Government lowers rail fare inflation cap
The Prime Minister has announced that regulated rail fares will rise by an average of 4.2% next January, as the inflation cap is reduced.
Rail fare price increases will be capped for the next two years, the Government has announced.
Passengers were facing average increases on regulated fares – such as season tickets and long-distance off-peak journeys – of 6.2%, using the Retail Prices Index (RPI) plus 3% method of calculation.
But the Prime Minister said the increase for the next two years will be RPI plus 1%, meaning the average increase will be 4.2%.
That formula will also apply to London’s underground and bus services. They had been due to rise by RPI plus 2%.
The fare increase is pegged to July’s RPI inflation figure, which this year came in at 3.2%.
There was widespread anger when it appeared that the 6.2% increase might be allowed to stand, with commuters complaining that it was another blow in a time of austerity.
The Department for Transport said that it is planning to cap the increase at RPI plus 1% from January 2015.
It says the change will be funded by savings from its budget.
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This shows the "Alice in Wonderland" business world of the regulator. Regulators that, by the way, are there to protect our, the victi . . consumer’s, interests. They rigorously hold price increases [B][I]down[/B][/I] to 2% or 3% or 6% or more [B][I]above[/B][/I] inflation. These are price rises of which [B][I]normal[/B][/I] businesses operating in the real commercial world can only dream when many are being forced to reduce prices. It is these so-called controlled prices that are fuelling inflation. BEWARE! HMG will seriously damage your wealth.
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More subsidies from the tax-payer, mainly for the South East and London. When is this "Conservative" government going to be Conservative and make people pay for what they use. Public Transport mania persists regardless of the economic mess we are in. Stop wasting our money on public transport we cannot afford and don't need anyway, CammerClegg!
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08 October 2012