LONDON (Alliance News) - Regulated rail fares in England and Wales will rise by an average of 3.5% from January 2015, after July's retail price index on which fare increases are based rose by 2.5% on the year.
The UK government allows rail firms to raise average regulated fares using a formula of July's retail price index plus 1%. Regulated fares include season tickets and some standard return fares, as well as most commuter fares in and around London.
Train companies are also given the flexibility to raise fares by 2% above the average, as long as the overall average stays at RPI plus 1%. That means fares on some routes could rise by as much as 5.5%, as long as fare increases are also below average on other routes.
The retail price index was down 0.1% month-on-month in July, the Office for National Statistics said Tuesday. That meant the year-on-year increase was 2.5%, down from the 2.6% year-on-year increase reported for June.
Rail fares have been rising by more than the rate of inflation in most years for the past decade. The government says the increases are necessary to help fund necessary improvements to the rail network, but consumer campaigners say rail passengers, particularly those on cramped commuter routes into major cities are not seeing the benefits that they are paying for.
?With people?s wages stagnating and in some cases falling, the expense of taking the train to work has become a huge part of living costs. If the Government doesn?t put an end to above-inflation fare increases quickly, ordinary commuters will be priced off the train and could be forced into agonizing decisions such as moving house or quitting their jobs,? Martin Abrams, Public Transport Campaigner for Campaign for Better Transport, said in a statement.
Rail fare increases in Scotland are set by the Scottish parliament.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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