Could a low income railcard work ?

[yorksrob]

One of the lobbying groups did a study perhaps 15 years ago into a National Railcard. Their conclusion was that a railcard available to anyone could be revenue-positive, and the modelling suggested (IIRC) that the most favourable for railway finances was a £50 up-front cost for one year, giving one-third discount on Off-Peak travel.

Infrequent travellers and commuters would still pay full fare, but the expected stimulus to demand for off-peak travel was projected to be worth more than the loss in revenue.

As far as a low-income railcard goes... one might suggest that a fairer approach would be to set fares at a sensible level, and use the tax and benefit systems for redistributive purposes. What we currently have is an agglomeration of bits and pieces that don't work coherently, leading to the various 'income traps' mentioned above.

Ofcourse £50 15 years ago is something like £80 today, and obviously fares have increased faster than inflation.

So to achieve the same impact you are probably pushing £90.
Very different to the current Railcard system

£80 - £90 could still work for a National railcard. Of course this is more aimed at being commercially beneficial, rather than removing barriers (you could of course make the card cheaper for the groups with the biggest barriers)

I feel that they'd have to choose between this, or my income related railcard, rather than have both. The industry would have to get over its squeamishness about some wealthy people getting a good deal, however on the plus side, there would be fewer eligibility checks and less data handling.

Either would be better than the status quo. Actually, I remember seeing the said report, however the privatised railway, for all its supposed dynamism, never managed to do anything with it.

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By removing railcard it would make rail ticketing a little less confusing than it is now.

Realistically passengers prioritise affordability over simplicity - however they don't want a system designed to catch them out.

 

[Indigo Soup]

Ofcourse £50 15 years ago is something like £80 today, and obviously fares have increased faster than inflation.

So to achieve the same impact you are probably pushing £90.
Very different to the current Railcard system

In fact, the study was done for Rail Future back in 2003, and recommended £30 for a 50% discount. The estimate was that 2.7 million cards would be issued, leading to a 25% increase in off-peak passenger miles, and a reduction in subsidy of 13%.

Railfuture | National Rail Card

Railfuture

www.railfuture.org.uk

At the time, a Young Person's Railcard was £18, so it's reasonable to suggest the equivalent card today would be priced at about £50. So far as I can tell, other railcards would have remained available, although I'm sure the higher discount would make the National Railcard overwhelmingly popular.

== Doublepost prevention - post automatically merged: 19 Nov 2024 ==

£80 - £90 could still work for a National railcard. Of course this is more aimed at being commercially beneficial, rather than removing barriers (you could of course make the card cheaper for the groups with the biggest barriers)

There are all sorts of things one can do. I was mostly driving at the point that a railcard-type scheme doesn't have to be to the detriment of railway finances.

 

[yorksrob]

In fact, the study was done for Rail Future back in 2003, and recommended £30 for a 50% discount. The estimate was that 2.7 million cards would be issued, leading to a 25% increase in off-peak passenger miles, and a reduction in subsidy of 13%.

Ah yes, the sort of thing that the Swiss and the Germans seem to have managed for decades. Of course, the "it couldn't possibly work here" brigade will be foaming at the mouth.

 

[BrianW]

In fact, the study was done for Rail Future back in 2003, and recommended £30 for a 50% discount. The estimate was that 2.7 million cards would be issued, leading to a 25% increase in off-peak passenger miles, and a reduction in subsidy of 13%.

Railfuture | National Rail Card

Railfuture

www.railfuture.org.uk

At the time, a Young Person's Railcard was £18, so it's reasonable to suggest the equivalent card today would be priced at about £50. So far as I can tell, other railcards would have remained available, although I'm sure the higher discount would make the National Railcard overwhelmingly popular.

== Doublepost prevention - post automatically merged: 19 Nov 2024 ==


There are all sorts of things one can do. I was mostly driving at the point that a railcard-type scheme doesn't have to be to the detriment of railway finances.

Of course the charge can be made, and with some justification, that a study undertaken with a preferred outcome is likely to suffer some 'confirmation bias', but hopefully a 'sensitively analysis' and of course data collected in today's context, might reveal, say, a 5-10% increase in 'off-peak' ridership and a reduction in subsidy of, say, 1 or 2% (They're just random figures okay- they may be more OR less). It seems to me a good time to commission such a study, with results and recommendations ready for the NEXT government to think about getting round eventually to having a consultation on ... in the fullness of time ...