Rail fares up 3.5% in new year

Rail fares will go up by around 3.5 per cent in the New Year in line with the Government's new guarantee that increases for most tickets do not exceed inflation, writes Christian Wolmar.

The new freedom given to the 25 train operating companies which are being prepared for privatisation has made the increases complicated. While some passengers will face increases of 4 or 5 per cent, the average rise will be 3.5 per cent in most of the South east and on some InterCity lines.

Under the new system imposed by the franchising director, Roger Salmon, fares for saver tickets, most standard singles and returns, and standard weekly seasons can only go up by the rate of inflation, measured as the rate last July, 3.5 per cent. But operators can increase certain fares by more than this, as long as other increases are lower, in order to ensure the average is 3.5 per cent.