Ipswich-London Rail Fares

Lord Johnson of Marylebone Excerpts

Monday 15th October 2018 Commons Chamber

[The Minister of State, Department for Transport (Joseph Johnson)]

I congratulate the hon. Member for Ipswich (Sandy Martin) on securing this debate. I am delighted that he is a fan of the railways and that he takes such pride in his local station in Ipswich.

I recognise the issues that the hon. Gentleman raised in relation to, in particular, the fares between Ipswich and London. As he recognised, these are, to some extent, the result of historical anomalies. As someone who follows the railways closely, he will know that following privatisation in the early ’90s, the operation of the Great Eastern main line was shared between two operating companies until 2004. First Great Eastern operated stopping services from Liverpool Street to Ipswich and Anglia Railways operated the intercity services from Liverpool Street to Norwich. This led to a divergence of fares, increasing the pence-per-mile cost of Ipswich to London relative to, as he pointed out, Manningtree to London.

Manningtree was the furthest extent of the Network Railcard area, and Ipswich was the first station where fares were set by the intercity operator. They were set to reflect the different standard of services and offering on the intercity services, including for example, faster, air-conditioned trains. I appreciate that the differences in the fares today can seem unfair to passengers, but it is always possible for advance fares to be bought for travel between Ipswich and London for as little as £10.

As a Government, we have committed to reviewing rail ticketing to remove pricing complexity and perversity, and we are also awaiting the findings of the Rail Delivery Group’s “Easier Fares” consultation. That consultation concluded in September after running for three months. It aimed to look at fare structures and ticketing to ease passenger confusion, with a broad scope. The Rail Delivery Group received approximately 20,000 responses, which it is in the process of analysing, and I look forward to seeing its findings. As the hon. Gentleman mentioned, the recently announced rail review will also consider how to support a railway that is able to offer good value fares for passengers. In his thoughtful speech, he made a number of proposals for fares reform, which I will ensure reach the team that is undertaking the rail review, so that they can consider that as a submission to their work on that part of the review.

[James Cartlidge]

On the point about reforming how fares are charged, I held an Adjournment debate on part-time season tickets, because there is a concern about that for many of us. We have many constituents who travel perhaps three or four days a week but have to pay a full season-ticket price. People constantly email me about the unfairness of that, and I wonder whether it will feature in the consultation that the Minister referred to.

[Joseph Johnson]

I thank my hon. Friend for that intervention. Introducing more flexible ticketing is a priority. We want to see franchises—not just in East Anglia and on the Greater Anglia part of the network, but across the country—looking at how creative they can be to ensure that people who work part-time have a means of securing tickets that are good value for money.

[Dr Drew]

Will the Minister include ticket machines in his review? One of the biggest rip-offs is when people cannot get the cheapest tickets. I am not talking about pre-buying; I am talking about how the machines always offer the most expensive fare.

[Joseph Johnson]

Absolutely. Ticket machines should be programmed to offer the best-value fare, and to the extent that they are not, it is worth further consideration by the team undertaking the rail review.

Turning to the cost of fares, the Government and the train operators have made long-term and far-reaching investments in the railways to cope with the considerable increase in use in the years since privatisation. Fares revenue is crucial to funding day-to-day railway operations, and the massive upgrade programme we are delivering now will benefit passengers. We know that a rise in rail fares can affect the family budgets of hard-working people, including commuters in the constituency of the hon. Member for Ipswich and in London, which is why, for the sixth year running, we will be capping regulated fares in line with inflation.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I thank my hon. Friend for his welcome news on capping rail fares, but does he not also agree that it is difficult for customers to disaggregate the cost of the fare—those in Ipswich are very high per mile by national standards—from reliability and speed of service? Despite the cost of tickets from Ipswich, reliability and speed of service have not improved over the years. Reliability, speed of service and track capacity desperately need to improve and be better linked to fare prices.

[Joseph Johnson]

Of course I agree that performance, whether measured by reliability or punctuality, is exceptionally important to passengers and their perception of value for money. Performance on Greater Anglia has been reasonably good over recent weeks. From memory—I am seeking a prompt—I think its public performance measure is around 89%, so just a couple of percentage points off its target for the relevant period, but there is always room for improvement and we carefully monitor how it is doing against its targets.

[Alex Chalk (Cheltenham) (Con)]

I take an interest in this because Cheltenham, perhaps like Ipswich, is affected by pricing perversity, meaning it is much more expensive per mile to travel from Cheltenham—[Interruption.]—and indeed from Stroud, which the hon. Member for Stroud (Dr Drew) represents, than from other equivalent parts of the country. I am delighted about the review, therefore, but will it address this geographical perversity, which disadvantages my constituents?

[Joseph Johnson]

No one could defend the current fares system, and I will certainly not attempt to do so; it needs thorough reform, and the rail review’s work will be an important contribution to that process.

[Vicky Ford]

May I encourage the Minister to look again at the punctuality figures, because it does not feel to my constituents that the trains are arriving on time nine days out of 10?

[Joseph Johnson]

I cannot speak to the experience of my hon. Friend’s constituents in particular, but I can confirm that Greater Anglia’s overall performance is currently around 89.1%, on the public performance measure, which assesses whether a train arrives within five minutes of its scheduled arrival time. That is against its target, under the franchise for this period, of 91.3%, so it is only marginally off what we have specified for that period of the year.

For the sixth year running, we are capping fees in line with inflation. It is important that we continue to receive this fare income, albeit capped, because it makes such a vital contribution to the investment that we are piling back into the rail system: 98p in every pound goes straight back in as investment. The most significant of those costs are the investments in the network itself and in staff costs, which is why it is so important that we get fares linked ultimately to the more commonly used CPI measure of inflation. For that to be sustainable, we need income and costs in the industry to change in parallel. Linking fares to the CPI without linking other costs in the industry to it would cause higher and higher costs to be borne by the taxpayer rather than by rail users. The Secretary of State wants to work with the rail industry, the Office of Rail and Road and the unions to ensure that wage costs for all employees are based on the CPI and not the RPI in future pay deals.

As the hon. Member for Ipswich noted, we are ensuring that when things do go wrong, passengers are compensated fairly. As was noted a few moments ago by my hon. Friend the Member for Chelmsford (Vicky Ford), we are in the process of moving Greater Anglia from Delay Repay 30 to Delay Repay 15, and we hope that the hon. Gentleman will be able to welcome that on behalf of his constituents. In his statement to the House on Thursday, the Secretary of State said that he wanted Delay Repay 15 to be introduced next year.

Stations are also receiving significant investment. Services on the Great Eastern main line between Norwich and London will be improved considerably. As I hope the hon. Gentleman recognises, access for disabled people at Ipswich station has been improved and smart ticketing has been introduced, all within the period of capping fare rises at inflation only. As a result—as the hon. Gentleman said—Ipswich station recently won the “large station of the year” award at the 2018 national rail awards event. That is all part of a £60 million programme of investment by Greater Anglia in stations on its network until 2025.

A number of members mentioned the new trains that will be introduced during the franchise period. That is an exciting and promising development for passengers in East Anglia. There will be 169 new trains—most of them electric, but some bimodal—to replace old British Rail-era rolling stock: much cleaner-running, faster, more spacious and more efficient modern trains for Members’ constituents.

[Will Quince (Colchester) (Con)]

My constituents, who also travel on the Great Eastern main line, have waited for, in some cases, 40 years for the brand-new fleet of trains that will be introduced next year. The Minister mentioned changes in fares and infrastructure changes. Can he confirm that none of those changes would threaten the introduction of the new trains?

[Joseph Johnson]

Indeed they will not. Our priority is to ensure that the new trains are in service by the end of 2020. Once they have been introduced, passengers in Colchester will experience improved journey times, much greater reliability, and much more comfortable journeys.

I thank the hon. Member for Ipswich, and all colleagues in the Chamber who represent East Anglia—and parts of Gloucestershire, and areas further afield—for their contributions. We will continue to look at ways of being able both to improve services and to keep the cost to the passenger to a minimum. Greater Anglia is a train operator that will be in place at least until 2025, and it has shown a willingness to work with the Government and invest in the railways. I hope that, when we reach the end of the term of the East Anglia franchise, we will all be proud of the successes that the Government’s partnership with Greater Anglia has achieved.

Question put and agreed to.