Rail fare hikes 2016: prices to rise by 1.9%

Household money

Updated on 16 August 2016 | 4 Comments

Research highlights how rail fares have increased at double the pace of wages – on the same day as new fare hikes are announced.

The latest round of rail fare increases has been announced as new data shows workers’ wages can’t keep up with the dramatic price hikes.

According to the Trade Unions Congress (TUC), rail ticket prices have increased at more than double the speed of wages since 2010.

While our income's have increased 12% in the last six years, rail fares have jumped a staggering 25% during the same period.

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Double blow

That these findings were released on the same day the latest round of planned rail fare hikes are announced will be a double blow to rail travellers.

As of January 2017, regulated rail fares in England, Scotland and Wales are set to rise by 1.9%.

On a £2,500 season ticket, that works out to an increase of around £48.

Why are prices rising again?

 Every August, regulated rail fare hikes for the coming tear are announced.

Regulated fares include season tickets, off-peak return tickets and walk-up anytime single tickets.

These tickets are regulated by the Government and based on July’s Retail Prices Index (RPI) measure of inflation.

Since 2004, regulated rail fare increases have been calculated using July’s RPI+1%. This is so passengers pay a bigger portion of the cost of running the railways than taxpayers.

However, for the third year running the Government altered its preferred calculation so the increase was pinned only to inflation, amid growing anger from commuters at high fares.

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What can you do about it?

If you’re fed up with the relentless price hikes, there are some things you can do fight back.

Have a read of our detailed guide to cutting the cost of rail and coach travel, which includes tricks like split ticketing, finding the best railcard and avoiding booking fees.

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