Further Misery Ahead for Bad Credit Commuters as Train Fares Set to Rise in the New Year
Train travellers face a bleak start to the New Year as fares are set to rise by an average of 6.2%.
The increase was recently announced by the Association of Train Operating Companies (ATOC), but no details were provided of what the rise would be for each individual train company.
“There seems to be no end in sight for members of the British public who are being repeatedly hit with inflation and price rises of essential items”, stated Andrew James, spokesperson for Bad Credit Loans 4 You, a UK finance specialist at sourcing bad credit loans and bad credit holiday loans /holiday-loans-for-people-with-bad-credit.html
“Those with bad credit are already struggling with fuel price increases, food cost rises alongside UK finance budget cuts and job losses.”
“An increase to the VAT is due in January 2011 and will hit bad credit pockets even harder meaning that some families will look at ways of saving money at Christmas to pay for New Year fares.”
The average 6.2% rise in train fares this winter has been condemned by the Transport Salaried Staff’s Association (TSSA).
Gerry Doherty, leader of the TSSA rail union, criticised Ministers saying; “It is simply outrageous that hard pressed commuters are being forced to pay fare hikes of up to 10 per cent when they are themselves facing pay freezes and job cuts.”
“We will see fares soar by 30 per cent over the next four years as Ministers and private train companies hold passengers to ransom with the lifting of the fares cap formula.”
“Ministers claim this is to pay for a better railway. Passengers will regard that as a sick joke seeing as we have the most expensive and overcrowded railway in Europe.”
The ATOC failed to break down the increase figures into regulated fares, of which season tickets account for around 40% of all fares, and unregulated fares.
“The 6.2% figure is only an average rise, which means that some fares in certain areas could go up by 10% or more”, confirmed Mr James of Bad Credit Loans 4 You.
Under the current annual price cap formula enforced by the government, fares can only increase each January by the previous July’s Retail Price Index (RPI) inflation rate plus 1%.
The formula means that regulated fares will rise by an average of 5.8% in January 2011.
Commuters who use services run by the Southeastern train company have their own personal price formula due to extra investment in services.
Their RPI plus 3% means that regulated fares will rise by 7.8% even if they don’t use the new 140mph Javelin trains.
Further misery is ahead for passengers in January 2012 when the annual price rise formula changes to RPI plus 3% across the entire rail network.
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.”
Mr Roberts added; “More and more people are travelling by train and demand is expected to double in the coming decades so it is more important than ever that money is spent on providing better stations, more trains and faster services.”
“Money invested through fares has helped to bring about the record levels of customer satisfaction and punctuality on the railways today.”
“But, in the longer term we need reform which drives down the cost of the railways by relying more heavily on the innovation and resources of the private sector to give passengers a better service and taxpayers better value for money.”
Mr James of Bad Credit Loans 4 You added; “Britain’s roads will continue to become clogged with motorists until public transport costs are made more affordable to the average passenger.”
“More people are deciding to take holiday’s within the UK and train travel is the perfect way to get to your destination, but people need bad credit holiday loans to pay for the fares.”
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
For help, phone 0800 011 4503 or visit
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Notes for Editor:
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Loans 4 You of London Ltd
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Tel: 0800 011 4503
Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
