Proposed shake-up of rail fares system

Radical proposals have been published today (18 February) by the rail industry to overhaul the country’s fares system.

Britain’s rail companies are publishing the ‘Easier Fares for All’ proposals to explain how updates to outdated regulation would enable the transparent, simpler to understand fares system people want. The proposals meet a commitment made by the rail industry when launching its consultation to bring forward proposals that are revenue neutral, meaning no change in average fares or taxpayer support. They are built with a simple proposition at their core: that customers only pay for what they need and are always charged the best value fare.

This would be enabled by the fares system moving to a ‘single-leg’ structure, as currently operates within London, so that customers are able to choose the most appropriate ticket for each leg of their journey in a way they are unable to today.

If accepted, the proposals would aid the roll out of ‘tap-in, tap-out’ pay as you go fares in cities across the country. This means thousands of commuters who travel into Greater Manchester could benefit from the kind of price capping system currently available for journeys within London, which operates under different regulation to the rest of the country.

A price cap would see fares keeping pace with how people buy tickets and travel today. Commuters who currently buy season tickets could save money when they travel fewer than five days a week or are able to travel off peak, supporting changes in working patterns, with part time working and self-employment having increased by over a third in the last two decades. 93% of consultation respondents in Manchester wanted consideration (definitely or maybe) of price capping.

Reforming the fares system could also reduce overcrowding on the busiest long-distance services. 86% of respondents in Manchester wanted consideration of fares that encouraged empty seats to be filled. Updating regulations around peak and off-peak intercity travel would mean ticket prices could be set more flexibly, spreading demand on long distance journeys for a better customer experience for leisure travellers. This would be supported by a wider range of on the day fares.

A reformed fares system would also help make the most of technology like online accounts, smartcards and smartphones to make ticket buying simpler, so that customers are shown fares which match their needs while screening out irrelevant choices that cause confusion.

If the proposals are developed and adopted, they could enable the rail industry to offer a ‘best fare guarantee’, so that customers could be confident that they are always paying the lowest fare available where and when they buy it, which meets their needs.

The proposals have been informed by the biggest ever public consultation into what people want from rail fares with nearly 20,000 people across Britain, including almost 300 in Greater Manchester, taking part.

The consultation, delivered in partnership with independent passenger watchdog Transport Focus, found that 84% of respondents in Greater Manchester want the current system changed, with people united in wanting a fairer, more transparent and easier to use experience.

The reforms proposed would allow:

• local political leaders to have more control over their transport systems, where relevant powers are devolved, enabling them to co-ordinate train fares alongside other local transport. This is difficult now even where those powers are already devolved because rail-only fares are set under different national rules to local travel schemes.
• local reform where control of pricing has been devolved, helping with the rollout of pay-as-you-go systems or providing Transport for Greater Manchester and the Metro Mayor of Greater Manchester, Andy Burnham, the opportunity to package up fares in a different way more suited to local passengers.
• greater flexibility for people in Greater Manchester who do business in other cities through more and cheaper ‘advance fares’ for long distance travel, sold on the day. This builds on the work the rail industry is already doing to make advance purchasing available up to 10 minutes before travel on many routes.

Paul Plummer, Chief Executive of the Rail Delivery Group, which represents train operators and Network Rail, said: “The result of our nationwide consultation is clear, customers have different needs and want an easy to use range of rail fares to meet them. Our proposals would deliver exactly that, creating a system that better fits how people live and work today.

"Rail companies are already working together on plans for trials so people can see what our proposals could mean for them.  However, current regulation needs to be updated and we want to work with government, who are key to making improvements a reality, to deliver the better fares system the public wants to see."

Richard Greenwood, Chair of Support the Oldham Rochdale Manchester rail line (STORM) said: “Whilst the object is stated to make buying tickets easier and with more flexibility, the proposals seem to be difficult to understand due to jargon.  

“Probably a lot of people whose views were taken thought that lower fares would be a good idea.

“The proposals will not necessarily accomplish this.  

“True some fares may be reduced, but the total of money from ticket sales must remain the same whatever proposals are made.  

“Some fares may be cheaper, but these will be offset by increases.  

“STORM fears that some of the excellent value cheap fares may disappear.  

“There are some good points, such as season tickets to benefit people who don't use them five days a week.  

“Also, intermodal tickets in Greater Manchester where passengers from Littleborough or Castleton to Rochdale Town Centre can easily book a through ticket though there's no guarantee that a combined rail/Metrolink journey for a stated distance will be the same as for a journey of that distance undertaken on either Metrolink or train.”

Anthony Smith, chief executive of independent passenger watchdog Transport Focus which led the easier fares consultation jointly with RDG said: “Passengers want to see root and branch reform to the outdated and outmoded fares and ticketing system. Trials will provide reassurance and allow passengers to understand the impact of the changes.”

The rail industry is already working together to improve the ticket buying process, within the current regulatory structure. This includes removing unhelpful jargon from over half a million tickets, making ticket machines simpler and easier to use, and making advance purchasing available up to 10 minutes before travel on many routes.

Chris Fletcher of the Greater Manchester Chamber of Commerce said: “Rail travel, eases congestion on roads across Greater Manchester, helps businesses move goods and people around and rail improvements across Manchester will increase opportunities for local businesses.

“Having an up-to-date fares system across the UK will make travelling more attractive, simpler and more flexible for commuters and that’s why we’re backing the rail industry’s proposals to reform the fares system.”

Henri Murison, Northern Powerhouse Partnership Director, said: “Travelling around the North should be as easy and seamless as possible. As our network modernises and becomes fit for purpose through the Strategic Transport Plan, fares should be as low as possible, technology working out the cheapest options, with discounts for loyalty for those who regularly travel, including part time workers who don’t need a traditional season ticket.

“Northern have seen huge benefits from their existing piloting of smart ticketing. Greater transparency and simplicity is the next step to the final destination of capped fares within the North. Government need to remove the barriers they have put up to prevent reform to benefit passengers.