Rail fares to go up 3.8 per cent from March, adding to increasing living costs
The Department for Transport announced today that from March rail fares will go up 3.8 per cent, 3.3 per cent less than the current price index (RPI) of 7.1 per cent.
The government’s decision will add to the increasing costs of living, fuelled by a 5.1 per cent hike in inflation rates – the highest in a decade.
“Capping rail fares in line with inflation while tying it to the July RPI strikes a fair balance, ensuring we can continue to invest record amounts into a more modern, reliable railway, ease the burden on taxpayers and protect passengers from the highest RPI in years,” said rail minister Chris Heaton-Harris in a statement.
“Delaying the changes until March 2022 offers people the chance to save money by renewing their fares at last year’s price. That includes the 100,000 people who are already making savings with cheaper and more convenient flexible season tickets.”
Commenting on the news, Kevin Brown, Scottish Friendly’s savings specialist said: “
“Hiking rail fares by 3.8% will inflict even more misery on households at a time when many are working hard to make ends meet. Living costs are going up across the board and with fuel prices soaring over the last three months this is yet another hammer blow for commuters.
“Rail passengers have been held to ransom by train companies for too long and now it’s the government adding to their woes.”
The government had raised fares by one per cent above the retail price in March, citing the need for passengers to pay more to offset pandemic-related rail expenses.
The DfT’s announcement came a couple of weeks after reports alleged the government had postponed the decision following backlash caused by the HS2 cuts, City PM reported.
Even though the Integrated Railway Plan was condemned by both stakeholders and passengers – as it cut HS2’s eastern leg connecting Birmingham and Leeds – transport secretary Grant Shapps argued the changes to the plan would “bring benefits at least a decade more or earlier,” achieving “the same, similar or faster journey times to London on the core network than the original proposals”.