2016 fare increases

Discussion in 'Fares Advice & Policy' started by Cletus, 18 Aug 2015.

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  1. Cletus

    Cletus Established Member

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    Next year's increases are based upon the July inflation figure.

    http://www.bbc.co.uk/news/business-33971890


    Also on the BBC website:
    http://www.bbc.co.uk/news/business-33968318

     
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  3. LNW-GW Joint

    LNW-GW Joint Veteran Member

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    This is the DfT line: https://www.gov.uk/government/news/earnings-outstrip-rail-fare-increases-for-first-time-in-a-decade

    Apparently the government has just gifted you an iPad!
    The stock photo used at the top of the press release was, I think, taken at Edinburgh Waverley.
    Which is misleading, because the DfT announcement actually only applies to England (except TfL and Merseyrail), and does not cover Wales or Scotland which have their own fares policy.
     
  4. swt_passenger

    swt_passenger Veteran Member

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    The usual sweeping generalisation:

    "Currently season ticket holders only save if they use their tickets for five out of seven days, but it said shorter season tickets such as a four or three-day-a-week tickets would enable part-time commuters to also make savings."

    Round here (Winchester/Southampton) a weekly season to London pays for itself if you make two peak journeys. I don't think this is the only area with such large savings...
     
  5. Simon11

    Simon11 Member

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    To add to SWT_passenger

    I personally enjoyed:
    "Rail unions are campaigning for train lines to be run by the public sector, which they say will cut prices."

    "Action for Rail - the TUC and rail union-led campaign pushing to bring the railways back into public ownership - maintains that £1.5bn could be saved over the next five years if routes, including the Northern, Transpennine and West Coast Main Line, were returned to the public sector."

    No way are these realistic
     
  6. swt_passenger

    swt_passenger Veteran Member

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    It is the newspaper silly season after all. Don't the TUC etc launch this story in mid August every year?
     
  7. aformeruser

    aformeruser Veteran Member

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    They could cut their own admin costs by getting a developer to write a script which automatically sends out the same press release every August.
     
  8. Aldaniti

    Aldaniti Member

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    Utterly patronising... as if they're doing you a favour...
     
  9. aformeruser

    aformeruser Veteran Member

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    Given Labour promised to freeze regulated rail fares for 2016 you could just as easily argue the Conservatives are depriving hard working people of two family trips to the cinema next year.
     
  10. infobleep

    infobleep Established Member

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    Depends on which cinema you attend. Someone has told me one in Bognor is under £5 for adults.
     
  11. aformeruser

    aformeruser Veteran Member

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    I agree cinema ticket prices vary between towns but then so do rail fares. The DfT iPad claim seems to presume that people in PTE areas can get iPads cheaply while people in central London pay a higher rate.
     
  12. Starmill

    Starmill Events Co-ordinator

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    I'm still reeling from this year's increases. Their effect seemed more punishing than previous January rises. Maybe it's because I have been wanting to do more travelling. There is no doubt my demand is being suppressed by the ridiculous prices we are asked to pay!
     
  13. Hadders

    Hadders Fares Advisor

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    Blimey - I'm not condoning fares increases (and many do increase more than they need to) but I can remember when inflation was running at more than 10%.

    Imagine what that would do to fares today...
     
  14. westv

    westv Established Member

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    I remember when inflation exceeded 20%.
     
  15. aformeruser

    aformeruser Veteran Member

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    Two points:
    1. If people's earnings are going up at the rate of inflation and the cost of tickets is increasing at the rate of inflation then it doesn't really matter what the rate of inflation is as people will have more money to spend on tickets.
    2. The RPI formula only applies to regulated fares. Many leisure travellers using operators such as Virgin, TPE and XC have seen ticket prices go up at a much higher rate in recent years and rises at or above 10% have been applied to unregulated fares.
     
  16. Skimpot flyer

    Skimpot flyer Member

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    One point constantly gets me annoyed...
    If my earnings go up by 3%, and my season ticket goes up by 3%, I am told that I am 'no worse off' in real terms. I beg to differ. My pay may have gone up 3%, but the effect of income tax and NI means I am actually only 2% better-off in terms of real take-home pay. So, in such a scenario, I am actually worse off !!!
     
  17. Camden

    Camden Established Member

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    Outside of the rail industry, especially at the lower end of the wage scale, static wages are common including people who basically will always bob around inside one narrow wage band. It's easy enough to find someone today earning £18 grand a year today who was still earning £18 grand a year in 2005, it's easy enough to find jobs advertised for the same salaries today as 10 years ago too. A 2% rise is cumulative on top of all the rises that have happened previously, and each year fares go up by a single penny it makes it a penny harder for many to afford it.

    Why do we accept that rail fares have to go up each and every year? All it suggests is a lazy approach and no handle on costs.
     
    Last edited: 21 Aug 2015
  18. aformeruser

    aformeruser Veteran Member

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    Let's use £18,000 as an example and presume the person has a pre-2011 student loan as well so the deductions are as high as they can be.

    Using an online tax calculator http://www.listentotaxman.com/ (which isn't 100% accurate) a gross salary of £18,000 in 14/15 would have produced a net salary of £15,096.72. With no pay rise in 15/16 that has become a net salary of £15,229.20 (a 0.9% increase), with a 3% pay rise that would become a net salary of £15,547.40 (a 2.99% increase.)
     
    Last edited: 21 Aug 2015
  19. Camden

    Camden Established Member

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    Which, even if they do receive a pay rise at all, has to cover a lot more in life's rising costs than just their season ticket.
     
  20. aformeruser

    aformeruser Veteran Member

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    If their cost of living and net salary both go up at the rate of RPI then they are no better or no worse off. However is the cost of diesel taken in to account for RPI, as that has been falling this year.
     
  21. arb

    arb Member

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    Your gross pay will have gone up by 3% of your old gross salary. Similarly your take-home net pay will have gone up by 3% of your old take-home pay (ignoring effects caused by boundaries in tax levels). You are 3% better off.

    It's true that your net pay will only have gone up by 2% of your old gross pay, but then you're not comparing like with like.
     
  22. kieron

    kieron Established Member

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    Yes it is. Table 44 seems like the most relevant one.

    It gives Rail Fares a similar weighting to Biscuits and Cakes in the figures, so perhaps it would be more useful to think of next years average regulated fare rise in terms of fig rolls.
     
  23. Howardh

    Howardh Established Member

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    Would they go by train?
     
  24. IanXC

    IanXC Emeritus Moderator

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    Hmm, maybe it's just me but has the picture been changed?!
     
  25. Starmill

    Starmill Events Co-ordinator

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    Looks like Sheffield to me?
     
  26. aformeruser

    aformeruser Veteran Member

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    Huh?

    The Conservatives are claiming they are effectively gifting an iPad to commuters by reducing the increase to RPI, I was providing the counter claim they are costing them two family trips to the cinema given Labour promised a 0% increase for 2016 in their manifesto and the Conservatives are increasing fares by 1%.
     
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