Post by wirewiper on Dec 22, 2022 14:16:59 GMT
The Government has confirmed that next year's rail fares rise will be 5.9%. Unusually this has been tied to average wage growth, rather than the rate of inflation in the preceding July - in 2022, the RPI (Retail Price Index) stood at 12.3%. It has also notably been deferred until 5th March when it would normally come into effect in early January.
The 5.9% does not apply across all regulated fares equally, as companies have leverage to increase some fares by more or less than the benchmark to balance out demand, so long as the average increase across all regulated fares does not exceed 5.9%.
Regulated fares account for 45% of ticket sales and include most commuter season tickets, some off peak fares on longer journeys, and anytime fares. Advance fares and First Class fares are not regulated which means that some companies may be tempted to increase these by more than 5.9% to compensate for lost revenue.
Transport for London will find itself in an awkward situation, as it is required to raise its fares by RPI+1% but will find its share from National Rail ticket sales at less than half that. It may have to raise the cost of TfL fares by even more to meet the government funding agreement.
www.ianvisits.co.uk/articles/regulated-rail-fares-to-rise-by-nearly-6-in-march-2023-59537/
The 5.9% does not apply across all regulated fares equally, as companies have leverage to increase some fares by more or less than the benchmark to balance out demand, so long as the average increase across all regulated fares does not exceed 5.9%.
Regulated fares account for 45% of ticket sales and include most commuter season tickets, some off peak fares on longer journeys, and anytime fares. Advance fares and First Class fares are not regulated which means that some companies may be tempted to increase these by more than 5.9% to compensate for lost revenue.
Transport for London will find itself in an awkward situation, as it is required to raise its fares by RPI+1% but will find its share from National Rail ticket sales at less than half that. It may have to raise the cost of TfL fares by even more to meet the government funding agreement.
www.ianvisits.co.uk/articles/regulated-rail-fares-to-rise-by-nearly-6-in-march-2023-59537/
