Millions of commuters are set for a boost after the government said it will freeze rail fares for the first time in 30 years.
It comes as chancellor Rachel Reeves prepares to deliver her Autumn Budget amid expectations of tax rises.
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The Treasury said commuters on more expensive routes will save more than £300 per year.
Reeves said: “Next week at the Budget I’ll set out the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.
“That’s why we’re choosing to freeze rail fares for the first time in 30 years, which will ease the pressure on household finances and make travelling to work, school or to visit friends and family that bit easier.”
How much will rail fares cost?
Transport costs make up 12% of household spending, the Treasury said, so any reduction will be welcomed by commuters.
The freeze will apply to all regulated fares, including season tickets, peak returns for commuters and off-peak returns between major cities, benefitting more than a billion passenger journeys across England.
According to Treasury calculations, a typical commuter travelling to work three days a week using flexi-season tickets, will save £315 per year travelling from Milton Keynes to London, £173 per year from Woking to London and £57 per year for routes from Bradford to Leeds.
The Railways Bill being introduced in Parliament will also create Great British Railways (GBR), a new publicly owned company, that will run and manage the tracks and trains.
There are also plans to invest in tap in tap out and digital ticketing, alongside investing in superfast WiFi on the railway.
Transport Secretary Heidi Alexander said: “We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money.
“Commuters on more expensive routes will save more than £300 per year, meaning they keep more of their hard-earned cash.
“This is part of our wider plans to rebuild Great British Railways the public can be proud of and rely on.”
Will the rail fare freeze benefit consumers?
Ben Plowden, chief executive of the Campaign for Better Transport, welcomed the freeze.
He said: “We know that cost is the number one concern for people wanting to travel by train, so it is very welcome that fares will be frozen next year as we have been calling for.
“As well as helping households with the cost of living, this will enable more people to choose rail, reducing traffic on our roads, benefitting the economy, helping the environment, and connecting communities across the country.”
But the benefits of the freeze really depend on where you live and how much you use the railways.
Not all types of tickets are regulated either. For example, advance purchase tickets, first-class fares and some flexible tickets are set by the operating companies.
The freeze also isn’t much use if you commute on the London Underground. Transport for London fares are set by the Mayor of London so commuters in the capital may not feel the full benefits, especially as prices already rose by 4.6% in March.
Commuters will also be eagerly awaiting the Budget on 26 November as tax changes such has frozen thresholds or new wealth taxes may well offset any savings from cheaper rail travel.
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