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Home Europe

UK to keep five-year hold on regulated rail fares cap at 1% RPI

20th August 2015
in Europe, News, Railway
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The UK Government has decided to extend the five-year hold on regulated rail fares at 1% Retail Prices Index (RPI) inflation.

From January next year, no regulated rail fares will rise by more than that RPI setting the lowest fare increase since 2010.

The Office of National Statistics revealed that the RPI figure for July was 1%. The government currently uses these figures to calculate regulated fares for the following year.

Rail minister Claire Perry said: “This will make a real difference to household budgets, saving season ticket holders around £425 each over the next five years.

“This will make a real difference to household budgets, saving season ticket holders around £425 each over the next five years.”

“It also means that for first time since 2002, wages are increasing by more than fares, which is real progress for the passenger.”

Over the past five years, rail fares in UK have increased about three times faster than wages in the country, which went up by 9% between 2010 and 2015.

A new analysis recently published by the Trades Union Congress (TUC) and the rail unions’ Action for Rail campaign revealed that rail fares for season tickets and other regulated fares in the UK increased by 25% over the last five years.

According to the UK Department of Transport (DfT), the fares will support rail modernisation programme for more than a century, with £38bn in spending to enhance the network in the five years to 2019.

Meanwhile, a new scheme announced by rail minister will help passengers to will receive automatic compensation payments for delayed and cancelled train journeys, The Telegraph reported.

In UK, around £100m goes unclaimed every year as 90% of passengers fail to make regular claims for delay compensation.

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