Commuters braced for new 4% rise in train fares

Train commuters struggling on stagnant wages are braced for an average fare increase of 4.1% in the New Year.

Train companies are allowed to set their fare increases to one percent above the Retail Price Index (RPI) measure of inflation in July, which was revealed today to be 3.1%.

During a week when it was revealed that real wages in Britain had suffered more than disaster-struck Spain or Cyprus since mid-2010, hard-pressed workers now face losing another chunk of their salary to the daily commute.

The TUC said that a 4% hike in 2014 would equate to a 40% rise in regulated fares since 2008 compared to a rise in average earnings of just 14% over the same period.

How much could your season ticket cost in 2014?

Increases "Essential"

Michael Roberts, chief executive of the Association of Train Operating Companies (ATOC), defended the fare rises, claiming that they were essential for upgrades to the network.

"Someone has to pay for that investment," he told the BBC.

“Over many years government policy has been to allow regulated fares like season tickets to go up above the rate of inflation.”

But as we detailed in our June blog, A Total Public Rip-Off, commuters have become increasingly disillusioned with a poor-performing rail system and a culture of exorbitant bonuses that is seen to be rewarding failure.

Our graphic from 2013 shows how trains have become the most expensive form of transport (read more).

ATOC says that only 3p in every pound spent on rail fares is profit, while 48p goes to Network Rail for maintenance.

However, bosses at the taxpayer-funded organisation are set to receive over £10 million over the next three years, despite a failure to reach modest punctuality targets which could land the firm a £75 million fine from the Office of Rail Regulation.

A damning report from the Centre for Research on Socio-Cultural Change said that privatising the railways had led to the highest fares in Europe with cramped conditions.

Fare increases had largely gone straight towards returns for shareholders, it said, leaving the taxpayer to pick up the cost of investing back into the railways.

"Running the railways is a hugely expensive business," conceded transport secretary, Patrick McLoughlin.

"I'm afraid the passenger also has to make his contribution."

What are your thoughts on the pending 4% rise in train fares? Is it justified? Are trains becoming unaffordable? Let us know by leaving a comment below!

Keith McDonald
Which4U Editor

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