News has come around that travel prices are set to increase up to 6% from January 2013, which is a result of inflation being 3.2% in July 2012. This would be the 10th consecutive year that fares have increased due to inflation.
Why are prices increasing?
The rail industry is restricted to how much it can increase travel prices. It can only increase prices by the rate of inflation plus 3%. It's reported that the prices could have been a lot higher but due to Government intervention, the price increases could only be 1% over inflation rather than the normal increase of 3% over inflation. Therefore fare increases on average are 4.2%.
Daily commuters to and from work are hit the hardest. For example:
- Northampton to London Euston will go up by 4.6% to £4,980 for an annual ticket
- The biggest increase can be seen for an annual rail ticket from Canterbury to London from £4,588 to £4,860 (an increase of 5.9%).
Whilst many fares are increasing some are decreasing. A season ticket from Shenfield in Essex to London dips in price from £2,720 to £2,704 (down 0.6%) saving £16.
Some train operators are allowed to raise non-regulated fares as far as they want and further price rises are expected in the coming days.
Pockets are going to be squeezed and many families will feel the effect of high travel prices, especially after the festive season. We’re seeing energy prices increasing, food prices increasing and wages staying the same.
How to beat the fare rise:
- Buy tickets in advance. Tickets go on sale 12 weeks before the travel date, so the earlier you book the more money you save.
- Buy single tickets. Sometimes buying single tickets in place of a return ticket may be cheaper. Always check to single and return journeys and compare prices.
- Railcards. If you are a frequent traveller, it's worth investing in a railcard. They are available for 16-25 year olds, over 60's, those with disabilities and family tickets. They cost £28 or £20 and can give the cardholder up to a third off travel fares.
- Buy next year’s ticket at this year’s price. Buying season tickets before the end of the year could be cost effective as you will not be paying the higher prices that will be implemented on the 1st January 2013.
National Rail Enquiries offers a Season Ticket Calculator
, which is a useful tool to show you how much time and money could be saved. As rail fairs continue to rise, it is always worth taking time to scout around for cheaper fares or methods that can offer you cashback.
Our cashback retail partner RedSpottedHanky.com
offers rail tickets at reduced prices and does not have any extra charges for paying by card. RedSpottedHanky.com offers Pockit Pay Monthly cardholders 2% cashback on their train tickets.
How does it work?
- Go to www.redspottedhanky.com
- Choose your journey and train times
- Pay with your Pockit Pay Monthly Card
- Earn 2% cashback off the total value of your purchase
For more information take a look at the following: