Government lowers rail fare inflation cap
The Prime Minister has announced that regulated rail fares will rise by an average of 4.2% next January, as the inflation cap is reduced.
Rail fare price increases will be capped for the next two years, the Government has announced.
Passengers were facing average increases on regulated fares – such as season tickets and long-distance off-peak journeys – of 6.2%, using the Retail Prices Index (RPI) plus 3% method of calculation.
But the Prime Minister said the increase for the next two years will be RPI plus 1%, meaning the average increase will be 4.2%.
That formula will also apply to London’s underground and bus services. They had been due to rise by RPI plus 2%.
The fare increase is pegged to July’s RPI inflation figure, which this year came in at 3.2%.
There was widespread anger when it appeared that the 6.2% increase might be allowed to stand, with commuters complaining that it was another blow in a time of austerity.
The Department for Transport said that it is planning to cap the increase at RPI plus 1% from January 2015.
It says the change will be funded by savings from its budget.