Rail passengers
are set to benefit from lower rail fares from January 2010
following today's announcement that the Retail Price
Index (RPI) stood at -1.4% in July this year.
On the majority of rail journeys fares are regulated by the
Government. Increases to most of those fares are capped at RPI+1%
with the changes implemented in January, based on the previous
July's RPI figure.
The RPI figure published by the Office for National Statistics
today means that next January most regulated fares will have to fall.
The Government has also taken away the flexibility for operators
to raise individual regulated fares by up to 5% above the national
fare change, protecting passengers from unduly steep rises in
regulated fares next year.
Transport Secretary Andrew Adonis said:
“Today’s RPI figure of -1.4% means that the majority of regulated
rail fares, including most commuter fares, will fall in January.
“This is good news. For the first time in a generation passengers
across the country will see their fares fall. Drops in fares
should encourage more people to travel by train, which is good for
the economy and the environment.
“In addition I am removing train operators' ability to
increase individual fares next year by up to 5% above the national
fare change. This means most regulated fares will fall in line
with the national fare change, which will be welcomed by passengers."
Notes to Editors
1. Two train operators are currently excepted from the RPI+1% rule:
· Southeastern has a higher cap of RPI +3% for five years from
2007. This is in recognition of historically low fares on
Southeastern and to allow for the investment recently made in the
Kent services.
· In the Northern franchise, West Yorkshire PTE fares also have a
higher cap of RPI +3% from 2007 until the end of the franchise to
enable investment in additional trains in and around Leeds.
2. Previously, train operators have been allowed to increase
individual regulated fares by as much as 5% above the average cap
on regulated fares so long as the average increase across their
'basket' of fares was no more than RPI+1%.
Andrew Adonis announced in, February 2009, his intention to remove
this flexibility for 2010.
3. The regulation of rail fares in Scotland, Wales and Liverpool
and London Overground are matters for the Scottish Parliament,
Welsh Assembly Government, MerseyTravel and Transport for London respectively.
4. Since 1997 regulated fares have risen by about 5% in real
terms while disposable income has increased by over 20%.
5. The RPI+1% formula does not apply to unregulated fares which
are set on a commercial basis by train operators.
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