You are here: Home - Household Bills - News -

Rail fares rise twice as fast as wages and will climb further next year

Written by: Paloma Kubiak
Rail fares have risen at double the pace of wages since 2010 and there’s more bad news for commuters as prices could rise by nearly 2% in January.

The price commuters pay for train and rail travel has risen by 25% in the last six years, but average weekly earnings have only gone up by 12%, according to new analysis by the Action for Rail campaign and TUC.

They are calling for an end to the rail rip off, stating that while fares have gone up and services slashed, dividends paid to shareholders of private train companies have risen to £222m in the last year – an increase of 21%.

But there’s more bad news for commuters as official figures from the Office for National Statistics (ONS) revealed the Retail Price Index (RPI) measure of inflation for the 12 months to July 2016 stood at 1.9%.

July’s inflation rate is used by the government as a benchmark to set a cap on how much regulated rail fares can rise by in England, Scotland and Wales (Northern Ireland has its own devolved scheme of setting rail fare prices).

As a result, regulated fares, including season tickets and some off-peak return tickets on long distance journeys, and anytime tickets around major cities could rise by as much as 1.9% in January.

The price increase excludes unregulated fares which aren’t overseen by the government; instead these are set by train companies, including first class tickets and advance purchase tickets.

About half of rail fare revenue comes from regulated fares, the other half from unregulated fares.

TUC General Secretary, Frances O’Grady, said: “Rail passengers are paying more and getting even less. Fares go up while trains remain overcrowded, stations are unstaffed, and rail companies cut the guards who ensure journeys run smoothly and safely.

“Enough is enough. It’s time for rail services to be publicly owned, saving money for passengers and taxpayers alike. Instead of increasing fares and cutting staff, we should be building an accessible, reliable train service that Britain can be proud of.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week