Rail fare structure 'not ideal', admits transport minister

Transport minister Norman Baker has admitted the current rail fare structure is "not ideal" and said the government wants to end above-inflation rises as soon as possible, as commuters returned to work after the Christmas break to face sharp fare increases.

Campaigners claim that fares for season ticket holders have risen by as much as 50% in the past decade, making travelling to work by train an extravagance that growing numbers of people struggle to afford.

Commuters returning to work face average season ticket increases of 4.3% and an overall rise on ticket prices of 3.9%. The Campaign for Better Transport (CBT) says these are just the latest in a series of fare increases, which are having an "appalling" impact on commuters.

Baker said a fares and ticketing review was examining the balance of regulation and which fares are regulated. Approximately 40% of fares are regulated by the government. The other 60% are unregulated and decided by the train companies themselves, he said.

"It's not ideal – there are over 100,000 rail tickets and different prices each year to deal with," Baker told Radio 4's Today programme. "It's a hugely complicated issue."

He added: "So it's important we try to get the best value for the passenger, the best value for the taxpayer and the simplest, [most] transparent system we can, given the need to ensure rail companies can price appropriately to attract people on to off-peak trains, which might otherwise be running empty."

CBT said its research showed that in the past decade London commuters have seen average season ticket costs increase by £1,300; fares growing 20% faster than wages; and average costs in real terms increasing by £360.

The CBT chief executive, Stephen Joseph, said: "It's truly shocking that we have deliberately made getting the train to work an extravagance that many struggle to afford. The time has come not just to stop the rises but to reduce fares."

In the past 10 years, rail fares rose significantly in all parts of England but there were big differences between routes over that period. Annual fares from Sevenoaks in Kent to London have increased by nearly 90%, from £1,660 to £3,112; and from Wednesday, commuters travelling between Worcester and Birmingham Moor Street will pay £1,240 for a season ticket compared with £816 in 2003 – an increase of £424 or 52%.

The TUC said average train fares had risen nearly three times faster than average wages since the beginning of the recession in 2008. It said this "huge disparity" between fare and wage increases meant that a family of four travelling to London on an Anytime ticket from Swansea, Plymouth, Leeds, Manchester or Newcastle in 2013 would have to pay more than the average weekly wage of £481.

The TUC general secretary, Frances O'Grady, said: "At a time when real wages are falling and household budgets are being squeezed, rail travellers are being forced to endure yet another year of inflation-busting fare increases.

"As well as having to shell out record amounts of money for their tickets, passengers also face the prospect of travelling on trains with fewer staff and having less access to ticket offices. They are being asked to pay much more for less."

Michael Roberts, the chief executive of the Association of Train Operating Companies, blamed the government. He said: "Ministers want passengers to pay a larger share of railway running costs to reduce the contribution from taxpayers while sustaining investment in better stations, new trains and faster services."

Labour said it would impose a "strict" cap on future rail fare rises, accusing the prime minister, David Cameron, of misleading commuters. The government had intended to allow train companies to raise the average price of regulated fares – which include season tickets – by retail prices inflation plus 3% this and next January.

In October, Cameron announced it would instead be limited to RPI plus 1% – a 4.2% rise. However, Labour said the government had undermined its pledge by reinstating flexibility, allowing firms to raise non-regulated fares.

The shadow transport secretary, Maria Eagle, said: "David Cameron misled commuters when he promised to cap fare rises at 1% above inflation. Many commuters have faced a nasty new year shock as they discover fares have gone up by as much as 9.2% … Labour would strictly enforce the fare cap on every route and restore the ban on train companies imposing higher increases."