Fare rises - government cap changed on regulated fares

[whole diary]

[grahame]

Price rises in the next round are to be limited to 3% not 6% above inflation, although the total basket rise on regulated fares remains unchanged.

http://metro.co.uk/2013/10/09/new-rules-spell-the-end-of-11-season-ticket-rises-on-trains-4139724/?

The cost of tickets will only be able to rise three per cent above inflation, a cut from six per cent.

It is hoped the change will stop train companies from maximising profits by cutting fares on quiet routes and raising them on busy commuter lines.

and

At present, operators must keep fare rises across their routes to an average of one per cent above inflation. However, companies can increase prices on individual routes by up to six per cent above inflation, meaning some passengers have seen rises of 11 per cent.

Anthony Smith of Passenger Focus said: ^We have been calling for this to happen for years ^ it is a step towards a fairer system. This will allow passengers to plan with a bit more certainty.^

The Association of Train Operating Companies also said its members were happy with the proposals, which would limit flexibility when setting fares.

Commercial director David Mapp added: ^Train companies and passengers will welcome the planned reduction in flex. The reduction being proposed is in line with what has been suggested by train companies and should help to encourage greater rail use.^

[JayMac]

It's still RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context))+1%, which for January 2014 is 4.1%, as the headline raise, but now train companies will be limited to an additional flex of 2% in a fares basket instead of the previous 5%. The additional 2% on any regulated fare has to be balanced by regulated fares that rise less, or fall.

[grahame]

It's still RPI^▸ (Revenue Protection Inspector (or Retail Price Index, depending on the context))+1%, which for January 2014 is 4.1%, as the headline raise, but ...

Indeed.   It struck me as additional management / limiting by the Department for Transport, and something that's potentially going to earn them brownie points for keeping fares down, without in fact making a penny difference.  Indeed it actually reduces the ability to correct distortions - looks like we'll be splitting at Didcot for years to come ...

[ChrisB]

Government Fares & Ticketing Review can be found here(84 pages, 1Mb)

Transport Secretary Patrick McLoughlin^s Written Ministerial Statement on the Fares and Ticketing Review is  here

And finally, Transport Secretary Patrick McLoughlin^s speech to the Rail Industry following the Fares and Ticketing Review is here

[Southern Stag]

Remember that the +5% flex had actually been removed entirely, but briefly, by Andrew Adonis whilst he was the Secretary of State for Transport under the last government but one of the Coalition's first transport policies was to reintroduce it.