Rail fares in 2012 – What the Government’s decision means

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ATOC has provided information for rail passengers on the impact of the Government’s decision to change the level of regulated fare rises in 2012:

What is happening to rail fares next year?

On 29 November, the UK Government announced that in January, regulated fares across most of England will rise by an average of the retail price index (RPI) for inflation plus one per cent.

This is a change from what the Government announced last year when it said it wanted these fares to rise by RPI plus three per cent in 2012.

The government pegs the price of around half of all fares to each July’s RPI inflation figure. These are known as regulated fares and comprise Season tickets and most intercity journeys at quieter times of the day.

This year, July’s RPI was 5%. Therefore, the average rise in regulated fares in 2012 would have been 8%. But after the change of government policy in November, the average rise will now be 6%.

Operators are working hard to re-price millions of fares in time for the new year.

What about other fares?

Train companies set the remaining fares, known as unregulated tickets. These cover cheap Advance fares, leisure tickets for local journeys and business fares for intercity journeys at busier times of the day.

Such fares tend to cover journeys where passengers could choose to drive, catch a bus or fly rather than travel by train, so prices reflect market conditions.

These fares are nevertheless heavily influenced by government policy. Operators have to meet tough financial commitments agreed with the government when franchise agreements are signed.

For a number of years, these payments have been shaped by Government policy to reduce the amount that taxpayers contribute to the cost of running the railway and require passengers to pay a greater share.

What’s happening to fares for Scotland and Wales?

Devolved administrations in Scotland and Wales had already decided to keep regulated fares at RPI plus one per cent for Scotrail and many Arriva Trains Wales services, so most of Britain will now see the same average rise for regulated fares in 2012.

Merseyrail’s franchise agreement with the local Passenger Transport Executive pegs regulated fares to RPI plus 0 (average rise of 5%), and that remains the same.

When will 2012 fares be available?

Normally the process of setting new fares takes several months, and the 2012 fares would have been available to view in early December, ready for sale for use on or after 2 January 2012.

Since the government announced its decision on 29th November to limit the average increase in regulated fares to 6%, train companies have been working very hard to re-set tens of millions of fares at very short notice.

As a result of this, the correct information about new 2012 fares will not be available until Tuesday 20th December.

Until then, many 2012 ticket prices shown on National Rail Enquiries, train company websites or any rail fare website, will be subject to change.

Does this mean passengers will pay too much for tickets?

No. Passengers won’t be able to buy tickets at the higher, out-of-date price because train companies have ensured that they have been removed from ticket retailing systems.

Tickets can still be bought for travel in 2012 but will be sold at the current (lower) prices until the new fares are available.

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