The UK government has unveiled plans to freeze rail fares in England until March 2027, a landmark move announced just days prior to the Chancellor's budget reveal. This freeze aims to ease the cost of living by holding down a significant component of everyday expenses.
Traditionally, rail fares have been adjusted in January based on the previous July's Retail Price Index (RPI) plus an additional 1%. However, the fare increases have been postponed to March since 2021. The most recent hike in March 2025 saw a 4.6% rise.
The freeze applies to regulated fares, which cover season tickets and some off-peak return options. Despite the freeze, unregulated fares may still experience increases, though these changes often align with regulated rates.
The Rail Delivery Group, representing UK rail operators, hailed the freeze as beneficial for passengers and expressed a commitment to working alongside the government on forthcoming railway reforms.
Since the privatization of British Rail in 1996, the government has regulated certain fares, covering approximately 45% in England, Wales, and Scotland. However, this freeze is exclusive to services operated by English train companies.
Chancellor's Office has stated that the fare freeze will help mitigate cost of living pressures, facilitating easier travel for work, education, and social visits. Transport Secretary Heidi Alexander indicated that this measure is part of broader initiatives to revamp Great British Railways, a new public body aimed at restructuring parts of the railway system into public ownership.
Labour has criticized the prior government's track record of fare hikes, although former shadow transport secretary Richard Holden argued that the Conservative government maintained fares below inflation and opposed any further increases.