Rail fares to rise 1% next year after prices far outstrip wage rises

The government has promised to end "inflation-busting" rail fare rises with a one per cent increase next year – but a union-backed study says ticket prices have rocketed at three times the rate of wages over the past five years.

The BBC says regulated rail fares are to rise by one per cent in January 2016, after the government said they would go up by no more than the Retail Prices Index (RPI) for July, a measure of inflation in the price of goods and services.

The rise will be the smallest New Year fare increase since 2010, says the Daily Telegraph. It applies to regulated fares, which make up about half of all tickets sold and include season tickets and day returns.

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Rail minister Claire Perry told the news agency PA she was putting an end to "inflation-busting" price hikes. She said: "Thanks to our plans, next year's fares will see some of the lowest increases for decades."

But the announcement came after trade union body the TUC released data analysis which it said showed that ticket prices had risen by 25 per cent between 2010 and 2015 – almost three times as fast as the national average wage, which is up nine per cent.

The government plans to cap rail fare rises over the next five years, making up the shortfall with some £700m of taxpayers' money. The TUC's report says huge savings could be made if the railways were instead re-nationalised.

A campaign group, Action For Rail, backed by some of Britain's biggest trade unions is holding a protest tonight, says The Guardian. Campaigners will hand out postcards demanding re-nationalisation to commuters in London tonight.

Writing in The Times today, Perry announced plans to pay commuters immediate refunds for delays. Instead of filling in forms and waiting, registered customers will have payments sent to their bank accounts or travelcards automatically.