December 2023
Dear Constituent,
Thank you for contacting me about the affordability of transport.
I recognise your concerns relating to the affordability of transport at this very difficult time. I know these concerns are shared at the heart of Government and tangible action is therefore being taken on bus and rail fares to help millions of people travel at reduced cost during this challenging period.
As you may know, rail fares will be rising by 4.9 per cent from March 2024. This is 4.1 percentage points below the July 2023 RPI on which these fares are historically based. Normally, the Government increases fares by RPI plus one per cent each year, but this formula will not be applied in 2024 as it wasn't in 2022 and 2023. Capping rail fares at 4.9 per cent follows measures in 2023 that represented the biggest ever government intervention in rail fares, ensuring that the Government can continue to invest in a more modern, reliable railway, while easing the burden on taxpayers and protecting passengers from the highest retail price inflation in years. These decisions have meant the Government will have helped keep ticket prices more than 9 per cent lower than what passengers would have paid if rises matched the RPI benchmark in the last 2 years. Further, the Government has delayed the fare increases in 2024 by three months to March, giving passengers more time to purchase cheaper flexible and season tickets at the existing rate.
Over the long-term, it is important to note that rail fare revenue is crucial to funding day-to-day railway operations and wider rail investment, which benefits passengers across the country. In recent years, rail operators have been investing in more trains, better stations and faster journeys.
In September 2022, the Government announced that it would provide up to £60 million from the beginning of January until the end of March 2023 to enable bus operators cap single adult fares at £2 per journey. To continue to help people with cost of living pressures and save on everyday travel costs, the Government is providing up to £200 million to continue capping single bus fares at £2 outside London. This was due to end in October 2023, however, the Prime Minister has announced that it will be extended until the end of 2024 to ensure costs are kept down for families.
Over 140 bus operators outside of London now charge no more than £2 for their single tickets across over 5,000 routes. Millions of passengers have already taken advantage of cheaper bus fares since January.
The scheme, which forms part of the Government's wider Help for Households initiative, was designed to help passengers with travel costs for work, education, shopping and medical treatments over the winter months while they are facing pressures from the rising cost of living. This significant investment resulted in millions of people across England saving on travel costs. Department for Transport statistics in September 2023 showed the overall price of bus fares in England, outside London, dropped by 7.4 per cent between June 2022 and June 2023, mainly due to the Get Around for £2 scheme. This was particularly in rural areas, with the average fare dropping by 10.8 per cent in rural and non-metropolitan parts of England.
Thank you again for taking the time to contact me.
Best wishes,
Angela Richardson MP
Member of Parliament for Guildford, Cranleigh and our villages