The Association of Train Operating Companies (ATOC) announced on 1 December that rail fares for travel from Monday 2 January 2007, will change on average as follows:

* The majority of train operating companies are raising their regulated fares (e.g. season tickets and saver tickets) by 4.3% (RPI + 1%).  On some train operators, fares will rise by less than this.  On Southeastern, regulated fares will rise on average by RPI+3% as provided for in their new franchise agreement.

* Unregulated fares (e.g. cheap day returns, long distance open and some advance purchase fares) will rise by varying amounts, according to train operator, with average fare rises of 4.7%.

Regulated fares are determined by the fares regime overseen by the Department for Transport.  This allows for a rise of Retail Price Index (RPI) plus one percent (except Southeastern, RPI+3%) based on the July RPI figure which in 2006 was 3.3%.  The latest RPI figure (October 2006) is 3.7%.  Regulated fares account for around 40% of tickets sold.  Unregulated fares account for 60% of tickets sold.

The revenue from fares helps fund improvements to the railway. Passengers have already benefited from new trains, more station refurbishments and better customer information systems as well as the highest punctuality levels for seven years, with punctuality of 89.5% in the six months to 30 September 2006.   The Government also receives premium payments from some operators such as First Capital Connect, Gatwick Express, GNER and Midland Mainline.  Other train operators are working to tough franchise targets for reducing subsidies from government.

George Muir, Director General of ATOC, said: “While no-one likes to pay more for their travel, we need the revenue to pay for the ongoing improvements to the railways that passengers expect – and overall satisfaction levels are now at an all time high of 80%.  Train operators will continue to raise their game, delivering further improvements to the railway and enhancing the travel experience of passengers. Rail travel is proving very popular with more passengers travelling this year.  The challenge now is to get extra capacity onto the railway and route plans are underway to this end.”