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13/08/2013
Rail Fares To Increase By 40%
The Trades Union Congress (TUC) and rail unions has issued a warning that rail fares are set to be 40% higher from this January than in 2008.
The rate has increased almost three times faster than wages.
Next year's increase – the sixth in seven years – will mean that rail fares will have increased by 40% for the period between January 2008 and January 2014. Over the same period, average earnings have increased by just 15%, the union said.
New figures released this morning (13 August) are predicted to show that RPI inflation rose by 3.3% in July. Regulated rail fares - which include season tickets - are allowed to rise by July's RPI figure plus 1%, and would therefore increase by 4.3% in January 2014.
An additional 5% flexibility means that some season tickets could actually increase by around 9% in the new year, while unregulated fares could increase further again. This is in contrast to average earnings which are forecast to rise by just 2.4% next year.
Since 2008, TUC analysis shows that some season tickets have increased by more than £1,000.
TUC General Secretary Frances O'Grady said: "Every year hard-pressed rail commuters have to hand over an ever greater share of their earnings just to get to and from work.
"Wage-busting fare rises are not even going on much needed service improvements either. Instead, passenger and public subsidies are lining the pockets of the shareholders of private rail companies.
"You only have to look at the nationalised East Coast mainline to see that public ownership of the railways not only works, it provides a better deal for passengers and taxpayers alike.
"Ministers must put evidence before ideology, halt the privatisation of the East Coast mainline and look at bringing our railways back into public ownership."
However, Transport Secretary Patrick McLoughlin said nobody liked paying more money for fares but the Government was investing heavily in the railways.
He is quoted by Sky News as saying: "Nobody likes to see rail fares go up. I don't like to see it and passengers don't like to see it.
"We are massively investing in the railways, with £130m being spent here at Nottingham, £800m at Reading and £600m at Birmingham.
"Running the railways is a very expensive business."
The TUC and the Action For Rail campaign group have planned a series of demonstrations against the price hikes at stations across the UK including Birmingham New Street, Bristol Temple Meads, Glasgow Central, Manchester Piccadilly, Newcastle Central and London's Paddington and Victoria Station.
(JP/IT)
The rate has increased almost three times faster than wages.
Next year's increase – the sixth in seven years – will mean that rail fares will have increased by 40% for the period between January 2008 and January 2014. Over the same period, average earnings have increased by just 15%, the union said.
New figures released this morning (13 August) are predicted to show that RPI inflation rose by 3.3% in July. Regulated rail fares - which include season tickets - are allowed to rise by July's RPI figure plus 1%, and would therefore increase by 4.3% in January 2014.
An additional 5% flexibility means that some season tickets could actually increase by around 9% in the new year, while unregulated fares could increase further again. This is in contrast to average earnings which are forecast to rise by just 2.4% next year.
Since 2008, TUC analysis shows that some season tickets have increased by more than £1,000.
TUC General Secretary Frances O'Grady said: "Every year hard-pressed rail commuters have to hand over an ever greater share of their earnings just to get to and from work.
"Wage-busting fare rises are not even going on much needed service improvements either. Instead, passenger and public subsidies are lining the pockets of the shareholders of private rail companies.
"You only have to look at the nationalised East Coast mainline to see that public ownership of the railways not only works, it provides a better deal for passengers and taxpayers alike.
"Ministers must put evidence before ideology, halt the privatisation of the East Coast mainline and look at bringing our railways back into public ownership."
However, Transport Secretary Patrick McLoughlin said nobody liked paying more money for fares but the Government was investing heavily in the railways.
He is quoted by Sky News as saying: "Nobody likes to see rail fares go up. I don't like to see it and passengers don't like to see it.
"We are massively investing in the railways, with £130m being spent here at Nottingham, £800m at Reading and £600m at Birmingham.
"Running the railways is a very expensive business."
The TUC and the Action For Rail campaign group have planned a series of demonstrations against the price hikes at stations across the UK including Birmingham New Street, Bristol Temple Meads, Glasgow Central, Manchester Piccadilly, Newcastle Central and London's Paddington and Victoria Station.
(JP/IT)
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