Flexible rail ticket plan to lure back commuters
By Oliver Gill
The Daily Telegraph - Business
16 Apr 2021
New ‘carnet passes’ will allow passengers up to five return journeys a month at 15pc discount to peak fares
MINISTERS and rail chiefs are putting the finishing touches to a new system of flexible rail season tickets designed to entice commuters back to city centres as they split their time between home and the office.
Concerns over costs mean the discounts on offer will be much less generous than for a traditional season ticket, with mandarins attempting to spare the taxpayer from further expense after handing over £10bn in subsidies to keep services running, The Daily Telegraph can reveal. On key routes, it would be cheaper to buy a standard monthly season ticket than travel three days a week using the flexible system.
Under the plan, rail firms will roll out French-style “carnet tickets”, which will allow passengers to complete five return journeys in any single month at a discount of 15pc to peak fares.
A passenger planning to commute for one day a week for a month could buy one of these tickets under the proposals. If a commuter wanted to travel in twice or three times a week, they would buy additional carnets. The scheme will be rolled out in June.
However, it is likely to disappoint some workers planning a flexible future because savings are significantly less than for traditional season tickets.
A traveller doing a two-day-a-week commute would pay only 30pc less than if they bought a five-day, full-month season ticket – even though they would only travel for 10 days a month.
The cost of travelling three days a week on carnet tickets would actually be more expensive than buying a standard monthly season ticket on typical routes. For example, based on a £45.60 standard fare between London and Brighton, each carnet will cost £193.80.
Buying three carnets to travel three days a week over the month would cost £581.40 – considerably more than a monthly ticket that costs £414.40.
Although some operators already offer their own individual carnet-style systems, this would be the first industry-wide scheme as part of an attempt to revolutionise the commute.
Grant Shapps, the Transport Secretary, confirmed plans to cancel rail franchising last September. The move inverted the privatised model that was introduced by John Major more than a quarter of a century ago. Instead of operators collecting fares, the Government now pays them a fee for running rail services with the proceeds from ticket sales going to the Exchequer.
The switch means that taxpayers, rather than rail operators, are now on the hook for discounted rail fares.
Officials have forecast that the carnet ticket will have no effect on public finances as the cost of the discount is compensated by an associated increase in the number of people that will be encouraged to return to the railways.
A spokesman for the Rail Delivery Group, which represents operators, said: “The pandemic has accelerated the trend towards home working and rail fares need to reflect this so we’re working with the Government to introduce new flexible tickets as soon as possible.
“Wider changes to fares are still urgently needed so that instead of adding extra ticket types for people to choose from, more commuters can benefit from tap-in, tap-out capping and automatically get the best deal at the end of the week or month.”
The roll out of the flexible season tickets is expected to coincide with the Government relaxing its message to work from home, scheduled for June 21.
A spokesman for the Government said: “We are committed to providing a more flexible, modern ticketing system for passengers. That is why we are looking at ways to make this a reality for commuters, including flexible season tickets. We’ll set out further details in due course.”