Rail Delivery Group claims it’s the lowest rise for five years.
Rail fares will rise by an average of 2.2% from 2nd January 2015.
That’s according to rail industry body the Rail Delivery Group, which claims it’s the lowest average rise for five years.
How rail fare increases are decided
The average figure covers both regulated and unregulated fares.
Regulated fares include season tickets, off-peak return tickets and walk-up anytime single tickets.
These tickets are regulated by the Government in line with 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 second year running the Government altered its preferred calculation so the increase was pinned only to inflation, amid growing anger from commuters at high fares.
It also scrapped the flex rule, which allowed train companies to vary price increases by 2% above RPI across their routes on individual journeys.
[SPOTLIGHT]Regulated fares will rise by 2.5% in England and Wales. In Scotland peak fares will go up by 2.5% but off peak fares will be frozen for the second year running. In Northern Ireland, regulated fares are set separately and have not risen since 2013.
Rail operators are allowed to set the price of other fares, known as unregulated fares, as there is greater competition.
The Rail Delivery Group says discounting by train companies had contributed to the number of train journeys doubling since the mid-1990s. In 2012-2013, 47% of passenger revenue came from discounted tickets, up from 36% in 2002-2003.
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How train companies spend our money
According to the Rail Delivery Group rail operators only make 3p of profit from every pound.
Below is how the costs breakdown.
|
Service |
Proportion per £1 |
|
Investment in the rail network |
26p |
|
Maintaining track and trains |
22p |
|
Industry staff costs |
25p |
|
Interest payments and other costs |
9p |
|
Leasing trains |
11p |
|
Fuel for trains |
4p |
|
Train company profits |
3p |
Source: Rail Delivery Group
Michael Roberts, Director General of the Rail Delivery Group which represents rail operators and Network Rail, said: “Money from fares goes towards running and maintaining the railway. This benefits not just passengers and businesses but communities across the country, by improving journeys, creating employment and helping to boost the economy.
“Over the next five years, Network Rail is spending on average £27million a day on a better railway, alongside commitments made by train companies to improve services. That will mean more seats, better stations and improved journeys.”
See how you are impacted
From today fares for travel from 2nd January 2015 are available to check and buy, so you can check how your journey is impacted via the National Rail website.
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