Crowded rail users face price hikes

Parliament's spending watchdog has warned that rail passengers are facing above-inflation fare rises despite continuing overcrowding on many services.

Train fare increases were as high as 20 per cent last year, the report from the National Audit Office (NAO) said.

Many passengers, particularly on routes serving London will face increased crowding at peak periods until plans to increase capacity - including 1,300 new carriages - can be carried out, the NAO added.

The report said that under the management of the Department for Transport, the process for awarding passenger rail franchises in England and Wales had delivered better value for money, with subsidies expected to fall.

The NAO said increased passenger numbers and a rise in the length of journeys taken was expected to result in a turnaround from a subsidy from the taxpayer of £811m in 2006/7 to £326m in 2011/12.

The report said the department's contract terms should improve the security, reliability, accessibility and quality of passenger rail services on the eight franchises it let between 2005 and 2007, but there was a risk that overcrowding and fare increases may offset any improvements to passenger satisfaction.

NAO head Tim Burr said: "Taxpayers and passengers should benefit from changes made to the franchising process for passenger rail services.

"The Department for Transport has contracted to save the taxpayer money while improving service quality, but it will need to see that capacity increases are well-managed and timely if passengers are to expect less crowded and more reliable journeys."

Commenting on the report, Commons public accounts committee chairman Edward Leigh said: "It's good that the Department for Transport's approach to the passenger rail franchising process since 2006 has produced better value for money for the taxpayer. And subsidies are projected to fall.

"But the risk is that a prolonged economic downturn will lead to their falling by less than expected.

"However, travelling by rail is still too often an unpleasant experience. The news that fares are likely to rise above inflation in these difficult times will infuriate many passengers who have no alternative but to travel day after day on packed trains."

A Department for Transport spokesman said: "We welcome the NAO's findings that the eight franchises they examined have reduced the burden on taxpayers while also securing improvements for passengers. We will study the findings and recommendations in detail.

"Rail has seen record levels of growth in the last decade and our priority is to address both current and future passenger growth. That is why over £10 billion is being invested to tackle the crowding problems currently experienced by passengers.

"Our plans will ensure that the rail network can cope with more than 20 per cent growth by 2014, on a network which will be even safer and more reliable."