Fares and ticketing review
Discusses the importance of rail and announces changes to rail fares including flex and capping.
Recovery on track
Three and a half years ago, the two coalition partners came together to sort out the economy and pay off Britain바카라 사이트™s debts.
These were our overwhelming priorities for government.
It was a formidable challenge.
And the job is far from finished.
But we are turning a corner.
Confidence is returning to our economy.
The deficit has been cut by a third.
Manufacturing, construction, and service sectors are growing again.
Car sales are higher than they have been for five and a half years.
And 1.4 million jobs have been created in the private sector.
So despite inheriting the worst economic legacy of any government in recent memory바카라 사이트¦.
We are on track to meet our objectives바카라 사이트¦.
And keep our promises to the people of Britain.
Living standards
But while we do this, we also know how important it is to put more money into people바카라 사이트™s pockets.
This goes to the heart of what this government is about 바카라 사이트“ a government for hardworking people.
People have seen their living standards squeezed since the recession of 2008.
And this is something we are tackling head on.
Not with sticking plasters and quick fixes like our opponents want 바카라 사이트“ but major changes.
To really raise living standards in the long term you바카라 사이트™ve got to do some big things to your economy
Because just a one per cent rise in interest rates would increase the average family mortgage by £1,125.
You바카라 사이트™ve got to grow the economy so people can get well paid, decent jobs 바카라 사이트“ and we are.
And you바카라 사이트™ve got to cut people바카라 사이트™s taxes. And so far we바카라 사이트™ve cut income tax for 25 million people by raising their personal allowance.
Cutting the deficit. Growing the economy. Cutting people바카라 사이트™s taxes. Big things that will really drive living standards up in the long term.
Our opponents are trying to divorce the two issues.
As if living standards and the deficit weren바카라 사이트™t intrinsically linked.
But of course we all know: their policies are not a solution to lower living standards but the root cause of it.
Other measures
And of course once you바카라 사이트™ve taken the action we have, there are other things you can do to help too.
Because of our responsible stewardship of the economy, we바카라 사이트™ve been able to help families in a number of ways.
We바카라 사이트™ve frozen council tax.
We바카라 사이트™ve forced energy companies to put customers on the lowest tariff.
We바카라 사이트™re helping families with tax-free childcare.
But we want to do more.
And this autumn we바카라 사이트™re going to be introducing a number of other measures to help hardworking people.
Transport and cost of living
The first of these today (9 October 2013) covers rail fares.
As Transport Secretary, I바카라 사이트™m acutely aware that travel often accounts for a large chunk of people바카라 사이트™s weekly spend.
If transport costs rise, then savings have to be found elsewhere from the household budget.
So we바카라 사이트™ve maintained concessionary travel for older and disabled people.
We바카라 사이트™ve frozen fuel duty for the rest of this Parliament.
And we haven바카라 사이트™t increased the price of driving tests and MoTs since the general election.
Rail fares
We have already taken action on rail fares too.
Reducing average rises from three per cent to one per cent in real terms.
That means that over two years, someone commuting from Oxford to London will have saved £270.
Someone travelling in from Chelmsford £210 over 2 years.
All in all, it means a quarter of a million annual season ticket holders will, on average, have an extra £150 over two years in their pockets.
But the fact remains that for many families, apart from their home, a season ticket is the biggest bill they face.
A bill to use a service that can sometimes seem confusing and complicated.
So today we are going further with a series of measures to ease the burden on rail travellers
Flex
First, we are going to cap the rate at which train companies can increase fares.
The last government introduced something called 바카라 사이트˜flex바카라 사이트™ 바카라 사이트“ something that can be a huge back door hike on train travel.
Let me explain how it works.
In total, train companies are only allowed to increase fares on their commuter routes by 1 per cent each year.
But under 바카라 사이트˜flex바카라 사이트™ they are allowed to increase fares on specific routes by considerably more.
So in practice it can mean fares get cut on less popular commuter routes and they go up on more popular ones.
This was a policy brought in under the last government 바카라 사이트“ and one that has caused real pain for commuters year after year.
A policy that meant that in 2009, commuters travelling in to the capital from Bromley South saw their fares go up by an eye watering 11.5 per cent.
So today (9 October 2013) I am calling an end to these double-digit back door rises.
From now on, flex will be reduced significantly to 2 per cent.
A move that Passenger Focus has campaigned for effectively.
This will keep fares at more affordable levels.
Meaning people have a much clearer idea of what they can expect.
And preventing the large rises that we바카라 사이트™ve seen in the past.
We바카라 사이트™re taking this action because we know how hard-pressed rail users are.
They바카라 사이트™ve had to shoulder some of the cost for our essential rail modernisation programme 바카라 사이트“ without which the network would soon grind to a halt.
Yet most rail commuters do not have an alternative way of getting to work.
So it바카라 사이트™s right that as our economy recovers, we try and relieve some of the burden they bear.
This is of course just the start and we don바카라 사이트™t pretend it is the answer.
We remained as determined as ever to end the era of above inflation fares, as we tackle the £3.5 billion of inefficiencies inherited from the previous government.
Flexible ticketing
And it is just one of the things we are doing.
For the days of the man in the bowler hat waving goodbye to his family as he sets off on his daily journey on the 8.15 to Paddington are over.
That isn바카라 사이트™t the way the world works now.
So our rail fares shouldn바카라 사이트™t work like that either.
That is why we바카라 사이트™re trialling a new flexible ticketing system that will give rail commuters a better deal.
The trial is likely to include discounted tickets for those travelling at quieter periods at either end of the rush hour바카라 사이트¦.
And flexible season tickets to benefit people who don바카라 사이트™t work five days a week.
It is a trial I want to see rolled out on a wider basis.
Because part-time workers and those who sometimes work from home shouldn바카라 사이트™t have to pay the full price for season tickets.
And by harnessing smart ticketing technology, we can give passengers the service they need, when they need it바카라 사이트¦.
While reducing the cost of travel.
At the same time we바카라 사이트™ve ruled out proposals to charge premium fares at peak times.
A large majority of rail commuters don바카라 사이트™t choose to travel at the busiest times.
So it would be wrong to make them pay more for the privilege.
The coalition is investing record amounts to transform our railways.
This is helping to create the extra capacity we need.
Passenger demand has doubled in less than 20 years.
And it will continue to increase.
So it is vital we make full use of new technology and adopt a more flexible approach to ticketing.
By rolling out smart and flexible ticketing across the network, we can get more passengers on the railway바카라 사이트¦.
Make more efficient use of capacity and space바카라 사이트¦.
And so improve the customer experience.
Closing remarks
What I바카라 사이트™m announcing today (9 October 2013) is just the start of a government-wide programme to help hardworking people바카라 사이트¦.
And reduce the cost of living.
Getting behind everyone in this country who wants to work hard and get on in life.
Over the next few weeks, we will be announcing a number of initiatives to put money back in people바카라 사이트™s pockets.
The people of Britain have endured an incredibly difficult few years.
Most have had to make significant sacrifices.
Now, while we remain committed to the responsible and careful economic policies which have got us this far바카라 사이트¦.
We will also share the rewards of recovery.