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How do you solve a problem like rail fares?

Peer review: Claire Perry
Parliamentary Under-Secretary of State for Transport

The UK’s railways are a real success story. More passengers than ever before are taking the train and we are responding to that demand by investing in the biggest rail improvement programme since Victorian times.

From the new Intercity Express trains that will roll out on the East Coast and Great Western routes from 2017, to a transformed franchising programme that this year alone has successfully delivered three major franchises in Essex Thameside, Thameslink and East Coast, passengers are already benefiting from more trains, more services and better journeys. And with more than £38 billion being invested in the network over the next five years, passengers can look forward to even more improvements.

Fares are crucial to funding this transformation of the rail network. But, as more and more people choose to travel by train, I am absolutely determined that we develop a modern, flexible fares system that meets their needs and expectations.

Much has been achieved since we published the conclusions to our Fares and Ticketing Review in 2013. This set out our vision for a modern and customer-focused fares system, and we have already delivered important changes for passengers.

Perhaps the most significant improvement is that, for two years running, we have imposed a real-terms freeze on regulated fares, capping them at RPI+0% for 2014 and 2015.

During 2015, train operating companies will also no longer be able to increase individual fares by up to 2% more than the permitted average increase. By preventing operators from raising fares by excessive amounts, we are protecting passengers from large rises at a time when family incomes are already being squeezed.

We are also rolling out smart ticketing, with the aim that by 2016, passengers in the South East will be able to use tickets on other forms of transport. This will also allow flexible ticketing products to be designed around the needs of the customer - as well as providing a model with the potential to be rolled out across the rest of the UK.

I am also keenly aware that the information given to passengers when they buy tickets from vending machines isn’t always good enough, and that this can prevent them from getting the best value fare for their journey.

I have asked the rail industry to look at this and it is clear to me that they are committed to making real improvements. It is of critical importance - both for passengers and for the reputation of the industry - that passengers are able to confidently select the most appropriate ticket for their journey and are helped to understand the terms for using it. 

Work is also under way on possible future improvements. The Department will be running a trial to explore Single Leg Pricing, which could offer passengers increased choice, flexibility and opportunity for savings, while simplifying the confusing scenario of some single tickets costing nearly as much as a return.

Getting the fares and ticketing offer right is integral to our long-term economic plan of delivering a world-class railway.

As new tickets and technologies are developed, I want the Government to be at the forefront of making sure passengers get a great deal every time they travel.