Secretary of State for Transport said:
“I understand that passengers are frustrated rail fares keep
rising despite unacceptable levels of delays and cancellations,
which is why this Government made sure this was the lowest
increase in three years, and below the growth in average
earnings.
“We inherited a railway that was not fit for purpose, and I know
it will take time for trust to be restored, with trains turning
up on time, when and where they're needed.
“My number one priority is getting the railways back to a place
where people can rely on them and, through public ownership and
the creation of Great British Railways, we'll be putting
passengers at the heart of everything we do, delivering the
services they deserve and encouraging growth across the country
delivering on our Plan for Change.”
Background
- Most regulated rail fares will increase by 4.6% on 2 March
2025. This is one percentage point above RPI inflation in July
2024. RPI inflation in January 2025 was also at 3.6%.
- This increase of 4.6% is lower than current annual growth in
employees' average earnings (excluding bonuses) which was 5.9%
from October to December 2024.
- Regulated rail fares have increased closely in line with RPI
inflation most years since 1996 under successive governments.
Further background
Why rail fares need to increase:
- Our railways are one of the cornerstones of our
infrastructure, allowing access to jobs, education and
healthcare, and fuelling our economy.
- The rail network is funded through government investment and
revenue from rail fares, which is why it's essential that rail
fares are kept at a level that's fair to both the passengers that
use the railways, and taxpayers that don't.
- We inherited a railway in a dire financial state, after the
pandemic made an even greater hit, and so a proportionate, annual
increase to rail fares is necessary for keeping the trains moving
and ensuring the network gets back on a good financial footing.
- The current system allows for huge amounts of fragmentation
and waste. Bringing operators into public ownership will save
taxpayers up to £150 million a year that will be invested
straight back into the railways rather than the pockets of
private shareholders.
Measures to ensure fares are affordable
- This is it the lowest absolute increase to rail fares in
three years, and lower than the current annual average growth in
employees' regular earnings.
- Our aim is to keep the price of rail travel at a point that
works for the passengers that use the railway and the rest of the
taxpayers who do not.
- The railways are in a dire financial state, with huge amounts
of fragmentation and waste. Bringing operators into public
ownership will save taxpayers up to £150 million a year that will
be invested straight back into the railways rather than the
pockets of private shareholders.
Rail fares increasing amid poor performance
- Any increase to fares must balance the needs of passengers
that use the rail network and taxpayers that don't.
- We are delivering legislation through Parliament that will
smash a broken railway system and build a new one that puts
passengers at the forefront of all decisions made on the
railways.
- While launching a consultation for the Railways Bill last
week, we set out plans that would unite track and train under one
directing mind – Great British Railways. This will put an end to
outdated and inefficient processes which have resulted in poor
performance and issues which impact passengers most like
complicated fares and ticketing.
- Great British Railways will have a relentless focus on
putting passengers and customers first and will be held to
account by a new independent passenger watchdog.
- These reforms will drive up performance, encouraging more
people to take the train and help to get the network back on a
good financial footing.
Government action to reform fares and ticketing
- Contactless ticketing was rolled out to 53 more stations
across the South East this year, offering passengers better value
train journeys by guaranteeing the best fare at that time on the
day.
- We are also working with devolved leaders on plans for
further expansion in Greater Manchester and the West Midlands.
- Trials for digital pay as you go will also take place later
this year across the North and the Midlands that will mean
thousands of passengers can use GPS-based contactless ticketing
paying via their phone.
- We also recently announced that once set up, Great British
Railways will retail online by bringing together individual train
operators' ticket websites, simplifying the complex web of train
operator platforms.
UK rail fares compared to other countries
- Some of our fare types are the cheapest in Europe,
particularly when booked in advance.
- England has one of the widest ranges of fare prices in Europe
– while some are more expensive than our European neighbours',
other fare types are among the cheapest.
Price increase to railcards
- Railcards offer on average savings up to £158 annually,
meaning railcards will continue to offer significant value for
money. A £5 price increase is far lower than the increase in
inflation since railcard prices last changed or railcards were
introduced.
- There will be a £5 increase to the price of most railcards
from Sunday 2 March, except the Disabled Persons Railcard. This
means most railcards will rise from £30 to £35 a year.
- This will be the first price increase to railcards in over a
decade, or since they were introduced (depending on the type of
railcard).
