Calls for rail fare freeze as July’s Average Earnings Growth rate published

12 September 2023

“The Government has yet to confirm next year’s rail increase, but if it follows the same formula as last year and uses today’s Average Earnings Growth rate, passengers will face eye watering increases. Rather than hammer rail passengers yet again, the Government should freeze rail fares – as they have done with fuel duty – until the long-promised ticketing reform takes place.”

Regulated rail fares, including standard day returns, season tickets and most commuter fares, make up almost half (45 per cent) of all fares and increases are set by the Government. Usually fares rise by the previous July’s RPI figure but in 2022, to avoid a double-digit fare rise, the Government used the average earnings growth rate instead and postponed the rise until 5 March (instead of January 2023).

This meant fares rose by 5.9 per cent, rather than 12.3 per cent (July 2022’s RPI figure), but this was still the highest rise in a decade (fares rose at six per cent in 2012).

If the Government uses a similar method to calculate next year’s rail fare rise, passengers will be subjected to a record-breaking fare hike with the average earnings growth rate now at 7.8 per cent – 8.1 per cent for private sector pay – the highest for two decades.

Out of 40 popular commuter routes into London, 27 could see season tickets go above £5,000 next year, and ten pass the £6,000 mark with an annual season ticket from Southampton to London costing over £7,000 (£7,218).

Campaign for Better Transport is calling for a fare freeze for 2024 in recognition of the burden high fares place on rail passengers and to bring rail passengers in line with car drivers who benefitted from a 13^th consecutive year of frozen fuel duty in this year’s Budget.

ENDS

See examples of season ticket costs into London

See examples of season ticket costs into regional stations

For further information please contact the press office on 07984 773 468 (calls only no texts) or communications@bettertransport.org.uk.

Notes to Editors

• From May to July 2023, annual growth in regular pay (excluding bonuses) was 7.8%, the same as the previous three-month period and the highest regular annual growth rate since comparable records began in 2001. Annual average regular pay growth for the public sector was 6.6% in May to July 2023, also the highest regular annual growth rate since comparable records began in 2001; for the private sector this was 8.1% and one of the largest annual growth rates seen outside of the coronavirus (COVID-19) pandemic period.
• The 13-year long fuel duty freeze has meant a real terms tax cut for motorists which has benefitted the top fifth of earners twice as much as the bottom fifth: 12% of the benefits go to the poorest fifth, while 26% go to the richest.
• The Williams-Shapps Plan for Rail, published in May 2021, promised a fundamental reorganisation of the rail sector and a ‘root and branch’ reform of the ticketing system’ to provide a better deal for rail passengers. The reform of the ticketing system has yet to take place.
• Campaign for Better Transport was founded as Transport 2000 on 6 February 1973. 2023 marks its 50^th year of campaigning for all communities to have access to high quality, sustainable transport that meets their needs, improves quality of life and protects the environment. Campaign for Better Transport Charitable Trust is a registered charity (1101929) which operates in England and Wales.

*Fares rose at RPI+1 for these years **Fares rose at 5.9% after government intervention

RPI and CPI figures: https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/czbh/mm23