ATOC Announces 2008 Rail fares changes
28th November 2007
ATOC
The Association of Train Operating Companies (ATOC) today announced that rail fares will change as follows from Wednesday 2nd January 2008:
Rail fare rises compare favourably to utility prices: for instance, electricity and gas prices have risen by 21% and 56% respectively over the same time period in real terms.
The small increase in average rail fares partly reflects the fact that over half of tickets sold are price-regulated by the Government (see note 2) but also because many passengers now choose to use discounted fares such as advance purchase tickets, which offer significant reductions compared to full price tickets. The recent Government White Paper estimated that over 80% of passengers purchased either a regulated or discounted ticket.
The relatively low increase in average rail fares has been a factor in the enormous growth in rail travel seen over the past 10 years, with 42% more passengers using the rail network. Passenger numbers are now higher than at any time since 1946.
Increased revenue is needed to pay for the major new expenditure to further improve the railway. More than £800 million is now being spent on new and refurbished trains on CrossCountry, East Midlands Trains, First Great Western, First ScotRail, First TransPennine Express, GNER (shortly to become National Express East Coast), London Midland, Northern Rail, ‘one’ Railway and South West Trains.
Further investment is being committed to improve stations, including refurbished ticket offices, better waiting rooms, toilets and facilities for disabled people. It also provides for new ticket machines, information systems, closed circuit television and an increased number of car parking spaces.
Fare increases are also needed to fund reduced subsidies to some train operators and premium payments by others to the Department for Transport - an increasing feature of franchise agreements. Around £148 million of premium payments will be paid by train operators in 2008/9 rising to £1.28 billion of premium payments in 2014/15. The Government has recognised in its most recent franchise awards that unregulated fares are expected to rise by up to RPI+3%.
Passenger revenue will help to fund the extensive programme of investment recently announced by the government in its Railways White Paper, including Crossrail, the Thameslink project and the redevelopment of Birmingham New Street and major remodelling of Reading stations.
Revenue from rail fares also pays the costs of running the railway including leasing of train fleets; fuel costs which are rising fast; staffing and staff training; track access charges and other costs such as train maintenance and administration.
George Muir, Director General of ATOC, said:
“We need the revenue from fares to pay for investment in the railway for the benefit of passengers.
“We are providing a higher-performing railway with new, refurbished and more punctual trains and better stations. Nearly 91% of trains ran on time between April and September this year, the highest punctuality level for a decade”.
For further information, please contact the ATOC Press Office on 020 7841 8020.
Notes to Editors
(1) Table of Fares Rises by Train Operator
(RPI+/- figures shown = rise above/below the current Retail Price Index inflation level – 4.2% at October 2007)
Notes to table:
* CrossCountry: No increase in Advance Purchase fares
** First ScotRail: No increases:
(2) Retail Price Index and Regulated Fares
The pricing of regulated fares, which account for over half of tickets sold, is determined by the regulatory regime set by the Department for Transport (DfT). This allows for a rise of Retail Price Index (RPI) plus one percent (except Southeastern, which is RPI+3%) based on the July 2007 RPI figure, which was 3.8%.
(3) Price Indices
The price changes quoted for rail, bus, car, gas and electricity are based on published data from the Office of Rail Regulation (National Rail Trends 2006/7 year book) and the Office of National Statistics.
(4) Proportion of Passenger Volumes on Regulated and Discounted Tickets
Data is derived from analysis of rail industry revenue and volume data corroborated by data in the Government White Paper on Railways published in July 2007.
(5) Investment in Trains and Stations
The revenue from rail fares is spent on a wide range of improvements, including:
Better trains:
Many millions are being spent on refurbishing and improving stations including ticket offices, ticket machines, information systems, Closed Circuit Television, car parking and better waiting rooms, toilets and facilities for disabled people, by a range of train operators: c2c, East Midlands Trains, First Great Western, First ScotRail, First TransPennine Express, GNER (soon to become National Express East Coast), Merseyrail, Northern Rail, ‘one’ Railway, Southeastern and Virgin Trains.
A new station at East Midlands Parkway (for East Midlands airport) is to be built during 2008 and the Ebbw Vale line in south Wales is being re-opened with seven new stations later this year.
(6) Premium Payments
Premium payments have been estimated on the basis of published information from the Department for Transport and the Office of Rail Regulation.
(7) About ATOC
The Association of Train Operating Companies (ATOC) is the official voice for the passenger rail industry – representing train companies to the government and other opinion formers on transport policy issues. Britain's train operators are working together to change rail travel for the better. ATOC manages many joint activities for train operators including revenue allocation and settlement, impartial retailing, National Rail Enquiries, Railcard marketing, staff travel arrangements, international products and travel agent licensing.
- Regulated fares (e.g. Season Tickets, Savers and Standard Day Returns) will rise by 4.8% - an average of 0.6% above the current rate of inflation as measured by the Retail Price Index (currently 4.2%).
- Unregulated fares (e.g. Cheap Day Returns, long distance Open and Advance Purchase fares) will rise by varying amounts, according to train operator, with average fare rises of 5.4% - 1.2% above the current RPI. (See note 1)
Rail fare rises compare favourably to utility prices: for instance, electricity and gas prices have risen by 21% and 56% respectively over the same time period in real terms.
The small increase in average rail fares partly reflects the fact that over half of tickets sold are price-regulated by the Government (see note 2) but also because many passengers now choose to use discounted fares such as advance purchase tickets, which offer significant reductions compared to full price tickets. The recent Government White Paper estimated that over 80% of passengers purchased either a regulated or discounted ticket.
The relatively low increase in average rail fares has been a factor in the enormous growth in rail travel seen over the past 10 years, with 42% more passengers using the rail network. Passenger numbers are now higher than at any time since 1946.
Increased revenue is needed to pay for the major new expenditure to further improve the railway. More than £800 million is now being spent on new and refurbished trains on CrossCountry, East Midlands Trains, First Great Western, First ScotRail, First TransPennine Express, GNER (shortly to become National Express East Coast), London Midland, Northern Rail, ‘one’ Railway and South West Trains.
Further investment is being committed to improve stations, including refurbished ticket offices, better waiting rooms, toilets and facilities for disabled people. It also provides for new ticket machines, information systems, closed circuit television and an increased number of car parking spaces.
Fare increases are also needed to fund reduced subsidies to some train operators and premium payments by others to the Department for Transport - an increasing feature of franchise agreements. Around £148 million of premium payments will be paid by train operators in 2008/9 rising to £1.28 billion of premium payments in 2014/15. The Government has recognised in its most recent franchise awards that unregulated fares are expected to rise by up to RPI+3%.
Passenger revenue will help to fund the extensive programme of investment recently announced by the government in its Railways White Paper, including Crossrail, the Thameslink project and the redevelopment of Birmingham New Street and major remodelling of Reading stations.
Revenue from rail fares also pays the costs of running the railway including leasing of train fleets; fuel costs which are rising fast; staffing and staff training; track access charges and other costs such as train maintenance and administration.
George Muir, Director General of ATOC, said:
“We need the revenue from fares to pay for investment in the railway for the benefit of passengers.
“We are providing a higher-performing railway with new, refurbished and more punctual trains and better stations. Nearly 91% of trains ran on time between April and September this year, the highest punctuality level for a decade”.
For further information, please contact the ATOC Press Office on 020 7841 8020.
Notes to Editors
(1) Table of Fares Rises by Train Operator
(RPI+/- figures shown = rise above/below the current Retail Price Index inflation level – 4.2% at October 2007)
| Train Company | Average Regulated Fares Rise | Average Unregulated Fares Rise |
| Arriva Trains Wales | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| c2c | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| Chiltern Railways | 4.8% (RPI+0.6%) | 5.1% (RPI +0.9%) |
| CrossCountry* | 4.8% (RPI+0.6%) | 7.0% (RPI +2.8%) |
| East Midlands Trains | 4.8% (RPI+0.6%) | 7.0% (RPI +2.8%) |
| First Capital Connect | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| First Great Western | 4.8% (RPI+0.6%) | 6.1% (RPI +1.9%) |
| First ScotRail** | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| First TransPennine Express | 5.0% (RPI+0.8%) | 6.4% (RPI +2.2%) |
| Gatwick Express | 3.8% (RPI -0.4%) | 5.0% (RPI +0.8%) |
| GNER (for National Express East Coast) | 4.8% (RPI+0.6%) | 6.6% (RPI +2.4%) |
| Heathrow Express | N/A | Zero (RPI -4.2%) |
| Hull Trains | N/A | Zero (RPI -4.2%) |
| London Midland*** | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| Merseyrail | 3.8% (RPI -0.4%) | 5.0% (RPI +0.8%) |
| Nothern Rail | 4.8% (RPI+0.6%) | 5.7% (RPI +1.5%) |
| 'one' | 4.8% (RPI+0.6%) | 6.8% (RPI +2.6%) |
| Southeastern | 6.8% (RPI +2.6%) | 4.8% (RPI+0.6%) |
| Southern | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| South West Trains | 4.8% (RPI+0.6%) | 4.3% (RPI +0.1%) |
| Virgin Trains | 4.8% (RPI+0.6%) | 4.8% (RPI+0.6%) |
| AVERAGE | 4.8% (RPI+0.6%) | 5.4% (RPI +1.2%) |
Notes to table:
* CrossCountry: No increase in Advance Purchase fares
** First ScotRail: No increases:
- in Strathclyde
- Value Advance 2 fares
- Caledonian Sleeper Apex fares
- Standard Open Returns on Edinburgh / Glasgow to Inverness services
(2) Retail Price Index and Regulated Fares
The pricing of regulated fares, which account for over half of tickets sold, is determined by the regulatory regime set by the Department for Transport (DfT). This allows for a rise of Retail Price Index (RPI) plus one percent (except Southeastern, which is RPI+3%) based on the July 2007 RPI figure, which was 3.8%.
(3) Price Indices
The price changes quoted for rail, bus, car, gas and electricity are based on published data from the Office of Rail Regulation (National Rail Trends 2006/7 year book) and the Office of National Statistics.
(4) Proportion of Passenger Volumes on Regulated and Discounted Tickets
Data is derived from analysis of rail industry revenue and volume data corroborated by data in the Government White Paper on Railways published in July 2007.
(5) Investment in Trains and Stations
The revenue from rail fares is spent on a wide range of improvements, including:
Better trains:
- £45 million on the refurbishment of the High Speed Train fleet on GNER (soon to be National Express East Coast)
- £250 million new train fleet for First TransPennine Express
- £243 million being spent on two new fleets and also rolling stock refurbishment by London Midland
- £200 million spent on new engines and refurbishment of First Great Western’s High Speed Train fleet (53 train sets) giving more reliable and more comfortable journeys and greatly reduced emissions. Also, the refreshment of its West of England fleet
- Refurbishment of the train fleets on East Midlands Trains, South West Trains, Northern Rail, First ScotRail (including the Sleepers), and CrossCountry
- £40 million on the refurbishment of 60 Class 315 trains on ‘one’ Railway, with future work scheduled on the Class 317/6 and 321 trains.
Many millions are being spent on refurbishing and improving stations including ticket offices, ticket machines, information systems, Closed Circuit Television, car parking and better waiting rooms, toilets and facilities for disabled people, by a range of train operators: c2c, East Midlands Trains, First Great Western, First ScotRail, First TransPennine Express, GNER (soon to become National Express East Coast), Merseyrail, Northern Rail, ‘one’ Railway, Southeastern and Virgin Trains.
A new station at East Midlands Parkway (for East Midlands airport) is to be built during 2008 and the Ebbw Vale line in south Wales is being re-opened with seven new stations later this year.
(6) Premium Payments
Premium payments have been estimated on the basis of published information from the Department for Transport and the Office of Rail Regulation.
(7) About ATOC
The Association of Train Operating Companies (ATOC) is the official voice for the passenger rail industry – representing train companies to the government and other opinion formers on transport policy issues. Britain's train operators are working together to change rail travel for the better. ATOC manages many joint activities for train operators including revenue allocation and settlement, impartial retailing, National Rail Enquiries, Railcard marketing, staff travel arrangements, international products and travel agent licensing.
