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The Government is coming under pressure to cap rail fares for another year as July inflation data signalled potential further misery ahead for commuters.
The Retail Price Index (RPI) rose last month by 3.6 per cent over 12 months, the Office for National Statistics revealed on Wednesday. Increases to regulated rail fares for the following year are historically set according to the rate of RPI each July, plus one per cent.
This would land some commuters with a 4.6 per cent hike to their travel bills.
Liberal Democrat Treasury spokeswoman Sarah Olney said “countless people are still paying the price of Conservative mismanagement”, highlighting mortgage payments and the cost of food as well as rail fares.
The Richmond Park MP told the Standard: “Across the country, commuters have seen their train ticket prices soar, whilst their services are constantly delayed or cancelled, creating endless disruptions to people’s journeys.
“It will be a slap in the face for commuters if ticket prices increase again next year, forcing millions to spend more on services that simply aren’t up to scratch. That is why the Liberal Democrats are calling to freeze railway fares to help commuters keep more money in their pocket.”
If Labour ministers stick to the RPI-based formulata used since rail privatisation, it would mean fare increases in 2025 of about one per cent below current rates of wage growth, still uncomfortably high for many.
It would translate to an annual season ticket from Reading to London going up £258 to £5,858. The price from Sevenoaks to London would rise by £202 to £4,598, while fares from Surbiton would increase £69 to £1,564.
However, the previous Conservative government suspended the RPI rail fares link for the past two years during the worst of the cost-of-living crisis.
For this year, the increase for most regulated fares was capped at 4.9 per cent, against last July’s RPI figure of 9 per cent. Ministers also postponed the increase to March 3, instead of enacting it on the first working day of January as is usual.
The Labour government has yet to confirm whether it will continue with the cap for another year, but Chancellor Rachel Reeves has made clear that departments face painful choices ahead of her budget on October 30.
A Department for Transport spokesman said: “The Transport Secretary is delivering the biggest overhaul of our railways in a generation, to provide better services for passengers, while saving millions of pounds in fees paid to the private sector.
“No decisions have been made on next year’s rail fares but our aim is that prices are as affordable as possible for passengers.”
The Government is meanwhile legislating to bring all passenger railway services back into public ownership when existing private contracts end.
Anti-privatisation group We Own It said ministers should seize “a historic opportunity to create a rail fares policy that puts passengers first”.
There was a glimmer of hope for long-suffering commuters on the train drivers’ pay dispute, with more talks being held on Wednesday after 18 rounds of strikes over more than two years.
Aslef union chief Mick Whelan has expressed optimism for a deal after Labour won the election last month.
