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The government has revealed that rail fares in England will be frozen next year for the first time in three decades. This freeze, which will last until March 2027, will cover regulated fares such as season tickets and off-peak return journeys. The latest fare increase, set for March 2025, was 4.6%. Typically, rail fare hikes occur in January, based on the July retail price index (RPI) plus an additional 1%, though this formula has not always been strictly observed.
This decision comes just days ahead of the chancellor’s Budget announcement, during a period when reducing the cost of living is a major priority. The government expressed that the fare freeze is aimed at “directly limit[ing] inflation” by reducing an important component of everyday expenses. Since 2021, regulated fare rises have been scheduled for March instead of January. Although unregulated fares, which are set independently by train operators, might still increase, a government source noted they generally follow trends seen in regulated fares. Over the year leading to March 2025, unregulated fares went up by 5.5%, which is 1.1% higher than the increase seen for regulated fares; overall, rail fares rose by 5.1% during that period.
Rail industry representatives welcomed the announcement. The Rail Delivery Group, which represents train operators across the UK, described the freeze as “good news for customers.” A spokesperson added, “We want our railways to thrive, that’s why we’re committed to working with government to ensure upcoming railway reforms deliver real benefits for customers.” Since privatisation in 1996, the government has controlled some fares, but this upcoming freeze marks the first time fares will remain unchanged since then. Although price hikes have occasionally been lower than RPI increases—and there was a brief dip after the 2010 financial crash—the freeze is unprecedented in recent history.
Regulated fares account for roughly 45% of rail ticket prices in England, Wales, and Scotland, but this freeze applies only to England and to train services operated by companies based there. These regulated fares include season tickets on most commuter routes, certain off-peak return tickets for longer trips, and flexible tickets valid in and around major cities. Unregulated fares are not subject to this policy, though they tend to rise at similar rates. According to government estimates, commuters on pricier routes are expected to save over £300 due to the freeze. Chancellor Rachel Reeves explained that the measure aims to “help ease cost of living pressures, and make travelling to work, school or to visit friends and family that bit easier.” Meanwhile, Transport Secretary Heidi Alexander framed the announcement as part of “wider plans to rebuild Great British Railways,” the forthcoming public body responsible for managing much of the rail network. The government plans for this new organization include taking over tracks and train services to reduce fragmentation, improve standards, and make journeys better value for passengers. It also intends to “gradually move away from annual blanket increases” in fares as part of these reforms.
Labour criticized the fare increases under the previous Conservative government as “relentless,” although shadow transport secretary Richard Holden argued that the Conservatives had “kept fares on the right track with below-inflation rises and consistently called for no further hikes to protect hard-working commuters.
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