England’s Regulated Train Fares and Railcard Costs to Increase in 2025

The government has declared that regulated train fares in England will see a 4.6% increase next year, alongside a £5 rise in the cost of most railcards. These increases were detailed in the Treasury’s budget document, rather than being part of the chancellor’s Budget speech to the House of Commons on Wednesday. These adjustments are scheduled to take effect on 2 March 2025. Separately within the Budget, Chancellor Rachel Reeves outlined tax hikes totaling £40bn, aimed at improving public finances, and committed billions in additional funding for schools and the NHS. Approximately 45% of all rail fares across England, Wales, and Scotland are subject to government regulation; however, the announced fare increase specifically applies to travel within England. Regulated fares encompass season tickets for the majority of commuter routes, certain off-peak return tickets for long-distance travel, and flexible tickets used for journeys within and surrounding major urban areas. While train operators retain the autonomy to determine prices for unregulated fares, these usually see comparable increases. According to the Treasury, the 4.6% rise in regulated rail fares for 2025 exceeds July’s Retail Prices Index (RPI) inflation measure by one percentage point. The government stated: “It’s the lowest absolute increase in three years.” Furthermore, it noted that the £5 increase for railcards, which offer discounts to various demographics, would undergo an industry review. Most railcards typically cost £30 annually. The government confirmed that individuals holding a Disabled Persons Railcard will not be impacted by this change. It also mentioned that railcards provide users with average annual savings of “up to £158” annually. Conversely, the Campaign for Better Transport characterized the decision to raise rail fares above inflation and increase railcard prices as a “kick in the teeth” for individuals dependent on public transport, especially those with lower incomes. The organization commented: “Doing this at the same time as keeping fuel duty frozen sends entirely the wrong message. “To tackle air pollution, congestion and climate change, we need to make public transport the attractive, affordable choice.” In parallel, Rail Partners, an association representing private rail entities, contended that the government should prioritize increasing passenger volumes rather than imposing higher costs on existing travelers. Andy Bagnall, the chief executive, stated: “Government should set fares at a level that will ultimately encourage more people to travel by train in the future, helping to secure the long-term financial sustainability of the sector and capture the wider economic and environmental benefits of rail for the nation as a whole.” He reiterated: “The focus must be on growing passenger numbers, not making current passengers pay more.” Additional provisions revealed in Wednesday’s budget encompassed increases to the fundamental rates of capital gains tax, an elevation in the percentage of National Insurance contributions required from businesses, and an increase in the maximum single bus fare from £2 to £3. Chancellor Reeves also implemented a rise in the minimum wage, extended a 5p reduction in fuel duty for an additional year, and made various pledges to fund rail infrastructure, including the segment of HS2 extending to London’s Euston station. Conservative leader Rishi Sunak commented that “never in the history of our country will taxes be higher than they are under this Labour government”. He further dismissed as “nonsense” the notion that Labour inherited challenging conditions, following Chancellor Reeves’ accusation that the Tories had left a £22bn “black hole” in the public finances. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our policy on external linking is available.