Railcards to go up by £5

[jthjth]

According to the budget documentation railcards, excepting Disabled, are to go up by £5

page 97

https://assets.publishing.service.gov.uk/media/6722120210b0d582ee8c48c0/Autumn_Budget_2024__print_.pdf

Subject to an industry proposal, the government will also agree a £5 increase to the price of most rail cards (except the disabled person’s rail card). On average rail card holders save up to £158 per year. These policies will support the Secretary of State for Transport’s plans for reform, which will increase efficiency and reduce costs, while boosting ridership....

 

[transportphoto]

Can you find a quote from the document and copy/paste it for ease of reading? 168 pages is a lot to scroll through to find it!

 

[Darandio]

Subject to an industry proposal, the government will also agree a £5 increase to the price of most rail cards (except the disabled person’s rail card). On average rail card holders save up to £158 per year. These policies will support the Secretary of State for Transport’s plans for reform, which will increase efficiency and reduce costs, while boosting ridership and revenue and improving performance, laying the groundwork for the transition to Great British Railways.

 

[A S Leib]

I thought Forces Railcards were currently below £30; what will their new price be? I'd guess this means three-year ones going up to £75-£80.

 

[JonathanH]

While increasing the price of railcards is a small measure in the grand scheme of things, what exactly does it do for supporting "the Secretary of State for Transport’s plans for reform, which will increase efficiency and reduce costs, while boosting ridership and revenue and improving performance"?

Is the point that it gives a bit of wriggle room elsewhere in the overall level of support?

 

[LNW-GW Joint]

This is the key paragraph relating to current rail services (not major capital projects).
Railcards will rise by £5 and regulated rail fares* by 4.6% (RPI+1%) on March 2.

https://assets.publishing.service.gov.uk/media/672232d010b0d582ee8c4905/Autumn_Budget_2024__web_accessible_.pdf

4.72 The settlement will also support the government’s ambition to improve the performance and reliability of rail services, ensuring the rail sector can operate effectively and become financially sustainable. Since the pandemic, the government subsidy for passenger services has increased to meet a shortfall in revenue as travel patterns have changed, in addition to the funding it provides to operate and maintain the rail network. The government will look to recover this shortfall to support services and ensure the railway is able to operate effectively. The government confirms that the annual regulated rail fares cap will rise by 4.6% on 2 March 2025, one percentage point above RPI. This will be the lowest absolute increase in three years. Subject to an industry proposal, the government will also agree a £5 increase to the price of most rail cards (except the disabled person’s rail card). On average rail card holders save up to £158 per year. These policies will support the Secretary of State for Transport’s plans for reform, which will increase efficiency and reduce costs, while boosting ridership and revenue and improving performance, laying the groundwork for the transition to Great British Railways. The government also recognises the value that rail manufacturing brings to the UK and is in the early stages of agreeing a rolling stock strategy that will bring stability to the sector.

*In England presumably.
Scotland and Wales can vary their increase, but it's unlikely they will.

 

[CyrusWuff]

The key wording in that quote being subject to an industry proposal.

Given Railcards last increased in price in 2013, an increase is well overdue, but £5 feels like too much in one hit.

 

[JonathanH]

Given Railcards last increased in price in 2013, an increase is well overdue, but £5 feels like too much in one hit.

Does that matter for a one off purchase once a year so long as it now doesn't increase again for a few years? The press release points out that the average saving is £158.

 

[Jan Mayen]

If only the price of my Annual Gold Card was to rise by only £5 when I renew my season ticket in June next year....

 

[A S Leib]

Maybe there should be the option to pay in installments? £3 per month by direct debit feels fine, even though I know it's still the same (well, slightly higher) increase.

Keeping the option to pay in one go makes sense for people who buy railcards to save money on one or two journeys per year and wouldn't want the reminder of the railcard cost outside those times.

 

[Haywain]

Given Railcards last increased in price in 2013, an increase is well overdue, but £5 feels like too much in one hit.

I'm astonished it's so little. It's well overdue and an increase of £10 or even £15 wouldn't have been unreasonable after so long.

 

[Bletchleyite]

I'm astonished it's so little. It's well overdue and an increase of £10 or even £15 wouldn't have been unreasonable after so long.

Particularly if the minimum fares (where applicable) don't go up.

 

[Tazi Hupefi]

As you'd expect, there were plenty of other ideas / proposals rather than a simple £5 increase, however, the time isn't right politically for wider reforms to discounts - same with the various projects within the the GBR fares and ticketing function.

I am also highly suspicious of the average £158 saving per year figure with a Railcard. I'm sure it's accurate, but I don't think it's really a valid statistic to highlight in this way, I suspect it's a mix of very high and very low savings/useage - which gives this middle ground. Some people would save that in one trip on an InterCity Anytime fare or in first class.

I suppose it essentially shows the upper cap of what you could charge for a Railcard per year. I reckon a lot of people would still pay £150 a year for one - especially if you made it a £15/month paid subscription with "2 free months". Banks etc would probably start packaging them with their premium accounts.

 

[Bletchleyite]

I suppose it essentially shows the upper cap of what you could charge for a Railcard per year. I reckon a lot of people would still pay £150 a year for one - especially if you made it a £15/month paid subscription with "2 free months".

I reckon I'd pay up to about £200 pa for a "National Railcard". Possibly even more if it was by monthly direct debit and/or allowed peak time use.

Banks etc would probably start packaging them with their premium accounts.

Monzo already do.

 

[A S Leib]

Banks etc would probably start packaging them with their premium accounts.

Santander's student accounts include railcards as well.

It's rare that I'd travel by train fewer than four times per month, and normally considerably more. Even at £7.50 per journey each way (and I definitely spend more than that), that would be at least £240 per year. I suspect there'd be relatively low demand for a railcard at that price though, unless it could be used during standard commuting times.

 

[Adam Williams]

I'd guess this means three-year ones going up to £75-£80

I'd also be interested to see what they do to the 3-year railcards.

It's strange to me that only some of the products actually support the 3-year variant.

 

[Belperpete]

While increasing the price of railcards is a small measure in the grand scheme of things, what exactly does it do for supporting "the Secretary of State for Transport’s plans for reform, which will increase efficiency and reduce costs, while boosting ridership and revenue and improving performance"?

It will boost revenue. I doubt hardly anyone who currently pays £30 is going to quibble about £35, so an instant 16% rise in Railcard revenue. As others have said, it is now over ten years since the price was last put up.

As for the suggestion of paying for it by instalments - If the Railcard cost a hundred quid or more, there might be some argument for paying for it by instalments, but for something that only costs £35!!

 

[ChrisC]

I'd also be interested to see what they do to the 3-year railcards.

It's strange to me that only some of the products actually support the 3-year variant.

I would think that a 3 year rail card will be increased to at least £80. My current 3 year rail card expires half way through April next year and so it will be the new increased price for me to renew.

 

[Horizon22]

While increasing the price of railcards is a small measure in the grand scheme of things, what exactly does it do for supporting "the Secretary of State for Transport’s plans for reform, which will increase efficiency and reduce costs, while boosting ridership and revenue and improving performance"?

Is the point that it gives a bit of wriggle room elsewhere in the overall level of support?

Arguably it is doing this bit:

which will increase efficiency and reduce costs...boosting revenue

There is always the balance between increasing costs to a service and whether the cost will cause someone to no longer use it (basically economic elasticity of the good). Overall a £5 increase in cost will still make a railcard worth it and let you have a considerable saving on just one mid-distance return journey.

 

[Titfield]

I would think that a 3 year rail card will be increased to at least £80. My current 3 year rail card expires half way through April next year and so it will be the new increased price for me to renew.

may be worth buying early if a retailer has a discount offer like trainline did this time last year - 30% off.

 

[Doctor Fegg]

Meanwhile fuel duty…

 

[Mark J]

To those saying 'only a £5 increase' and 'long overdue'.

The discount was reduced from 34% to 33.4% not long ago. Meaning we are already paying more than the likely £5 increase - over the course of a year.

So we will be paying more for a Railcard that technically offers a worse discount than before - especially those who can only get a Network Railcard.

 

[JonathanH]

So we will be paying more for a Railcard that technically offers a worse discount than before - especially those who can only get a Network Railcard.

It might be spun that with the fare increase, passengers will be saving more money on fares as well. If an average user saves £158 as the press release suggests, that saving will go up to nearly £163 next year, paying for the increase in the railcard.

 

[Haywain]

So we will be paying more for a Railcard that technically offers a worse discount than before - especially those who can only get a Network Railcard.

The increase of £5 is far short of the comparable increase in rail fares over the same period. And that's for every railcard holder - the changes make no special distinction for Network Railcard holders.

 

[Watershed]

Meanwhile fuel duty…

Quite. Not even the 5p cut is being reinstated. I wonder at which point the government will give up the pretence that it's subject to inflationary increases.

This, together with the appalling 50% increase in the bus fare cap, symbolises everything that is wrong with this country's attitude to public transport. We pay mere lip service to such quaint notions as sustainability.

 

[Horizon22]

Meanwhile fuel duty…

Well yes this is equally disappointing. I personally wouldn’t be as bothered by the bus fare cap rise and railcard rise, if fuel duty hadn’t been frozen, yet again. For some reason it’s seems politically untenable to raise it ever.

 

[jthjth]

Well yes this is equally disappointing. I personally wouldn’t be as bothered by the bus fare cap rise and railcard rise, if fuel duty hadn’t been frozen, yet again. For some reason it’s seems politically untenable to raise it ever.

Fuel duty increases feed back into inflation figures, both directly for a domestic user and indirectly by raising road haulage costs. The increase in the minimum wage is likely to push inflation up, so I guess the Treasury don’t want to push inflation on too many fronts at the same time. Increased inflation affects government borrowing costs and keeps mortgages higher.

 

[Trainbike46]

In that case, you should have kept railway tickets and bus fares frozen too - but rail fares are to increase by RPI+1%, and the bus fare cap for most of England goes from £2 to £3 - so a 50% increase. Note that RPI is usually the highest of the various measure of inflation in use as well, so the increase is actually more than 1%point above inflation.

Freezing the government-set costs on driving while upping the costs of public transport will push more people towards driving, and that hurts everyone, including people who drive.

The now 15-year fuel duty freeze also interferes with the long-term aims of fuel duty. Fuel duty serves multiple purposes, and one of them is to make steps that reduce fuel use, including driving less, but also more fuel efficient HGVs, etc., more financially attractive. In order for that to work, fuel duty should at least be increasing with inflation. Instead, it has been frozen every single year since 2010, and was actually reduced in 2022 by the tories. This has lead to an increase in carbon emissions that could easily have been avoided. I'm sad that labour has chosen to perpetuate that.

 

[TUC]

The increase of £5 is far short of the comparable increase in rail fares over the same period. And that's for every railcard holder - the changes make no special distinction for Network Railcard holders.

Why should any distinction be made?

 

[ScotTrains]

Why is it many Railcards (family& friends, 16-25, 26-30 etc) don't work on non-advance 1st class fares?

Surely allowing them on off peak 1st class fares would bring in far more income.
I travel a lot less by train because I can't use my railcard on 1st class tickets. I now only travel 1st class if my wife agrees to come too so we can use our Two Together Railcard (which does work on 1st class tickets).

I don't think I'll bother renewing my single person Railcard next year, especially if the price increases.