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Rail fares increase (or not?) January 2021

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Jamesrob637

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We are now unbelievably in the middle of July, and I believe that any increase in fares is announced next month.

Are we going to witness an increase this summer, or will fares be frozen due to COVID-19?
 
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JonathanH

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A lot of the costs of running the railway go up on an annual basis, eg staff costs, and some are the subject of long term agreements so it isn't clear that holding off the fare increase is that easy.

Note that inflation is at relatively low levels currently and probably won't see a spike next month - there is the VAT cut on certain hospitality costs, fuel is only creeping up slowly, the additional costs of making Covid-secure premises and operations isn't yet feeding through.
 

MotCO

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Oyster fares will be going up as part of the emergency funding conditions imposed by the Government on TfL.
 

LNW-GW Joint

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Inflation is currently 0.6% and likely to fall further next month which is the trigger point for the January fares increase.
So if there is an increase it will be tiny, but the government might scrap it completely.
It also means salaries aren't going to increase much either.
Scotland and Wales have different rules.
 

JonathanH

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Is it really likely that people in the industry will be receiving a pay rise next year?
Yes, if they have contractual pay agreements already agreed through collective bargaining (assuming RPI is greater than 0%). It is not uncommon for railway employees to have a pay agreement defined over a number of years.

It kind of depends which comes first - if July RPI is announced and train fares follow in January (which it has been pointed out will apply at least for TfL) then railway employees will be a bit put out if they are told they aren't getting a pay increase - maybe if staff are told now they aren't getting an increase, there will be less need for train fares to increase.

Railway pay increases aren't all on the same date - have there already been instances of pay awards not being made since March?
 
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CyrusWuff

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Is it really likely that people in the industry will be receiving a pay rise next year?
Unless a pay deal is already in place, TOC staff will not be getting a pay rise whilst the Emergency Measures Agreements remain in force, as the DfT won't sign off on them.
 

Hadders

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How much will TfL fares increase by?
Is it not possible National Rail fares will simply match them?

I think the Government deal mandated something like 1% above inflation for TfL. I strongly suspect they'll be peaks and troughs though. I strongly suspect single zone 1 fares to get a large increase to discourage travel between zone 1 stations, and encourage people to walk or cycle.
 

ForTheLoveOf

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Inflation is currently 0.6% and likely to fall further next month which is the trigger point for the January fares increase.
So if there is an increase it will be tiny, but the government might scrap it completely.
It also means salaries aren't going to increase much either.
Scotland and Wales have different rules.
0.6% is the current level of CPI. However, it's RPI (which runs at 1.1% currently) that has been used as a reference point for fare increases for many years now. It conveniently just so happens that RPI is almost always higher.

The percentages used reflect price changes over the preceding 12 months so unless the pandemic has dramatically reduced prices since last year (in most cases things have simply become unavailable, or gone up in fact) then I don't see that RPI will necessarily be lower next month.

I would be highly surprised if fares didn't rise. Ministers could pass it off with the old chestnut that it means passengers are paying for more of the cost of running the railway - although it looks like fares will be small change in comparison to costs for the foreseeable future. Or they could even say that are raising fares to prevent overcrowding and thus social distancing being impossible.

There are any number of things they can use to explain it away, and with probably the lowest percentage of the population now using the railways since the railways began, it will quickly be swept under the carpet for another Covid "breaking news" item.

The real reason for any rise will probably be because a freeze, whilst perhaps viable for one year, means that future revenue is effectively indefinitely cut by whatever percentage the fares fail to rise rise by. This takes above inflation rises to even out - as are now scheduled for TfL.

As for staff salary rises, don't underestimate the thick headedness of some of the unions there. They will no doubt demand concessions, likely including pay rises, because of the "heroic effort" they put into serving the nation during the crisis or somesuch drivel. They'll no doubt be prepared to strike if they don't get such a rise. The fact that salaries for most staff are already well in excess of those in other countries and railway systems, let alone similarly qualified jobs in the UK, is irrelevant to them.
 
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