Cost of Rail Fares

Simon Lightwood Excerpts

Thursday 10th October 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Simon Lightwood)]

I congratulate the hon. Member for Woking (Mr Forster) on securing this debate on rail fares, and all Members who have made contributions this evening.

For the past 200 years, our railways have been at the heart of our transport network. During that time, they have played an essential role in enabling people to travel across our country, visit their loved ones and seize economic opportunities. This Government are committed to getting our railways back on track, which is why we are already delivering major reforms to fix our country’s broken rail network, in the context of a challenging fiscal inheritance. They include the Passenger Railway Services (Public Ownership) Bill, which will potentially save taxpayers up to £150 million every year in fees alone once all franchises are in public ownership.

Reform and public ownership are essential to delivering further fares reform. The current system is fragmented, with train operators that take no revenue risk making decisions on aspects of fares and ticketing. That is hampering the Government’s ability to make the fares system fit for purpose. Public ownership will allow a joined-up approach to be taken across the network.

[Tim Roca (Macclesfield) (Lab)]

In Macclesfield we have the pleasure of being served by both Avanti and Northern trains, unfortunately. The previous Conservative Government handed Avanti yet another franchise, despite its being one of the least reliable operators in the previous year. Does my hon. Friend agree that our plans for Great British Rail will not only improve reliability but ensure that rather than profits being repatriated to Italy, they are used for the public good here at home?

[Simon Lightwood]

I agree, and I can assure my hon. Friend that in the very first week, when the Secretary of State took office, she summoned a number of companies to her office to hold them to account. They will be held to account, and we are determined to see improvements.

Fares revenue is crucial to funding day-to-day railway operations, as well as Government priorities to put passengers first and improve performance on the railway. However, I recognise the serious concern that consumers have about the cost of rail fares. The affordability of the railway is a key objective for this Government, making sure that, wherever possible, prices are kept at a point that works for both passengers and taxpayers. A rise in rail fares can affect the family budgets of working people, including commuters between Woking and London.

Rail fares have always been an emotive subject, and rises in fares are often contentious. In that context, it is vital that passengers know that they are getting value for money. That is why this Government are committed to reviewing the overly complicated fares system with a view to simplifying it. The regulation surrounding the fares system is rooted in the privatisation of the 1990s, so there will be many opportunities to modernise the fares system as we move towards establishing Great British Railways and bringing forward the legislation needed to take on fares, ticketing and other operational aspects of the railway.

However, there is progress we can make now in improving fares and ticketing. We are progressing the expansion of simpler, easier and more flexible pay-as-you-go ticketing across the south-east. Along with simplified ticketing, pay as you go with contactless offers passengers a best price guarantee on the day. For most passengers, it will always provide them with the best price for a single day’s travel. We are also considering how simplifying long-distance fares can unlock better-value opportunities for passengers, as well as smoothing demand to make the best use of capacity while minimising crowding.

[James MacCleary (Lewes) (LD)]

Rail fares from my constituency of Lewes to London have increased by 20% since 2020, meaning that if increases go ahead this year, a commuter from Lewes will incur £5,500 of cost for a season ticket. For many people whose salaries have not increased in recent years while the cost of living has gone up, that is a major cost. We have seen quite a lot of success capping bus fares in recent years. For some of our local users that has been an improvement. Will the Minister support a similar cap on rail fares?

[Simon Lightwood]

I thank the hon. Gentleman for his intervention. Affordability is one of our six key objectives, so that prices, wherever possible, are kept at an affordable point that works for both passengers and taxpayers.

We are supporting LNER to offer its Simpler Fares trial tickets between London and stations around Newcastle, Berwick-upon-Tweed and Edinburgh from 30 September this year. Naturally, we will evaluate carefully before taking further decisions. LNER has published on its website the opportunities the trial offers, including the new 70-minute flex tickets between Newcastle and London, priced at £45 subject to availability. The ticket offers a degree of flexibility at nearly £40 cheaper than the old super off-peak. LNER sets out that, overall, around half of standard class 70-minute flex tickets sold have been cheaper than the old super off-peak, according to its latest figures.

In addition, those and the vast majority of other tickets on LNER are now sold on a single-leg basis, where a single costs approximately half the price of the previous return ticket rather than being priced within a pound of the return, as was often the case. That allows passengers to pay only for what they need by mixing and matching the right ticket for them for each leg of their journey, for example advance tickets with flexible tickets, or peak with off-peak where those exist.

There is a large range of railcards available to make rail travel more affordable for some, with at least a third off the cost of most rail tickets. Once established, I would expect Great British Railways to take a fresh look at the railcard suite, so that we can encourage the highest possible number of passengers to use our railways.

Woking is part of South Western Railway’s critical corridor between Woking and London Waterloo, and is therefore key to ensuring strong operational performance. South Western Railway recorded an 87% overall satisfaction rating in the Transport Focus rail user survey in September this year.

[Helen Maguire (Epsom and Ewell) (LD)]

Many of my constituents commute into London for work, and they complain that since the pandemic the number of trains has halved. They express their dread at the prospect of squeezing on to yet another train. Despite the reduction in service and the subsequent overcrowding, prices have increased. Residents tell me that they pay extraordinary prices for sub-par service. Does the Minister agree with me that as a principle—

[Madam Deputy Speaker]

Order. I made the point earlier this week that interventions need to be short. They are not mini speeches, they should be spontaneous and they should not be read out. Perhaps the hon. Lady has finished her comments.

[Simon Lightwood]

I thank the hon. Lady for her intervention. If she would like to follow up with me in writing so that she can finish the rest of her point, I would be more than happy to pass it on.

South Western Railway also offers innovative products that let passengers choose tickets that suit their needs, such as the Touch smartcard. This allows tickets to be added to a smartcard online, via an app or from ticket machines at a station. In recent months there has been an issue with a specific set of points at Woking, for which a temporary fix has been found. In the medium term, a more permanent solution will need to be sought, which may cause the temporary closure of lines for planned engineering.

For the commuter, season tickets are still a great way to save money on travel and are available on a smartcard. For two to three-day-a-week commuters, the flexible season ticket offers further savings against traditional season tickets. In Woking, flexible season tickets offer two and three-day-a-week commuters into London better value than both anytime day tickets and standard season tickets.

--- Later in debate ---

Motion made, and Question proposed, That this House do now adjourn.—(Christian Wakeford.)

[Simon Lightwood]

We know that across the country people rely on trains to get to work, get to school, and see their loved ones. That is why we are relentlessly focused on securing improved services for passengers, along with better value for money for taxpayers.

I thank the hon. Member for Woking for securing the debate. I am sure he appreciates that rail plays an important part in people’s lives across the country, and especially in his constituency. This Government are putting passengers at the heart of the railway, and I want to reassure Members that we are working hard on putting in place reforms that will create stronger, more reliable railways that work for the people who use them.

Question put and agreed to.