Estimated costs of reversing fare increases

Meeting: 
MQT on 2015-01-21
Session date: 
January 21, 2015
Reference: 
2015/0010
Question By: 
Caroline Pidgeon
Organisation: 
Liberal Democrats
Asked Of: 
The Mayor
Category: 

Question

Please provide separate figures for the estimated cost of reversing the increase in price of:

The Zones 1-6 off-peak Day Travelcard (child)

The Zones 1-9 off-peak Day Travelcard (child)

The effective increase in the off-peak PAYG Cap for Zones 1-4

The effective increase in the off-peak PAYG Cap for Zones 1-5

The effective increase in the off-peak PAYG Cap for Zones 1-6

Answer

Answer for Estimated costs of reversing fare increases

Answer for Estimated costs of reversing fare increases

Answered By: 
The Mayor

This year, I have frozen fares in real terms. Peak and off-peak fares have gone up in line with inflation and season tickets have risen just below inflation. New lower all-day caps will save 200,000 people money every day.

There was a clear objective in this year's fares package to meet the needs of the many customers who now have flexible working patterns. I also had to ensure that TfL continues to have enough fare revenue to keep improving London's transport given very rapid population growth (which is running at one full Tube train of people arriving every three days).

To pay for the part-time worker changes, the price of some fares which are predominantly designed for very infrequent users has gone up. TfL will lose £30 million a year in revenue as a result of the changes to daily caps that will benefit part-time workers.

Child off-peak Day Travelcards

The great majority of children in London now have Zipcards and any young person without one should get one.  Zipcards allow free travel all day on buses, trams and on the Tube, cap off-peak child fares at £1.50 per day, a rate that has been frozen since last year. Under-11s travel free on all services (apart from the cable car).

TfL is looking to recover £20 million a year from increases in some paper Travelcard prices. However, TfL is not anticipating significant increases in revenue from the child off-peak Day Travelcard price changes. The child off-peak Day Travelcard has been moved to the same half fare basis as all of TfL's other printed tickets to minimise the scope for fraud and misuse and to encourage maximum use of the Zipcards and other concessions.

Off-peak caps

TfL is looking to recover £10 million a year from withdrawing PAYG off-peak caps: this amount is split broadly equally between zones 1-4, 1-5 and 1-6. 

Around 25,000 people a day will pay more as a result of the changes to the off-peak caps, of which 5,000 people will pay more than £2 extra. The majority of people paying more - 60 per cent - are people travelling from stations controlled by Train Operating Companies (TOC). The fares they set are out of my control but as National Rail fares are higher, users of these services pay more and hit the daily fares cap earlier than on our services. The great fares inequality today is between those Londoners whose fares are set by TOCs - who generally charge far higher fares - and those travelling on TfL services.