The Chancellor says her announcement – the first of its kind in three decades – will save many commuters hundreds of pounds a year.
The Chancellor will hope this will delight cash-strapped commuters (Image: WalesOnline/Rob Browne)
Rachel Reeves will freeze rail fares in this week’s Budget as she works to win back voters in a nation battered by the cost of living crisis. The first rail fare freeze in three decades is billed as a “historic intervention” to save commuters cash, grow the economy and combat inflation.
Passengers will not pay “a penny more” on season tickets, peak returns for commuters or off-peak returns between major cities under the plan. People who travel to work on the more expensive routes are expected to save over £300. Transport costs are understood to make up 12% of household spending.
This comes alongside plans to bring “rail tickets into the 21st century” with more travellers able to tap in and tap out – plus investment in “super fast” Wifi.
Ms Reeves said: “[At] the Budget I’ll set out the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living. That’s why we’re choosing to freeze rail fares for the first time in 30 years, which will ease the pressure on household finances and make travelling to work, school or to visit friends and family that bit easier.”
According to the Treasury, a typical commuter travelling three days a week using flexi-season tickets will save £315 per year going from Milton Keynes to London; £173 going from Woking to London; and £57 per year going from Bradford to Leeds.
A new publicly owned company, Great British Railways (GBR), will be created by the Railways Bill. Set up to run and manage the tracks and trains, the Government claims this will end “years of fragmentation, driving up standards for passengers, and making journey easier and better value for money”.
Ben Plowden, chief executive of the Campaign for Better Transport, said: “We know that cost is the number one concern for people wanting to travel by train, so it is very welcome that fares will be frozen next year as we have been calling for. As well as helping households with the cost of living, this will enable more people to choose rail, reducing traffic on our roads, benefitting the economy, helping the environment, and connecting communities across the country.
“One of the Government’s six objectives for the reformed railways is that they should be affordable. As plans for Great British Railways gather pace, this is a positive sign that affordability for passengers is being given the high priority it deserves.”
Alex Robertson, chief executive of the independent watchdog Transport Focus, said: “Freezing fares will be extremely welcome news for rail passengers who consistently tell us value for money is their highest priority, alongside trains running on time. It should also make it more attractive for people to use the train more often or for the first time.
“We’ve always recognised there is a difficult balance to strike in how the railway is funded between fares and public subsidy. That makes today’s announcement particularly welcome.”
Transport Secretary Heidi Alexander said: “We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money. Commuters on more expensive routes will save more than £300 per year, meaning they keep more of their hard-earned cash.”
Shadow Transport Secretary and former Tory chairman Richard Holden (Image: Getty)
Shadow Transport Secretary Richard Holden said: “After pushing up inflation and losing control of public spending, it is welcome that Labour have finally, under sustained Conservative pressure, frozen rail fares. However, the Government, once again, is late to the platform.
“In Government, the Conservatives kept fares on the right track with below-inflation rises and consistently called for no further hikes to protect hard-working commuters.
“Only the Conservatives have a plan to control public spending, get a grip on inflation and grow the economy.”
