Connect with us

Hi, what are you looking for?

Investing

Commuters face inflation-busting rail fare hike to help pay for coronavirus

Rail Commuters

Commuters will face an above-inflation hike in rail fares next year, the government has announced.

Regulated fares – which include season tickets – will go up by an average 2.6%, though the increase will be delayed from January until 1 March, the Department for Transport said.

It is one percentage point higher than the 1.6% RPI inflation rate measured in July this year – the benchmark figure which has been used in every year since 2014 to cap price rises.

The Department for Transport (DfT) said the peg to the cost-of-living increase had been abandoned because of billions in taxpayer support being used to subsidise the railways during the pandemic.

But Mick Cash of the Rail, Maritime and Transport union said ticket prices were being “forced up to subsidise private profit”.

Despite being higher than inflation, the 2.6% increase will still be smaller than last year’s increase.

The DfT said the delay in the fares hike to March offered commuters who could not work from home a window to renew season tickets at the existing rate.

It added that more than £4bn had been invested to support the railways since the start of the pandemic, expected to rise to £10bn.

The government took over rail franchise agreements from train operators in March following the collapse in demand caused by the pandemic.

Rail minister Chris Heaton-Harris said: “By setting fares sensibly we are ensuring that taxpayers are not overburdened for their unprecedented contribution, ensuring investment is focused on keeping vital services running and protecting frontline jobs.”

Jacqueline Starr, chief executive of the Rail Delivery Group, representing train operators, acknowledged that “passengers will be disappointed”.

The use of the RPI measure of inflation to set fare increases is already controversial because it tends to be higher than the more widely used CPI measure. This year CPI stood at 1% in July.

Manuel Cortes, general secretary of the Transport Salaried Staff Association, a union, said the above-inflation rise was “extortionate and plain daft”.

“Given the massive economic fallout from the virus, the last thing we need to see is a kick in the teeth for passengers,” Mr Cortes said.

Read more:
Commuters face inflation-busting rail fare hike to help pay for coronavirus

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Loxon Philippines, Inc. (LPI), one of the country’s leading specialty engineering contractors of fully integrated building management systems for the protection of life and...

Economy

MORE than half of students in the Philippines consider temporarily dropping out of school until the coronavirus pandemic ends mainly due to difficulties in...

Economy

The Public Works department has ramped up the completion of projects such as the Sta. Monica-Lawton Bridge also known as the Kalayaan Bridge. —...

Economy

THE BUREAU of the Treasury (BTr) raised its planned borrowings from the local market to P235 billion in July, as it seeks to offer...

Economy

By Jenina P. Ibañez, Reporter MANILA is the 78th most expensive city for expatriates to live in according to Mercer’s 2021 Cost of Living...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!