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http://www.bbc.co.uk/news/uk-11818904

Travellers are facing an average rail fare rise of 6.2% in the new
year, according to industry figures.

Regulated fares, which include season tickets, will go up by an
average of 5.8% from January. Some of these fares could rise by as
much as 10.8%.

Some unregulated fares, typically short distance off-peak ones, will
rise by more than the 6.2% overall average, but the industry is not
giving a figure.

There is no price cap on these so rail firms could raise them by much
more.

BBC transport correspondent Richard Scott said: "Train companies are
bound by competition. If they think they can increase it by 10% then
they will but they don't want to drive people off the railways."

'Tough times'

Gerry Doherty, leader of the TSSA rail union, said the rise was
"simply outrageous".

But the Association of Train Operating Companies (ATOC), which
supplied the figures, said the above-inflation rises were a response
to recent government policy changes, which meant passengers having to
pay more towards railway investment.

Michael Roberts, chief executive of ATOC, said: "We know times are
tough for many people but next year's fare increases will ensure that
Britain can continue investing in its railways.

"Even with these fare increases, the money passengers spend on fares
covers only half the cost of running the railways - taxpayers make up
the difference.

"The government is sticking with the previous administration's policy
to cut the taxpayers' contribution to the overall cost of running the
railways.

"Money invested through fares has helped to bring about the record
levels of customer satisfaction and punctuality on the railways
today."

Mr Doherty said: "It is simply outrageous that hard-pressed commuters
are being forced to pay fare hikes of up to 10% when they are
themselves facing pay freezes and job cuts.

"Passengers will regard that as a sick joke seeing as we have the most
expensive and overcrowded railway in Europe."

Regulated fares are tied to an annual price cap formula meaning fares
can increase each January only by the previous July's RPI inflation
rate plus 1%. This means a 5.8% average rise for 2011.

However, companies are able to put up some fares by more than 5% as
long as other fares decrease at the same rate.

In January 2012, passengers will have to dig even deeper into their
pockets when the annual price rise formula changes to RPI plus 3%
across the network.

Our correspondent said rail travel dipped during the recession but, as
the economy recovered, passenger journeys rose 10% over the past year.
Demand, he said, was expected to double over the coming decade.

On Thursday, the government is expected to make an announcement about
long-term rail projects.


Where does your money go?

48p in every £1 goes to Network Rail, which charges operators to
access tracks and other infrastructure costs
17p on staff
17p on miscellaneous costs including train maintenance,
administration, contractors
11p on leasing trains
4p on fuel/energy
3p to train company profit

http://www.bbc.co.uk/news/uk-11818904