Overhaul of rail fares to simplify ticketing announced

A long overdue move to simplify the maze of fares faced by rail travellers will be announced tomorrow.

The government aims to save £1bn a year by the end of the decade in the biggest revolution of the network since the railways were nationalised.

Train Operating Companies will shoulder two-thirds of the proposed cuts and Network Rail the remaining third. However, the grim reality for passengers is more years of inflation-busting ticket price rises.

Greater emphasis will be placed on simple, flexible ‘airline-style’ ticketing, where passengers pay more when a train is full and less when it is empty.

The changes will follow the ‘value for money’ report of government trouble-shooter Sir Roy McNulty, who will present his report tomorrow.

Sir Roy is expected to heavily criticise escalating costs and partly blame trade unions’ demands.

His verdict could lead Transport Secretary Phillip Hammond into battle with RMT union boss Bob Crow. Mr Hammond will point to studies showing it costs 40% more to operate the UK rail network than systems in Germany, Holland and France.

There is also a likelihood that travel perks enjoyed by up to 500,000 former BR staff and their families will be targeted.

The Government is already committed to annual fare rises of Retail Price Index inflation plus 3% for the next three years. In response, Mr Hammond will announce the setting up of a ‘fares review’.