UK rail fares set to rise by 1.6% after inflation jump

Hard-pressed British commuters face another hit to the wallet next January after Wednesday’s surge in inflation, with rail fares set to rise by 1.6%.

The rise could add as much as £100 to a typical annual season ticket. Price increases are indexed to the previous year’s July retail prices index (RPI) which this year beat analysts expectations of a 1.1% jump.

Higher fares come despite slumping passenger numbers as people work from home during the Covid-19 pandemic.

The rise compares to 2.8% last year and will be the lowest since 2015. However, according to the figures from the government's Office of Rail and Road, passenger numbers fell 11.4% year on year for the three months to March 31.

Second quarter figures, which cover the lockdown period at its peak, are expected to show a more dramatic decline. Government estimates show passenger numbers had crumbled by 70% since the pandemic began.

Passenger watchdog Transport Focus called on the government and train companies to offer better value-for-money deals to people back on trains.

Chief executive Anthony Smith said the pandemic and associated lockdowns meant “people’s feelings about travel, and the way they use public transport, have changed”.

“While the rail leisure travel may bounce back, our research tells us almost two in three former rail commuters expect to work from home more so we will probably now travel less for work, both commuting and on business,” he said.

He said the government “must go above and beyond a fares freeze” and get train companies to offer a combination of cut-price deals, carnet style ‘bundles’, flexible season tickets for commuters and better value for money fares across the board.

“To get Britain moving again in the coming months, tickets that fit the way we live and travel now are needed, not just season tickets designed for city gents in the last century.”

“Like the government’s restaurant deal, we need a ‘Head Out to Help Out’ campaign to help get the country on the move again, boost the economy and reduce traffic on our roads.”

The government has suspended all rail franchise agreements with payments to the Treasury scrapped with rail firms receiving a flat fee while the network is financially managed by the Department for Transport.