Rail fares - reactions from Taxpayers' Alliance, Labour and London Mayor

Wednesday, 2 January 2019 00:01

Renationalisation is not the answer, says Taxpayers' Alliance (under embargo) With rail fares due to increase yet again today, and the debate around public ownership raging, it is clear that renationalisation is not the answer. Despite claims made about our privatised rail network: Two thirds of delays are caused by Network Rail, which is nationalised. Every year of privatisation, bar two, have shown an increase in the number of passenger...Request free trial

Renationalisation is not the answer, says Taxpayers' Alliance (under embargo)

With rail fares due to increase yet again today, and the debate around public ownership raging, it is clear that renationalisation is not the answer.

Despite claims made about our privatised rail network:

Two thirds of delays are caused by Network Rail, which is nationalised.
Every year of privatisation, bar two, have shown an increase in the number of passenger journeys.
Passenger satisfaction is high and stands at 81 per cent, up from 74 per cent 15 years ago.
As a proportion of passenger fare receipts, dividends have averaged less than 3 per cent in recent years.
In addition, the government has received a net contribution from train operating companies for eight years running. This has totalled £3.4 billion in real terms.
More choice on routes is proven to be good for consumers, brings down costs and delivers lowers prices. Competitive routes, such as on the East Coast line where Grand Central operates, has delivered this.

Significantly lower fares could only be delivered by spending yet more taxpayer cash which would disproportionately benefit high earners: the top fifth of households travel four times as far by rail than those in the bottom 20 per cent. It would be deeply unfair for poorer taxpayers to further subsidise wealthier commuters' rail journeys.

Commenting on the report, John O'Connell, Chief Executive at the TaxPayers' Alliance, said:

"We hear from socialists that renationalisation is the silver bullet to improve the railways, but the evidence clearly says not. Network Rail, the state-run part of the railways, is the chief culprit for causing commuters misery.

“As well as introducing more competition, efforts should be spent on ending the disruption of trade unions, as well as scrapping the true rail scandal in this country, which is HS2."

Founded in 2004 by Matthew Elliott and Andrew Allum, and now with 80,000 supporters, the TaxPayers’ Alliance (TPA) fights to reform taxes, reduce spending and protect taxpayers. Find out more about the TaxPayers' Alliance at www.taxpayersalliance.com.
TaxPayers' Alliance's advisory council.
The Office of Rail and Road’s announcement last month that new open access operators would be allowed to bid for slots on existing franchises is good news for passengers and should be welcomed. Two of the existing open access operators, Grand Central and Hull Trains, have been shown to deliver benefits of lowers fares, improvement to service levels and growth in the rail market. A third open access company, Heathrow Express, consistently shows some of the highest passenger satisfaction levels in the country.
Econometric analysis has shown that, under a number of different scenarios, greater use of open access can reduce the operation costs of services on East and West coast services.
Net contribution to government from train operating companies is derived from the Office for Rail and Road (Government support to the rail industry – Table 1.6). Central government grants prior to 2017-18 adjusted using the October 2018 GDP Deflators.

Overcrowding on train services hits worst ever levels and is set to get even worse

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Labour Party Press Office via mta8.iomartmail.com

10:00 (3 hours ago)

***EMBARGOED UNTIL 0001Hrs, Thursday 3 January 2018***

Overcrowding on train services hits worst ever levels and is set to get even worse

Labour is today releasing new analysis of overcrowded rail services, which reveals that:

- Overcrowding on our railways is at one of the highest levels since records began.

- The top 10 most overcrowded peak train routes are on average 187 per cent in excess of capacity; an increase of over 25 per cent since 2011.

- The most overcrowded route in 2016 was the 07:16 Southern service from East Grinstead to London Bridge. The service had nearly double (191 per cent) the number of passengers on the train as the service is designed to be able to carry.

- The most overcrowded route last year was the 04.22 from Glasgow Central to Manchester Airport which was 211 per cent in excess of capacity.

- The top 10 most overcrowded peak train routes will be an average over 207 per cent in excess of capacity by the end of the parliament.

- 2018 saw the cancelled or significantly late services at their highest level in 17 years.

Andy McDonald MP, Labour’s Shadow Transport Secretary, said:

“Under the Tories fares have risen three times faster than average wages and severe disruption has blighted the network meaning services are often delayed or cancelled.

“It’s outrageous that passengers will be hit with yet another above inflation fares rise following such a miserable year on the railway. Making passengers pay more to travel on increasingly overcrowded trains is simply not sustainable.

“The Government’s blind obsession with privatisation is putting the future of the railway at risk. Labour will do what’s best for passengers and taxpayers by taking the railway back into public ownership in order to improve services and cap fares.”

Ends

Notes to editors

1. The table below lists the most overcrowded route each year since 2011 and the amount in excess of capacity. The most overcrowded route last year was the 04.22 from Glasgow Central to Manchester Airport which was 211 per cent in excess of capacity.

year	Train Operating Company	Departure time	Origin station	Destination station	Arrival time	Standard class passenger capacity	Standard class passenger load	Passengers in excess of capacity	Standard class load factor
2011	First Great Western	07.44	Henley-on-Thames	London Paddington	08.29	225	404	179	180%
2012	Heathrow Connect	08.27	Heathrow T1,2,3	London Paddington	08.54	476	786	310	165%
2013	London Midland	16:46	London Euston	Crewe	19:24	206	435	229	211%
2014	Trans Pennine Express	04.22	Glasgow Central	Manchester Airport	08.47	191	355	164	186%
2015	Govia Thameslink Railway	08:20	Brighton	Bedford	09:25	420	960	540	229%
2016	Southern	07:16	East Grinstead	London Bridge	08:20	640	1366	726	213%
2017	TransPennine Express	04.22	Glasgow Central	Manchester Airport	08.44	191	403	212	211%

Department for Transport, Top 10 overcrowded train services, 24 July 2018,https://www.gov.uk/government/publications/top-10-overcrowded-train-services-england-and-wales-2017?utm_source=e571d64d-0830-4245-b33e-771f5a4d9df0&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

2. The table below lists the most overcrowded peak train services by the number of passengers above capacity. Once again, the 07:16 service from East Grinstead is the most in excess of capacity – more so than any route since the Department for transport began recording these statistics in 2011.

Year	Train Operating Company	Departure time	Origin station	Destination station	Arrival time	Standard class passenger capacity	Standard class passenger load	Passengers in excess of capacity	Standard class load factor
2011	South West Trains	07.32	Woking	London Waterloo	08.19	738	1209	471	164%
2012	Southern	07.32	Tattenham Corner	London Bridge	08.28	860	1324	464	154%
2013	South West Trains	07:32	Woking	London Waterloo	08:19	738	1,278	540	173%
2014	South West Trains	07.32	Woking	London Waterloo	08.19	738	1180	442	160%
2015	Govia Thameslink Railway	08:20	Brighton	Bedford	09:25	420	960	540	229%
2016	Southern	07:16	East Grinstead	London Bridge	08:20	640	1366	726	213%
2017	Southern	07:16	East Grinstead	London Bridge	08:20	640	1220	580	191%

3. The table below shows the average per cent that the standard class were in excess of capacity on the 10 most overcrowded peak train services in major cities in England and Wales for each year from 2011 – 2017. Last year was the second highest on record on average.

Rank of the most overcrowded service that year	2011	2012	2013	2014	2015	2016	2017
1	180	184	211	186	229	213	211
2	164	173	173	185	215	211	202
3	162	166	173	176	196	194	199
4	160	159	169	171	176	193	191
5	158	158	166	164	171	187	187
6	157	156	164	164	166	184	178
7	155	154	157	161	166	184	176
8	154	152	156	161	166	180	176
9	152	150	155	160	163	180	175
10	152

...

EMBARGOED FOR 00:01 WEDNESDAY 02 JANUARY 2019

Third year of Mayor’s TfL fares freeze begins

Pay as you go fares on Tube, DLR and bus services across London still the same as they were in 2016, while National Rail fares have increased by around 8.8 per cent in the last three years.
Fares freeze has helped millions travel more affordably, while cushioning London from the drop off in passenger numbers seen elsewhere around the country
‘Monday to Sunday’ (weekly) capping on Oyster to launch across Tube and rail network by Spring 2019 following last month’s successful introduction for bus and tram users.

Fares on TfL services have been frozen again for a third year as part of the Mayor Sadiq Khan’s continuing commitment to make them affordable for all Londoners – at a time where National Rail fares have increased by 3.1 per cent.

The Mayor’s four-year freeze of TfL fares continues to help Londoners and visitors by ensuring travelling by bus or tram in London costs not a penny more than it did in 2016. Pay-as-you-go journeys on the Tube, DLR, Emirates Air Line and rail services where TfL fares apply are all also frozen, as well as the cost of hiring a Santander Cycles bike.

Using pay as you go with a contactless card or Oyster, off-peak fares including Zone 1 start at £2.40 and off-peak adult Tube, DLR and London Overground fares within Zones 2-6 are just £1.50. In addition, the Mayor’s Hopper fare applies all day and night, allowing Londoners to take unlimited bus and tram journeys across the capital within an hour for just £1.50, with the total cost capped at £4.50 for the whole day.

By 2020, Sadiq’s TfL fares freeze will have saved the average London household around £200. This is in addition to the Mayor’s ‘Hopper’ bus fare that has now saved money on more than 250 million bus and tram journeys since it launched in September 2016. TfL fares increased by more than 42 per cent in the eight years before Sadiq became Mayor.

As with previous years, Travelcards and associated caps, which are set in agreement with the train operating companies under fares regulations set by the government, will increase, by 3.1 per cent. This increase means that the overall increase in National Rail fares since May 2016 is now around 8.8 per cent and could exceed 10 per cent by January 2020.

Evidence suggests that the benefits of the Mayor’s freeze of TfL fares has helped cushion London from the severity of impacts seen elsewhere around the country. 2018 was also the most successful year ever for Santander Cycles, with a record-breaking 10.5 million journeys made across the year and more than a million hires taking place in five of the 12 months in the year.

Despite a recent upturn in Tube ridership, with 7 December seeing the busiest day in the Tube’s 155-year history with 5.031 million journeys, passenger numbers overall have been slightly down, particularly on buses. However, a reduction in bus passengers is being seen more generally across the UK, with year ending June 2018 figures from the DfT showing a 1.5 per cent decrease across England.

All TfL travel concessions are also protected, ensuring that children, those over 60, veterans, apprentices and those on unemployment benefits continue to benefit from free or discounted travel.

Mayor of London, Sadiq Khan, said:

“I’m delighted to be freezing TfL fares for the third year in succession. Our ‘Hopper’ bus fare and TfL fares freeze has made travel more affordable for millions of people across London, and helped keep public transport an easy and affordable option for everyone.

“Our TfL fares freeze is in contrast to the private rail companies hiking up fares again, despite the litany of cancelations, delays and overcrowding on services like Southern and South Western Railway. Given the continuing woeful services on suburban rail routes, the increase in rail fares of 8.8 per cent over the last three years is simply a disgrace.”

Shashi Verma, Chief Technology Officer at Transport for London said: “We are committed to ensuring that customers pay the lowest correct fare by making our fares system as simple and easy to use as possible. Throughout 2019, we will be introducing further enhancements to our ticketing system, including completing the introduction ofweekly capping on Oyster to allow all customers to benefit from more affordable and convenient fares.”

Darren Shirley, Chief Executive of Campaign for Better Transport, said: “We welcome the Mayor’s fares freeze for 2019. Affordable public transport is crucial to keeping London moving and helping improve the capital’s air quality.”

During 2019, TfL will be delivering further improvements for customers to help make travel more accessible and convenient for those traveling in and around London. As confirmed by the Department for Transport in November, pay as you go will shortly be expanded to cover rail services to Epsom and Hertford North, with a wider consultation on extending pay as you go across the rail network around London expected to take place during 2019.

Following the successful introduction of ‘Monday to Sunday’ (weekly) capping on Oyster for bus and tram passengers in December, TfL is also now working with the Train Operating Companiesto extend this to cover Tube and rail passengers by Spring 2019. The cap, which is already available for contactless users, will ensure that Oyster customers are never charged more than the cost of an equivalent 7-Day Travelcard.

The fares freeze is being fully paid for through TfL’s efficiencies programme, which has been outlined in its December 2016 Business Plan.TfL’s efficiencies programme has already helped save more than £500m a year.

Ends

Notes to Editors:

The Mayoral Decision for the 2019 fares package will be available here –https://www.london.gov.uk/about-us/mayoral-decisions

The Train Operating Companies have decided to raise their fares by 3.1 per cent. This increase is close to the maximum permitted by the guidance from the Secretary of State for Transport which states that no regulated TOC fare should rise by more than the percentage increase in the RPI.

The Mayor only has the power to set fares on TfL services. Travelcards, and the associated daily and weekly caps, are set in agreement with the private train operating companies (TOCs) under fares regulations set by the Government, which permit regulated fares to increase in line with RPI inflation if no agreement is made.