18 Aug 2015

Rail fares rise ‘three times faster’ than wages

Report by TUC union show rail fares rising faster than wages over the last five years as announcement is expected that fares for next year will rise just one per cent – the lowest rise since 2002

Rail fares have risen three times faster than wages, a new report has shown.

Regulated ticket prices increased by 25 per cent between 2010 and 2015, while average pay rose nine per cent during this period, according to a study by the union TUC.

Unions say that the “rocketing” rises mean that commuters have been left “seriously out of pocket for years”.

However low inflation means that next year could be the first time in many years that commuter’s raising salaries could beat the annual far rise.

Economists have predicted that inflation measure used to calculate rail fares will be around one percent — the month that annual rises are set by. That would make 2016 the first year that wage growth has outpaced fare rises since 2002.

A rise of 1 per cent would add 5p to the average single fare of £5.32. An annual season ticket from Cheltenham Spa to London will go up by about £97 to £9,800.

The TUC general secretary, Frances O’Grady, said: “Rail fares have rocketed over the last five years, leaving many commuters seriously out of pocket.

“If ministers really want to help hard-pressed commuters they need to return services to the public sector.

“This is a fair, more sustainable option and it would allow much bigger savings to be passed on to passengers.”

Automatic refunds for delays planned

It comes as ministers announce that rail passengers will receive automatic refunds for later or cancelled trains under new government plans.

They say that commuters should not have to “jump through hoops” to claim for delays.

Up to nine in ten passengers fail to make regular claims for delays.

Under the new proposals, they could be compensated directly into their bank account or on to a smartcard as they leave the platform after taking a train that was delayed for as little as two minutes.