Beat The Season Ticket Hikes
Some rail fares next year are set to soar above inflation. Here are a few tips to help soften the blow.
Commuter wallets received a shock earlier this month, as rail companies across the country announced train fares in some parts of Britain were to rise by as much as 15%.
The new fares kick in on January 2nd. Season tickets, saver and standard day returns will rise by an average of 4.8%, with unregulated fares such as cheap day returns and long distance advance fares going up by around 5.4%.
Commuters travelling to and from Kent are some of the worst affected, with train company Southeastern raising fares by an average of 6.8%. This is a full 2.6% above October's Retail Price Index (RPI) of 4.2%. A weekly ticket from Hayes in Kent to London will rise from £24.80 to £28.50. That's a 14.9% increase!
These are big rises so here are some tips that could help you avoid the 2008 rail fare squeeze.
Firstly, for those of you whose season tickets are due to expire in the next few weeks, it may be worth renewing your ticket before the rise to beat the fare hike, even if your original ticket is still valid after January 2nd. Here's a table with some examples:
Route | 2007 annual price | 2008 annual price | Percentage increase | Last date where buying a ticket is good value |
|---|---|---|---|---|
London - Canterbury Southeastern | £3132 | £3480 | 11.1% | 28th January 4 weeks(£348 difference divided by new £87 weekly travel price) |
London - Sevenoaks Southeastern | £2156 | £2300 | 6.7% | 17th January |
Warrington to Manchester Northern | £1228 | £1288 | 4.89% | 14th January |
London (zones 1-4) Transport for London | £1328 | £1384 | 4.2% | 11th January |
As you can see, for the highest fares, it still could be worth buying your ticket on January 1st, even if your season ticket expires up to January 28th for those coming to London from Canterbury.
With average season tickets going up by 4.8%, in general, if you have an annual ticket which expires before January 14th, then you may want to think about renewing early to beat the rise.
Remember, if you're a regular commuter, shelling out for an annual ticket is a good idea. Annual passes cost the equivalent of 40 weekly tickets, and for those who regularly buy monthly passes, they provide you with travel for one year for the cost of around 10 1/2 months travel.
If you're worried about shelling out such a large sum at once, check if your employer has a season ticket loan scheme, where your employer pays up-front for your season ticket. Such loans are often interest-free, and you pay it back in regular installments over 10 to 12 months.
The oyster is your world
Fortunately, when it comes to rail fares, Londoners have not been hit as hard as their fellow rail commuters. However, while Oyster single journey prices have been frozen next year, season tickets are set to rise in line with RPI.
This means that part-time workers and those who only use the tube for a set amount of journeys who buy season tickets may want to consider switching to pay as you go.
For example, a single journey from zones 1 - 4 in London will cost you £2.50 from January 2nd. If you only make two tube journeys per day to and from work, ten such journeys (over a working week) will cost £25. When you compare that to the weekly travelcard price of £34.60, you could be saving nearly £10 a week by switching to pay as you go.
Even if you usually buy a monthly ticket, potential savings of £22.90 a month are up for grabs (presuming that there are 22 working days in a month) when you compare the monthly travelcard price of £132.90 with the pay as you go equivalent of £110.
Obviously, when it comes to travel, we all have different travel patterns, so the savings outlined here should only be used as a guide. Bear in mind that on days where you start your journey before 9.30am, the Oyster daily price cap is £8.90, compared to £5.90 if you travel after 9.30am. This means that you may end up squandering any potential savings should your travel plans take an unexpected turn and you need to make extra journeys.
Get on your bike
If crowded commuter trains are putting you off underground and rail travel altogether, then why not cut out your season ticket altogether and cycle to work?
Under the Government's Cycle to Work Scheme, employees who are paid through the Pay as You Earn System can purchase a bike, together with accessories such as a helmet completely tax free.
Typical savings are around 43%, though the precise amount is dependent on how much tax you pay, as well as if your employer is entitled to reclaim VAT. However, if you are looking to go green, and save money while you're at it, the scheme is well worth looking at. For further information, ask your employer, or take a look at cyclescheme.co.uk.
Maximise your benefits
Finally, for those who simply can't avoid their daily commute, you can still maximize the benefits of your travelcard.
If you hold an annual season ticket, you can often get discounts on rail travel, including around a third off many tickets from participating rail companies, as well as cheap travel for members of your family. Individual rail companies also list a range of offers, with discounts on days out and other activities.
Oyster also has some great offers, including 2 for 1 deals at many theatres across London, and discounts on a range of leisure activities throughout the year. You don't need to be a season ticket holder to take advantage either. You can often turn up on the day, show your card and grab that bargain.
Happy travelling!
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