Rail fares to be frozen in England next year

The government has announced that rail fares in England will be frozen next year for the first time in 30 years.

The freeze until March 2027 will apply to regulated fares, including season tickets and off-peak returns.

The last wage increase in March 2025 was 4.6%. Rail fares are traditionally increased in January based on the retail price index (RPI) July rate + 1%; but this formula has not always been followed.

The announcement comes just days before the Chancellor sets out the government’s financial plans in the budget on Wednesday; Rachel Reeves stated that reducing living costs will be a main focus.

But it is also widely expected that the Chancellor will raise taxes to help fill the multi-billion pound gap in his spending plans.

The government said the aim of freezing rail fares was to “directly limit inflation” by keeping “a key component of daily costs” low.

Since 2021, the annual increase has come in March instead of January.

A government source acknowledged that unregulated charges could still rise but insisted they generally track regulated charges.

Unregulated charges increased by 5.5% per year to March 2025; this was 1.1% above regulated wages; There was a total increase of 5.1% in railway fares during that period.

The Rail Delivery Group, a representative body of the UK’s rail operators, said the freeze would be “good news for customers”.

“We want our railways to thrive, so we are committed to working with the government to ensure upcoming rail reforms deliver real benefits for customers,” a spokesman said.

Since 1996, the government has regulated some train fares following the privatization of British Rail.

The freeze marks the first point at which wages have been frozen since then, despite periods when price increases were below the PPI and a decline in prices following the financial crash of 2010.

In England, Wales and Scotland around 45% of rail fares are regulated by the government; but ice cream is only relevant for travel in the UK. The announcement also applies only to services operated by UK-based train operating companies.

Regulated fares include season tickets covering most suburban routes, some off-peak return tickets for long-distance journeys and flexible tickets for travel in and around major cities.

Train operators are free to set prices for unregulated fares, but prices often increase by similar amounts.

The government estimates the move will save passengers traveling on more expensive routes more than £300.

The chancellor said the freeze was introduced to help ease the cost of living and “make going to work, school or visiting friends and family that little bit easier”.

Transport Secretary Heidi Alexander said it was part of “wider plans to rebuild Great British Railways”.

Great British Railways is a public enterprise in the process of being established and government plans to bring parts of the railway system into public ownership.

The government said it would take over the operation and management of the tracks and trains, “ending years of fragmentation, raising standards for passengers and making travel easier and better value for money”.

The government said part of its plans for the new body was to “gradually move away from general annual increases”.

Labor said under the previous Tory government passengers faced “relentless” fare increases every year.

But shadow transport minister Richard Holden said: “In government the Conservatives have kept fares on track with below-inflation increases and have consistently called for no further rises to protect hard-working passengers.”