MK Rail Users

Under the direction of the Government, through the auspices of the Department for Transport, London Midland, which provides rail services to MK commuters and has been running services at an unacceptably poor standard for many months, are duty bound within their franchise agreement to introduce massive fare rises in January 2010 for many commuters.

In the past fare rises have been regulated by the Government, and pegged at no more than RPI + 1%. With the recession, there was even the possibility of fares falling in January 2010 when the next round of fare rises take effect.

Now MK Rail Users have discovered that London Midland, in common with other train operating companies, has placed orders for new equipment and have the agreement of Government to implement a new way of charging fares called Demand Management Regulation.

What does this mean? The system is like the Oyster card in use in London, and allows more flexible charging patterns rather than fixed price season tickets. Now the rail companies can charge more in the peak time depending on the actual time Commuters travel. MK Rail Users have discovered that the charge for travelling at the height of peak time will be allowed to rise as high as RPI + 5% + 1%.

The peak travelling period stretches from 04:00 to 10:00 and this mechanism is designed to persuade people to travel in the ‘shoulders’ of the peak rather than at the busiest times. The train operating companies will be allowed to substantially increase fares at the height of the peak, and this will not be in breach of their franchise agreement as long as, on a basket of fares, the overall rise is no more than RPI + 1%. This does mean that those who can travel at the earlier or later times may receive fare reductions.

Philip Lawton, Chair of MK Rail Users said: “If people had more control over their working hours, it would be understandable to try and persuade them to change travelling habits. By encouraging commuters to spread their journeys by the use of higher fares in the busiest part of the morning peak, overcrowding could be reduced. But the vast majority of people working in London have no choice about their working hours - they have to staff their offices from 9 to 5 and cannot change that.”

“These people will be absolutely horrified when the price increases are implemented in January. In 2010 particularly this will create even greater hardship as thousands receive no pay increase and many are having their salaries reduced as the recession bites.”

“MK Rail Users is astonished that this change has been decided and is being implemented by stealth without consultation with customers. We will be lobbying hard to prevent this being introduced, not only now, at this time of economic crisis, but also at any time in the future.”

Demand Management Regulation

Commuters to Face Large Fare Increases