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COVID-19: Commuters face inflation-busting rail fare hike to help pay for coronavirus

The DfT says the cap on increases is being abandoned as taxpayers plough billions into keeping railways open during the pandemic.

John-Paul Ford Rojas, business reporter
John-Paul Ford Rojas

Business reporter @JPFordRojas

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Wednesday 16 December 2020 03:42, UK

Passengers wearing face masks at Waterloo station in London as face coverings become mandatory on public transport in England 15/6/2020
Image: Regulated fares will go up by an average 2.6% in March
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Commuters will face an above-inflation hike in rail fares next year, the government has announced.

Regulated fares - which include season tickets - will go up by an average 2.6%, though the increase will be delayed from January until 1 March, the Department for Transport said.

It is one percentage point higher than the 1.6% RPI inflation rate measured in July this year - the benchmark figure which has been used in every year since 2014 to cap price rises.

Train platforms remain far less busy than pre-lockdown
Image: Taxpayers are spending billions to keep rail routes open during the pandemic

The Department for Transport (DfT) said the peg to the cost-of-living increase had been abandoned because of billions in taxpayer support being used to subsidise the railways during the pandemic.

But Mick Cash of the Rail, Maritime and Transport union said ticket prices were being "forced up to subsidise private profit".

Despite being higher than inflation, the 2.6% increase will still be smaller than last year's increase.

The DfT said the delay in the fares hike to March offered commuters who could not work from home a window to renew season tickets at the existing rate.

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It added that more than £4bn had been invested to support the railways since the start of the pandemic, expected to rise to £10bn.

The government took over rail franchise agreements from train operators in March following the collapse in demand caused by the pandemic.

File photo dated 14/08/18 of rail tickets. Rail commuters face an increase in season ticket prices of around 1% in January despite people being urged to return to workplaces, economic forecasts show.
Image: The use of RPI is already controversial as it is typically higher than CPI inflation

Rail minister Chris Heaton-Harris said: "By setting fares sensibly we are ensuring that taxpayers are not overburdened for their unprecedented contribution, ensuring investment is focused on keeping vital services running and protecting frontline jobs."

Jacqueline Starr, chief executive of the Rail Delivery Group, representing train operators, acknowledged that "passengers will be disappointed".

The use of the RPI measure of inflation to set fare increases is already controversial because it tends to be higher than the more widely used CPI measure. This year CPI stood at 1% in July.

Manuel Cortes, general secretary of the Transport Salaried Staff Association, a union, said the above-inflation rise was "extortionate and plain daft".

"Given the massive economic fallout from the virus, the last thing we need to see is a kick in the teeth for passengers," Mr Cortes said.