Railways: Fares

Lord Bradshaw
asked Her Majesty's Government:

Whether the present level of railway fares is conducive to maximising the use of the network. [HL2508]

Lord Bassam of Brighton
Over the past 10 years, the commercial approach to pricing taken by train operators has helped to generate the 40 per cent increase in passenger volumes which has given Britain the fastest-growing railway in Europe. Commercial pricing means charging higher fares at peak times when trains are full, but lower fares in the off-peak to attract additional passengers. This helps to achieve value for money in terms of both passengers carried and subsidy required.

Where operators have a degree of market power—for example, commuter transport into London and other big cities—the Department for Transport places a limit on fares increases. As a result, these regulated fares are currently on average 2 per cent less in real terms than they were in 1996.