Cost of Rail Fares

Tim Roca 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.