In England, regulated train fares are set to increase by 4.6% next year, while the price of most rail-cards will increase by £5, according to an announcement by the government.
The increases were not highlighted by the chancellor in her Budget speech to the House of Commons earlier on Wednesday, but it was rather noted in the Treasury’s budget document.
The changes will be instituted on 2nd March, 2025.
Elsewhere in the Budget, Chancellor Rachel Reeves set out tax increases worth £40bn in an attempt to repair public finances and promised billions of extra spending on schools and the NHS.
About 45% of rail fares are regulated by the government in England, Wales and Scotland – but this increase only concerns travel in England.
The regulated fares include season tickets covering most commuter routes, some off-peak return tickets on long-distance journeys and flexible tickets for travel in and around major cities.
Train operators have the ultimatum to set prices for unregulated fares, but they usually increase by similar amounts.
The Treasury also said that the 4.6% increase to regulated rail fares in 2025 was one percentage point above July’s Retail Prices Index (RPI) measure of inflation.
It also added that the £5 rise in the cost of rail cards – which gives discounts for different groups of people – would be subjected to an industry review.
Holders of the Disabled Persons Railcard will be exempted from the price increase according to the government.
What They’re Saying
Reacting to this announcement, the Campaign for Better Transport said increasing rail fares above inflation and increasing the cost of rail cards was a “kick in the teeth” for individuals who rely on public transport, especially those on low incomes.
The group had said:
“Doing this at the same time as keeping fuel duty frozen sends entirely the wrong message.
“To tackle air pollution, congestion and climate change, we need to make public transport the attractive, affordable choice.”
Another group, Rail Partners, which represents private rail organisations, had argued that the government’s priority should be on growing passenger numbers, not making current passengers pay more.
The other measures announced in Wednesday’s budget include: increases to the basic rates of capital gains tax, raising the proportion of National Insurance contributions businesses have to pay, and upping the cap on single bus fares from £2 to £3.
Reeves had also increased the minimum wage, maintained a 5p cut to fuel duty for another year and made several pledges to help finance rail infrastructure.
