Fares policy (3)

Meeting: 
MQT on 2015-11-18
Session date: 
November 18, 2015
Reference: 
2015/3703
Question By: 
Darren Johnson
Organisation: 
City Hall Greens
Asked Of: 
The Mayor
Category: 

Question

What would the cost be to TfL in (a) 2016/17 and (b) the period from January 2017 up to December 2020 of freezing bus fares in cash terms rather than the current plan of increasing them by CPI+1?

Answer

Answer for Fares policy (3)

Answer for Fares policy (3)

Answered By: 
The Mayor

Fares will increase by RPI only in January 2016 and the TfL Business Plan assumes increases of RPI+1 each January thereafter.

If fares were frozen at their current levels to the end of 2020, this would reduce TfL fares income by £19 million in the 2016/17 financial year and by £520 million from 2017 to 2020.

The relatively small loss in 2016/17 is because only the period between January 2017 until March 2017 would be affected since an 'RPI only' fares increase has already been announced for January 2016.