Rail firm freezes 43% of its fares for 2014 including more than half of its journeys from London

  • Government-run East Coast said freeze was 'commercial decision'
  • 64% of booked in advance journey fares will also be frozen
  • Government took over running of line between London and North East and Edinburgh after National Express decided it cost too much to run

By Ray Massey

PUBLISHED: 17:35 EST, 16 December 2013 | UPDATED: 19:06 EST, 16 December 2013


A rail firm has become the first to announce a freeze on 43 per cent of its fares for 2014 - including more than half of journeys to and from London.

But Government-run East Coast, which runs to the North East and Edinburgh, said regulated fares, which include season tickets, will rise by 3.1 per cent.

A spokesman said: ‘Fares on 43 per cent of all journeys will be frozen next month, with fares on tickets booked in advance frozen for 64 per cent of all journeys.’

Government-run East Coast, which runs between London and North East and Edinburgh, has become the first to announce a freeze on 43 per cent of its fares for 20134

Government-run East Coast, which runs between London and North East and Edinburgh, has become the first to announce a freeze on 43 per cent of its fares for 20134

This is in sharp contrast to the oft-quoted ‘real terms freeze’ in which fares go up only by the rate of inflation - which still means ticket prices rise.

The company said there would be some increase below or up to the rate of inflation on 51 per cent of fares. And 6 per cent of tickets would see an above inflation rise, it said.

 

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The line was taken over by the Department for Transport in 2009 after franchise holder National Express decided it cost too much to run.

East Coast managing director Karen Boswell said: ‘We’re freezing fares to encourage more people to travel with us. This will help us to continue to grow our business, and to give back even more to the taxpayer.

‘This is a straightforward commercial decision which is very good news for our customers and businesses across our route. It will also help East Coast to sustain our strong advantage in a highly-competitive travel market.

'When you take into account the rate of inflation, [the] announcement represents a genuine real terms cut in our overall fares.

The company said it was a 'commercial decision' and hoped it would attract more passengers (file picture)

The company said it was a 'commercial decision' and hoped it would attract more passengers (file picture)

'We believe this will attract more people to our trains, and help to maximise revenue. It will also help businesses and hard-working people by holding down the cost of travel for many.‘

East Coast operates services from London up the east side of England to Scotland, with about 60 per cent of services starting or finishing at London’s King’s Cross station.

Overall average rise for all East Coast fares from January 2 will be 1.21 per cent.

Unregulated fares - which include off-peak fares and advanced-purchased tickets for leisure travellers - will go up by an average of 0.83 per cent.

Regulated fares, including season tickets, will rise by 3.1 per cent next year after an announcement by George Osborne

Regulated fares, including season tickets, will rise by 3.1 per cent next year after an announcement by George Osborne

But regulated fares, which include season tickets, are rising by the recently-agreed 3.1 per cent average which is in line with the July 2013 RPI inflation rate on which the January 2014 national rises are based.

This follows the announcement in Chancellor George Osborne’s recent Autumn statement that January 2014’s rail fare rise for regulated fares - which include season tickets - would be capped and limited to the retail or RPI rate of inflation rather than ‘RPI plus 1per cent’.

The rises will now be based solely on the inflation-rate rate in July 2013, which means that the average rise in January 2014 will be 3.1 per cent rather than the expected 4.1 per cent.

However, train operators still have flexibility to increase fares by a further 2 percentage points to 5.1 per cent, - provided other fares fall to compensate and keep the overall average at 3.1 per cent.

Mr Osborne said his decision would benefit more than 250,000 annual season ticket holders who will, on average in 2014, save £25.

Passenger Focus executive Mike Hewitson said: ‘Hard-pressed passengers will welcome East Coast’s decision to freeze nearly half of all its fares, including more than half of those to or from London.’

And TSSA transport union leader Manuel Cortes said other rail companies who have made ‘massive profits down the years from ripping off passengers’ should follow suit.

He added: ‘We would like to see all fares frozen because they have more than doubled since privatisation 20 years ago.’

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They wouldn't do that if their costs meant this would not be commercially viable. That suggests that costs are such that the train companies can get away without such high fare increases this year. Other firms, here is your chance to prove that you're NOT profiteers.

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RECENTLY WENT ON EAST COAST, VERY IMPRESSIVE BUT THEN ITS PUBLIC SERVICE NOT PRIVATE PROFIT. ALL FRANCHISES SHOULD BE TAKEN BACK INTO PUBLIC OWNERSHIP AND THEN WE CAN HAVE A LONG HARD LOOK AT NETWORK RAIL

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If they win the next election, winter fuel allowance will be stopped, taxes will rise, more pensioners in poverty, massive tax cuts at the top, somebody has to pay for it, a two nation government, with a two nation pm,

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I agree about the costs but East Coast is the best company to travel on the rail with.

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Arriva Wales trains seriously need to freeze or reduce their fares. I hate visiting family in Wales. Based on journey times, a 50 min journey on an Arriva Wales train cost £25. Whilst a 1hr30 journey on 2 other train services cost just £17 and £19. The latter 2 trains are also of a higher quality with touch screen entertainment, radio station services and somewhere to plug a phone charger into. Whereas Arriva Wales trains are old, dirty and all they have is a fold down table on the back of each seat

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the privatisation of the fleets was a joke, it was sold at knockdown price, the TOCS also were, sold to the bus companies and management buyouts who eventually made a mint on selling for a better dollar for their money, cannot blame them..Its not a real private railway as the government chucks more money in to it in real terms than ever was in British rail days, in real terms british rails sector managment actually cost the government less to run, the investment was there, The Direct operated railways - run by government do make the government cash, and the government needs to listen the public and its people who run the DOR jobs, as always europe says no and we cow tow to the german literalcrats etc etc...

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Everything gearing up for the Election then A few carrots and they think the people will forget what they have done to this Country.

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Still too expensive. But we the consumer do not have a PLATFORM to complain. Nobody is going to thank you for your continued policy of daylight robbery. These fares have gone off the RAILS. The fact that you are going to increase fares on over 30% of trains is obscene and SIGNALS your intention to carry on into 2014. We need ot get fares back on TRACK with reductions, and at this JUNCTION any increase is wrong.

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take all rail back into government ownership..end of

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Only because they are at a point where they are making so much profit. I dont understand how a company making millions and millions in profit can justify raising prices be it fuel, gas, electricity or water.

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