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In a move impacting commuters across England, the government has announced a freeze on rail fares for the upcoming year, marking the first such measure in three decades.
This freeze, set to remain in effect until March 2027, will apply to regulated fares, encompassing season tickets and off-peak return options.
The most recent fare adjustment, implemented in March 2025, saw an increase of 4.6%.
Historically, rail fares have typically increased in January, based on the Retail Price Index (RPI) for July plus 1%, though this formula has not always been strictly adhered to.
The timing of this announcement is notable, arriving just days before the Chancellor’s Budget presentation, where cost-of-living concerns are expected to be a central theme.
Government officials have also stated that this measure aims to “directly limit inflation” by curbing “a major component of everyday costs”.
Since 2021, annual fare increases have been implemented in March rather than January.
While a government source acknowledged the possibility of unregulated fares still rising, they maintained that these typically follow the pattern of regulated fares.
In the year leading up to March 2025, unregulated fares rose by 5.5%, exceeding regulated fares by 1.1%, resulting in an overall increase of 5.1% in rail fares.
The Rail Delivery Group, representing rail operators in the UK, welcomed the freeze as “good news for customers”.
A spokesperson stated, “We want our railways to thrive, that’s why we’re committed to working with government to ensure upcoming railway reforms deliver real benefits for customers.”
Government regulation of some train fares dates back to the privatisation of British Rail in 1996.
This freeze marks the first instance of fares being held steady since then, although there have been periods with price increases below RPI, and a price dip after the 2010 financial crisis.
Approximately 45% of rail fares in England, Wales, and Scotland are regulated by the government, but this freeze is specific to travel within England and services operated by England-based train companies.
Regulated fares encompass season tickets for most commuter routes, certain off-peak return tickets for longer journeys, and flexible tickets for travel within and around major cities.
Train operators retain the freedom to set prices for unregulated fares, though these typically follow similar trends.
Government estimates suggest that this freeze will save commuters on more expensive routes over £300.
Chancellor Rachel Reeves stated that the freeze is aimed at alleviating cost-of-living pressures and making “travelling to work, school or to visit friends and family that bit easier”.
Transport Secretary Heidi Alexander highlighted the freeze as part of “wider plans to rebuild Great British Railways”.
Great British Railways, a public body currently being established, is a key component of the government’s initiative to bring elements of the railway system under public ownership.
The government has stated its intention to assume control over the operation and management of tracks and trains, “ending years of fragmentation, driving up standards for passengers, and making journeys easier and better value for money”.
The government has indicated that its plans for the new entity involve “gradually moving away from annual blanket increases”.
The Labour Party has criticized previous Conservative governments for subjecting passengers to “relentless” annual fare increases.
However, Shadow Transport Secretary Richard Holden countered that “In government, the Conservatives kept fares on the right track with below-inflation rises and consistently called for no further hikes to protect hard-working commuters.”
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