Price increases on train travel are being capped in England. Here's how it will affect you.
Train providers in England will not be able to increase fares above 6.1%, the Government has confirmed.
Planned rises in January of up to 9.1% on some train networks will now not go ahead.
This is part of a total overhaul of the train networks which could also see the end of paperless tickets and a more flexible approach to season tickets.
Capped fares
Transport Secretary, Patrick McLoughlin, has confirmed that no regulated fare, such as season tickets, ‘anytime’ single tickets and off-peak inter-city return tickets, on any network can go up by more than 6.1% in 2014.
Average prices will go up by 4.1% in January, which is 1% above the retail prices index (RPI) rate for inflation in July of 3.1%.
Previously train firms could impose price rises of 5% above the average rise on certain tickets, so long as that additional cost was balanced out with lower priced tickets elsewhere. That has now been lowered to 2% above the average rise.
McLoughlin, set out the changes in the ‘Fares and ticketing review’ today which aims to improve rail conditions in the UK.
He said: “By capping fares we are protecting passengers from large rises at a time when family incomes are already being squeezed.
“We will need to wait for the rail industry to calculate individual ticket prices for next year, but this cap could save some commuters as much as £200 a year.”
The move has been welcomed by Passenger Focus. Anthony Smith, chief executive, said: “It is imperative the rail industry does what it can to ensure that passengers buy the right ticket.
“It should then be obvious what they have bought and when it can be used. These reforms taken together will, in time, help boost confidence. The price of getting it wrong has now become very high for passengers.”
[SPOTLIGHT]But Stephen Joseph, chief executive for the Campaign for Better Transport, says the plans don't address the "gaping hole" at the centre of the Government's fares policy.
He said: "Whilst trials for things like part-time season tickets are very welcome, the biggest issue has always been annual above inflation fare increases and there is no change of policy on this. This is bitter news for everyone who relies on the train to get to work, not least the large number of commuters in marginal constituencies who will be a key group at the next election."
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The ‘Fares and ticketing review’
Other ideas, such as a code of conduct for train companies to give to passengers, have been suggested to improve the rail networks.
The Office of Rail Regulation (ORR) will oversee the code, which will give customers the information they need to choose the right ticket for their journey. Ticket offices will also be improved so they are open later and passenger representative bodies will have a greater role in how they are operated.
'Touch in, touch out' rail tickets will be rolled-out across the networks, allowing part-time workers a discount on season tickets if they aren’t travelling every day. Single-leg pricing will be piloted, allowing passengers to mix and match tickets to ensure they’re getting the cheapest deal when booking a return journey.
Information will also be released to passengers on how well ticket machines, station staff and websites are performing in relation to selling the right kind of tickets to passengers.
How to cut your train travel costs
Until these changes are introduced, there are several other ways you can cut your travel costs.
Booking in advance is the number one way to save money. Tickets are released 12 weeks in advance, so you need to book early to save money. A railcard will also cut costs. For example there's the Family & Friends Railcard which cuts a third off your ticket costs, and will set you back £30 a year.
Using a website which doesn’t charge an extra fee when you pay on a credit or debit card is also worthwhile. East Coast, for example, charges no extra fees, whereas the Thetrainline.com does.
Read Cut the cost of your train fare.
Keep on top of how much your travel is costing you with our budgeting tool MoneyTrack
Rising travel costs
A cap in train ticket prices is positive, it still doesn't address the problem that our train fares are some of the most expensive in the world. The increase in January of 4.1% marks a 40% increase since 2008.
If the train network operated efficiently this news would be slightly easier to swallow, but given the fact delays are a regular occurrence it's hardly welcome. My daily commute with First Capital Connect is not a fun experience and on the rare occasion when the trains are actually running on time, it's impossible to get a seat so I spend the journey crammed into a dirty, over-crowded carriage with hundreds of other stressed-out commuters.
This is the case across the country. And as most people can't choose when they travel, they're forced to endure their daily commute in awful conditions while paying through the nose for the privilege.
I think the Government needs to go much further when it comes to train costs. It's not fair we are paying such extortionate fees for such a terrible service, especially at a time when our finances are being squeezed from every angle. Lowering the cap sounds good on paper but given that it was already too high the benefit is somewhat limited.
What do you think about the cap? Is it fair or do you think it should be lower? Let me know in the comments box below.