Cost of Living: Rail Fares

Baroness McIntosh of Pickering Excerpts

Monday 6th January 2025 Lords Chamber

Asked by

[Baroness McIntosh of Pickering]

To ask His Majesty’s Government what assessment they have made of the effect of the level of rail fares on the cost of living.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, before I answer the Question, I must say how sad I am to hear of the death of the noble Baroness, Lady Randerson, who I have known for a long time. I was expecting to see her in her place today for this Question but, sadly and unexpectedly, that was not to be. I will say more at the Second Reading of the Bus Services (No.2) Bill on Wednesday.

I turn now to the Question. We aim to keep the level of fares at a point that works for passengers and taxpayers. The forthcoming 4.6% increase to regulated rail fares is the lowest absolute increase in three years. To further balance rail fares with the cost of living, various concessions, rail cards and promotions are available. In early 2025, we will be holding a network-wide rail sale, giving passengers savings of up to 50% on selected advance and off-peak fares.

[Baroness McIntosh of Pickering (Con)]

I thank the Minister for that Answer. I would like to add my personal condolences on the loss of the noble Baroness, Lady Randerson, who was an outstanding parliamentarian and public servant.

Does the Minister agree that the rail fare increase is a direct consequence of agreeing an increase in train drivers’ pay without agreeing an increase in productivity? Further, can he explain to the House how he expects fare increases and the inflationary increase to achieve the Government’s core goal of fuelling growth in the economy?

[Lord Hendy of Richmond Hill (Lab)]

The pay increase for train drivers and other railway staff, made last July, was in truth very little different from the proposals of the previous Government—although these were manipulated so that the dispute was unresolved for many months, leading to a huge loss in revenue for the railway. The previous Government’s proposals had no productivity conditions attached to them. This Government were not in a position to offer productivity conditions, simply because many of the train companies had not developed proposals that would enable a wage deal to be made.