The British government will stick to plans to increase rail fares by as much as eight percent for many commuters next year, transport minister Theresa Villiers said today, arguing that the rises were needed to fund improvements to services.
The big increases are caused by a pricing formula which allows fares for season tickets to rise by retail price inflation (RPI) plus 3 per cent. The July RPI figure, used as the base, came in at 5 per cent, unchanged from the previous month.
"We'll be going ahead with these real terms increases in rail fares," Ms Villiers told BBC Radio 4.
"And the reason why we're doing that is to enable us to deliver our programme of rail upgrades and capacity improvements to deal with and relieve (over)crowding," she added.
Ms Villiers said the investment programme was probably the biggest since the Victorian era when the rail system was being set up, but that the cost needed to be borne by passengers rather than general taxpayers.
"It will deliver around 2,700 new carriages. It's a major programme but at a time when we have to deal with the deficit, in order to fund that programme, I'm afraid that we do have to ask passengers to pay a little more for three years."
So-called "regulated rail fares" - including season tickets and off-peak returns - had been increased by RPI plus one percent in recent years.
The formula affects regulated fares, such as season tickets and long-distance off-peak tickets.
Some fares will go up by far more than the 8 per cent average, because train companies are allowed to increase fares by another 5 per cent on top, as long as that is balanced with reductions elsewhere.
Passengers' groups oppose that formula. "Having some fares regulated is clearly in passengers' interests," said David Sidebottom, director of one group, Passenger Focus.
"However, the way that train companies are allowed to set fares on individual routes is deeply unfair.
"Some passengers, who may have seen no investment or improvements, can get hit year after year.
"The government's commitment that the next three years should signal the end of inflation plus three percent rises is welcome but in the meantime passengers will have to dig deep."
Reuters