commuters, new fare increases on rail journeys are to come into effect at the start of 2009. The fare hikes will be the highest since the privatisation of the railways 15 years ago, and come at a particularly bad time as the UK economy slumps further into recession.

From January 2nd, rail passengers will face an average rise of 6% on regulated fares – which include season tickets and fares bought for off-peak journeys – and 7% on unregulated fares. In some areas of the UK, particularly the southeast, fares will rise by even more, up to 8%. For commuters travelling from points in Kent to London, for example, the increases could add as much as £280 to an annual season ticket.

Rail companies are only allowed to raise regulated fares by around 1% above the inflation rate stated in the retail price index (RPI), but they are taking advantage of a loophole in the law to use the RPI figure from last July, when the economy was growing at a much faster rate than it is currently. This means that by the time the fare increases come into effect next year they could be as much as 3% above the rate of inflation.

The companies are now facing calls to change the way they calculate the increases, given the current economic crisis. Backing such changes, Stephen Joseph, the chairman of the Campaign for Better Transport lobby group, said, “The current level of inflation should be used to ensure that rail users are not unfairly penalised” and that “common sense should take over” rather than an adherence to rules designed for a stable economic climate.

Passenger groups, including Passenger Focus, the independent rail consumer watchdog, as well as MPs have called on the chancellor, Alistair Darling, to protect rail users by reducing or postponing the fare increases. Critics also point out that the government has repeatedly frozen fuel duty for motorists in the light of the economic downturn, and should make a similar move to help rail passengers.

The increases in fares based on the RPI is part of the government’s plan to cut support to the rail network over the coming years, by up to a 40% reduction until 2014. Train operators are assuring passengers that the fare increases will help pay for major improvements of the rail network, and that the revenue will be reinvested so that improvements will be carried out faster.
But it is doubtful that such assurances will be much comfort to beleaguered commuters who already have to put up with poor service, delays, and overcrowded trains, only to be hit with above-inflation fare hikes in the new year.




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