Rail firms have paid out more than £1bn in shareholder dividends over last six years, says TUC union

Rail firms have paid over £1bn to shareholders in last six years, according to trade union analysis on the same day that a 3.1 per cent hike in fares was announced for passengers.

The fare increase, set under the retail price index (RPI), will see many rail season tickets increase by more than £100.​

According to the union, UK commuters spend up to five times as much on season tickets than their European counterparts.

A trip from Chelmsford to London for a person on an average monthly earning of £3,082 will make up 13 per cent of their pay, whereas a comparable commute would cost two per cent, in France, three per cent in Ireland and four per cent in Germany and Belgium. 

Source: TUC

TUC general secretary Frances O’Grady said: "The most reliable thing about our railways is the cash that goes to private shareholders each year. But with the most expensive fares in Europe, that can’t be right. It’s rewarding failure and taking money away that should be invested in better services.

“It’s time to take the railways back into public hands. Every penny from every fare should go back into the railways. The number one priority should be running a world class railway service, not private profit.”

Robert Nisbet, regional director of the Rail Delivery Group, which represent the rail industry, said: “We understand that nobody wants to pay more for their journey to work but money from fares is underpinning record investment to build the better railway customers want and the country’s economy needs."

Meanwhile, transport secretary Chris Grayling blamed striking rail unions for the fare hike.

"The reality is the fare increases are higher than they should be because the unions demand – with threats of national rail strikes if they don't get them – higher pay rises than anybody else,” he told the BBC.