Rail faresThe Prime Minister has announced that regulated rail fares will rise by an average of 4.2% next January.

Rail fare price increases will be capped for the next two years, the Government has announced.
Passengers were facing average increases on regulated fares – such as season tickets and long-distance off-peak journeys – of 6.2%, using the Retail Prices Index (RPI) plus 3% method of calculation.

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But the Prime Minister said the increase for the next two years will be RPI plus 1%, meaning the average increase will be 4.2%.

That formula will also apply to London's underground and bus services. They had been due to rise by RPI plus 2%.

The fare increase is pegged to July's RPI inflation figure, which this year came in at 3.2%.

There was widespread anger when it appeared that the 6.2% increase might be allowed to stand, with commuters complaining that it was another blow in a time of austerity.

The Department for Transport said that it is planning to cap the increase at RPI plus 1% from January 2015.

It says the change will be funded by savings from its budget.

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