Commuters to hand over an even greater slice of their pay packets to train companies next year

Commenting on the inflation figures for July, published today (Tuesday), in which RPI inflation – the measure used to set season ticket rises and most pay settlements – rose by 2.5 per cent, TUC General Secretary Frances O’Grady said:

“This is a miserable day for commuters who will have to hand over an even greater slice of their pay packets to rail companies in the new year thanks to yet more wage-busting fare rises.

“Year-on-year fare hikes are the inevitable result of a broken rail system in which the funds needed for rail improvements are wasted on bonuses for senior executives, company dividends and a pointless multi-million pound franchising process.

“Today’s figures also lay bare the government’s hypocrisy in using different measures of inflation – one to hammer rail commuters and another to reduce the value of the state pension, child benefit and other social security support that families desperately need.

“The Prime Minister must explain how the government’s stealth cut in benefits uprating – which is costing families and pensioners billions of pounds a year in state support – passes his new family test and pledge to protect pensioner benefits.”

NOTES TO EDITORS:
- A TUC analysis of season ticket prices for popular commuter routes across England show that some fares are set to increase by over £100 in 2015. The TUC has set up a rail fare rise projector (available at www.tuc.org.uk/railfareprojector2015) to show how regulated fares have increased since 2010.
- The TUC and its rail unions have organised Action for Rail campaign protests against fare rises and calls for public ownership of the railways at train stations across the country this morning, with several more planned for tonight’s evening commute.
- In June 2010 the Chancellor changed the measure used to increase benefits (including the state pension) every year from RPI inflation to the lower CPI measure, as well as freezing a number of benefits and tax credit elements for several years. Recent TUC analysis found that this stealth cut has been responsible for billions of pounds worth of social security cuts to pensioner families. Further analysis, due to be published on Friday, will show this cut will affect working families too.
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