Fare rises '24 - first talk based on current inflation figures

[whole diary]

[grahame]

From "The Standard"

Commuters face hefty rail fare increases next year which could add hundreds of pounds to season tickets even though inflation is falling.

Train prices are “already too high” compared with many other European countries, they stressed, and further rises would be a “kick in the teeth”.

in explanation:

Yearly rises in the cost of regulated tickets are normally closely linked to Retail Price Index inflation, as measured in the previous July. But ministers ditched the RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)), plus or minus one per cent, formula last year to avoid a whopping increase of 12.3 per cent, after inflation sky-rocketed.

Instead, they aligned this fare rise to July 2022’s average earnings growth to come up with a figure of 5.9 per cent, delayed from January until March. At the time, the Government insisted this was “for this year only”. But it now faces a similar dilemma. RPI was 10.7 per cent in June, with some economists predicting a drop to 9.8 per cent last month.

What do members think the government will do?   What do they think they should do??

[CyclingSid]

Who do you think wants to win the election?

[grahame]

Who do you think wants to win the election?

I can answer with a question too 

Is putting up rail fares significantly a way for The Government to say to the majority of people who do NOT use trains "we're making the users pay more of the costs of their services so we can keep your tax bill down and spend more on roads"?

[TaplowGreen]

Who do you think wants to win the election?

I can answer with a question too 

Is putting up rail fares significantly a way for The Government to say to the majority of people who do NOT use trains "we're making the users pay more of the costs of their services so we can keep your tax bill down and spend more on roads"?

It's not an issue which will in any significant way influence the outcome of the next election, but the Government would more likely, say "we're making the users pay more of the costs of their services as the alternative is yet more subsidy for the railways which means less money for the NHS and schools"

[PhilWakely]

From "The Standard"

Commuters face hefty rail fare increases next year which could add hundreds of pounds to season tickets even though inflation is falling.

Train prices are “already too high” compared with many other European countries, they stressed, and further rises would be a “kick in the teeth”.

in explanation:

Yearly rises in the cost of regulated tickets are normally closely linked to Retail Price Index inflation, as measured in the previous July. But ministers ditched the RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context)), plus or minus one per cent, formula last year to avoid a whopping increase of 12.3 per cent, after inflation sky-rocketed.

Instead, they aligned this fare rise to July 2022’s average earnings growth to come up with a figure of 5.9 per cent, delayed from January until March. At the time, the Government insisted this was “for this year only”. But it now faces a similar dilemma. RPI was 10.7 per cent in June, with some economists predicting a drop to 9.8 per cent last month.

What do members think the government will do?   What do they think they should do??

If the Government decide to do a similar thing as this year, then local Devon journeys will get the full inflation increase! The 'official' increase in March and a further increase in June/July making up the full inflation increase.

[ChrisB]

Thjey are cheaper than elsewhere in the region on a pence per mile basis...

[grahame]

From the BBC^» (British Broadcasting Corporation - home page)

Regulated train fares in England will again rise below the rate of inflation next year, the government has said.

The move is meant to help people with the soaring cost of living and follows a similar intervention in 2023.

Any rises will once more be delayed until March 2024, rather than kicking in in January as was normal pre-Covid.

[ChrisB]

Average earnings rose by 7.1%  last year, announced earlier today, if that is the same statistic as used in March this year to raise regulated fares. That currently is below inflation. Let's hope inflation falls further before the final figure is announced such that they can't even use 7.1% in March next year.