Passengers warned to expect inflation-busting fare rises

Rail campaigners reacted with anger after the latest round of fare rises revealed some tickets will increase in the new year by more than double the rate of inflation.

Regulated fares, which include season tickets, are rising by an average of six per cent from January 2, 2009, while unregulated fares, which include most leisure and advanced-fare tickets, will be rising by an average of seven per cent – with some fares going up by an average of more than 11 per cent.

Passengers in the South West will be among those hardest hit with train operator CrossCountry, which runs trains through Somerset, Bristol and Gloucestershire, announcing its unregulated fares will rise in January by an average of 11 per cent.

Regulated fares are based on a set formula which limits increases to one per cent above retail price index (RPI) inflation.

But the bad news for train travellers is that the fares for a new calendar year are always set at whatever the RPI figure was the previous July.

This year's July RPI was five per cent – a figure that has now dropped, too late for commuters, to 4.2 per cent.

Yesterday's announcement came on the day the Western Daily Press reported that shocked commuter Nick Mayell vowed never to use the railways again after he was charged a staggering £327 for a return journey between Bath and Northallerton, in North Yorkshire.

Train company First Great Western said Mr Mayell's fare was so expensive because he travelled at peak time and did not buy his ticket in advance. A standard off-peak ticket for the same journey would have cost £135.

Announcing the January rises yesterday, the Association of Train Operating Companies (Atoc) said the increased revenue would help pay for major investment to improve the railways and deliver better value for taxpayers in line with Government policy to reduce subsidy to the railway by 40 per cent between 2006 and 2014.

Atoc said train operators were currently carrying out work worth more than £800 million to introduce new trains, refurbish existing fleets and improve stations.

Michael Roberts, Atoc chief executive, said: "Record performance and better services have contributed to the highest number of passengers travelling by rail for 60 years. The January fare changes mean that train companies can continue investing in an even better railway and still offer a range of good deals for customers."

The highest annual increase is for unregulated fares on CrossCountry services – up by an average of 11 per cent with regulated fares will up by an average of six per cent.

Another company with big unregulated-fare increases is South West Trains, which runs services between Bristol and London and Exeter and London, via Yeovil and Salisbury, up 7.2 per cent. Its regulated fares will increase by an average of six per cent.

First Great Western, which runs the majority of services in the South West, will increase regulated fares by an average of six per cent, while unregulated fares will go up by an average 6.6 per cent.

In contrast, London Midland has frozen its unregulated fares which, in effect, will go down five per cent.

Gerry Doherty, leader of transport union TSSA, said: "If every other business is cutting prices, why should the rail companies be allowed to get away with daylight robbery?"

Shadow transport secretary Theresa Villiers said the Government had let down passengers by not providing value for money.

Liberal Democrat MP Norman Baker called for fares to be frozen and said passengers deserved to be treated like motorists.

He said: "The Government has repeatedly frozen fuel duty for motorists in the light of external circumstances, despite the fact that under Labour the cost of motoring has actually fallen in real terms by 10 per cent."

Anthony Smith, chief executive of customer watchdog Passenger Focus, said: "Some train companies deserve credit for limiting some unregulated rises. However, rises way above inflation are unjustified and unfair. These average fares will no doubt mask some very steep rises on particular routes. We will study the real impact as we unearth the details in the next few days."

He added that linking fares to inflation had served passengers relatively well in calmer times, but the Government now needed to take a fresh look at consumer protection and fares.