Relief for rail passengers as fare freeze in England announced for 2026 | Rail fares

The government’s announcement that rail fares in England will not increase in 2026 surprised passengers, with fares frozen for the first time in 30 years.

Chancellor Rachel Reeves will confirm a wage freeze in this week’s budget, a move designed to limit inflation, ease living costs and boost economic growth.

Reeves and Prime Minister Keir Starmer hope measures such as a rail fare freeze and a support package for energy bills will help cushion the political fallout of expected tax rises.

Starmer returned from the G20 summit in Johannesburg on Saturday night to put the finishing touches on the budget announcement that senior government ministers expect will determine his and Rachel Reeves’ political future.

“I want the budget to focus on growth and stability, the two pillars that are really important,” the Prime Minister told reporters in South Africa.

Reeves will announce on Wednesday which taxes he has decided to raise to tackle an estimated £20 billion deficit in the government’s finances.

It is expected to raise around £7.5 billion by freezing income tax thresholds, and a further few billion through a series of smaller revenue-raising actions such as scrapping tax benefits on salary sacrifice pensions and taxing electric vehicles.

With criticism of Starmer’s leadership becoming louder in recent weeks, the prime minister knows he needs to get a good response from markets and consumers to survive until the next election, but told reporters this weekend he expects to remain in office until 2034.

The prime minister and chancellor are hoping to gain some credit for consumer-friendly proposals such as a rail fare freeze, as ministers brace for a negative reaction from voters to expected tax rises.

Transport Minister Heidi Alexander said there would be an absolute freeze on regulated fares next year, rather than a feared rise of at least 4.8% in fares based on the July RPI inflation rate.

The government said the move would save passengers more than £300 a year on expensive routes.

Fares directly controlled by the government include season tickets, peak returns for commuters and off-peak returns between major cities; This equates to more than a billion passenger journeys a year in the UK.

Train companies may still increase other fares, such as advance tickets or first-class seats, but all operators will be under state control by the end of 2027 under plans to nationalize Great British Railways.

Regulated fares in England have increased by around 64% since 2010, and transport costs account for around 12% of household spending.

Reeves said next week’s budget would prioritize reducing NHS waiting lists and the national debt, as well as reducing the cost of living.

He said: “That’s why we’re choosing to freeze rail fares for the first time in 30 years, which will ease the pressure on household finances and make getting to work, school or visiting friends and family a little easier.”

Alexander said: “We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money. This is part of our wider plans to rebuild Great British Railways that the public can be proud of and trust.”

A typical traveler working in an office three days a week and traveling on flexible season tickets will save £315 a year from Milton Keynes to London, or £57 a year from Bradford to Leeds. A traditional full-time commuter from Canterbury to the capital could see their annual season ticket rise by more than £400 to £8,929.

The announcement was welcomed by public transit advocates; Many compared the freeze on fuel duty for motorists since 2010 to the rapid increase in rail fares.

Ben Plowden, chief executive of the Campaign for Better Transport, said: “We know cost is the number one concern for people looking to travel by train.

“This will enable more people to choose rail, reducing congestion on our roads, benefiting the economy and helping the environment. It’s a positive sign that affordability for passengers is being given the high priority it deserves.”

Train drivers’ union Aslef said it was “the right decision to help our railway grow”.

Outgoing general secretary Mick Whelan said: “After 14 years of the Conservatives depriving people of our railways, we are delighted that this Labor government is helping people get to and from work and travel for pleasure.”

The announcement will provide some relief to commuters and those dismayed by Labour’s initial decision on fares in government. In last year’s budget, accompanying documents revealed that wages would increase by 1% or 4.6% more than the RPI in March this year.

The previous two years had seen even higher increases of 5.9 per cent and 4.9 per cent under the Conservative government; but while inflation was rising rapidly, it was well below the PPI.

Decisions on wages in Scotland and Wales are being made by the devolved governments and have not yet been announced.