ATOC responds to Labour’s claim they are “ripping people off”

Responding to Ed Miliband’s claim that train companies are “ripping people off”, Michael Roberts, Chief Executive of the Association of Train Operating Companies, said:

“Ed Miliband is at best suffering from amnesia or at worst displaying rank hypocrisy. Train companies are subject to rules laid down by the Department for Transport, rules that were created and rigorously implemented by successive Labour Transport Secretaries. It was also his party in government that switched from annual below to annual above-inflation fares rises in 2004 to reduce taxpayer subsidies to the railways.

“At a time when Britain needs the private sector more than ever to boost economic growth, this unsubstantiated slur seems to confirm an anti-business bias at the very top of the Labour party and is a unwarranted insult to the tens of thousands of people who work on the railways day in and day out to help keep the country moving.”

Cheap train fares axed as rail operator claims it will ease overcrowding

From: Daily Mail

Cheap train tickets are being scrapped just months ahead of inflation-busting price increases, a leaked memo has revealed.

One of Britain’s largest operators has stopped selling its lowest-priced fares for Friday afternoons and Sundays to prevent overcrowding.

This is despite the fact that cheap advance tickets are used by rail companies to justify large price increases for their more  flexible fare options.

The move comes after passengers were told they would face price rises of up to 13 per cent in the New Year, and nearly 30 per cent by 2015, leading to the £10,000 season ticket. The cheap fares cull at CrossCountry Trains was uncovered by ticketing expert Barry Doe of Rail magazine.

CrossCountry carries more than 31million passengers each year, with more than 60,000 of its journeys each week made using pre-booked tickets.

However, a memo to staff stated that there would be ‘no cheap advance fares anywhere on our network’ before 9.30am on Monday to Thursday, after 12pm on Friday or all day on Sunday, following feedback from conductors.

A spokesman said only the ‘cheapest’ advance tickets had been scrapped, but would not confirm how many had been withdrawn from sale.

‘We know these trains will be very busy,’ he said. ‘Why sell very cheap tickets on a train which is already full?’

The move means further misery for those seeking more affordable fares.

Mr Doe said: ‘People spend hours trawling  the internet looking for the best deal. As a passenger, you never know how many of the cheap tickets are available, or even if it’s zero.’

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’.