Biggest government intervention ever to reduce rail fares | Daily News Byte

The government has acted with the biggest intervention in its history to ensure that rail fare increases are capped at 5.9% for 2023, down from 6.4%. RPI figure on which they are historically based.

The fares will officially increase on 5 March 2023 and like last year, the government is freezing them for the months of January and February, giving passengers more time to buy cheap flexible and season tickets at the current rates.

Due to the unprecedented level of inflation, the government has, for this year only, aligned growth to July 2022 average income growth instead. RPIRather than halving the increases facing passengers, it is easier on family finances to ensure that taxpayers who have subsidized running the railways to the tune of £31 billion since the pandemic are not overburdened.

Transport Secretary Mark Harper said:

This is the biggest ever government intervention in rail fares. I am capping growth well below inflation to help reduce the impact on passengers.

It has been a difficult year and the effects of inflation are being felt across the UK economy. We don’t want to add to the problem.

This is a fair balance between the passengers who use our trains and the taxpayers who help pay for them.

The rail industry is facing serious financial difficulties, which is why trade unions have to agree to save costs. Taxpayers across the country contributed £31 billion to the railways during the pandemic, ensuring stability for staff and avoiding job losses. Next year’s rail fares strike the right balance between the needs of rail passengers and taxpayers as we seek long-term sustainable financial position in the wake of the pandemic.

In the years since privatisation, under both Conservative and Labor governments, regulated rail fares have risen closely in line with inflation, never above or below 1%. RPI. The government, however, recognizes the wider economic challenges facing commuters now and has taken steps to link this year’s rate to average earnings growth in July 2022. RPIand prevented an increase of 12.3%.