Study: Government will make profit on rail fare increases

The government is 'profiting from passengers' as a result of rail fare hikes, it has been stated.

17:06 02 January 2014

Campaigners have stated that rail fares are increasing at such a rapid rate out of line with inflation that the government will soon be turning a profit from the commuting public.

By 2018 the fares collected from passengers will cover 103% of railways' operating costs. This is a sharp increase when compared with the 80% from 2009. Consultants Credo, for the Campaign for Better Transport (CBT), put the figures together.

A spokesman for the Department for Transport said: "The most recent forecasts from the Office for Budget Responsibility are that by around 2015 fares will be rising in line with wages and salaries."

The spokesman confirmed that the fares were being used as a plan "to drive forward the biggest programme of rail modernisation ever, with £38bn being invested over the next five years".

Which? claims that the average household dished out 14% of its income on transport. Italians apparently only spend 1% of their income on transport.