MD3318 March 2025 fare changes

1.1.    The Mayor has previously frozen Transport for London (TfL) fares, keeping them at 2016 levels until 2021. The Mayor increased TfL fares for the first time in 2021, and then subsequently in 2022 and 2023 due to the conditions attached to government funding settlements, made within the extremely financially challenging circumstances arising from the COVID-19 pandemic. In 2024, the Mayor again froze TfL fares. Collectively, these decisions mean that TfL fares are currently 14 per cent lower than if they had risen in line with national rail (NR) fares throughout that period.
1.2.    Should the Mayor approve this decision, in March 2025 TfL fares will increase, on average, by 3.6 per cent. Bus and tram fares will be frozen for the second year in a row. On the Tube, and other rail services in London where Tube fares apply, pay as you go (PAYG) single fares will increase (in line with NR fares policy) by 4.6 per cent. 
1.3.    Travelcard prices, and the cost of the multi-modal PAYG caps, are set in agreement with the train operating companies (TOCs). These fares will increase from March 2025 (in line with NR fares policy, as announced by the government on 30 October 2024) by 4.6 per cent. The TOCs are required, by the Department for Transport (DfT), to increase their regulated fares by no more than 4.6 per cent on average. 
1.4.    Subject to the Mayor’s approval, this fare revision will be implemented on 2 March 2025.
1.5.    Public transport usage has been affected by changes in travel patterns since the COVID-19 pandemic. This has impacted the revenue collected by TfL. Passenger levels have been recovering and are currently around 93 per cent of pre-pandemic levels. 
1.6.    The Annex to this Decision includes summary fare tables. More detailed fares tables are set out in the Schedules attached to the proposed Mayoral Direction to TfL, included at Appendix 1. 
Bus and tram fares
1.7.    In March 2025, bus and tram fares will be frozen (see table 1.1).
1.8.    The Hopper fare will continue to permit unlimited free transfers within an hour of a first-paid-for bus or tram PAYG journey.
1.9.    The adult PAYG single fare will remain £1.75. The daily bus and tram cap will stay at £5.25 – equal to the price of three single fares. The 7-Day Bus & Tram Pass will stay at £24.70. 
1.10.    The half-adult and child bus and tram fares will remain the same price.

Table 1.1: Bus and tram fares in March 2025

Tube, DLR, Elizabeth Line and Overground fares in zones 1-6
1.11.    On the Tube, and other TfL rail services where Tube fares apply (as above), PAYG single fares will increase overall by 4.6 per cent (see table 1.2). PAYG is used for around 75 per cent of journeys made on Tube and TfL rail services. 
1.12.    The child peak London Underground (LU) PAYG fare is set at half the minimum adult peak fare.
1.13.    The flat child off-peak PAYG fare on services, where NR fares apply, increases by 5p to 95p; the off-peak child PAYG cap increases to £1.90. 

Table 1.2: Adult PAYG fares on TfL rail services increases in March 2025

Travelcard season tickets in Zones 1-6
1.14.    Travelcard season ticket prices will increase as shown in Table 1.3, below, and Table A3 in the Annex. The prices for all travelcards will increase by 4.6 per cent.
1.15.    This reflects NR fares policy, as provided in DfT guidance to TOCs. These prices also apply to the equivalent seven-day PAYG caps.
1.16.    Monthly travelcard season prices are calculated as 3.84 times the seven-day price (rounded up to the closest 10p multiple). Annual travelcard season prices are calculated as 40 times the seven-day price. 

Table 1.3: Travelcard seasons – Seven-day travelcard prices

LU cash fares in zones 1-6
1.17.    Cash fares (also known as paper tickets) for zones 1-6 are set at £7.00 for a single ticket. Child cash fares for those aged 11 to 15 remain at half the adult rate. Accompanied under-11s will continue to travel for free. Fewer than one per cent of Tube journeys are now made with cash fares.
1.18.    Cash fares in zones 1-6 on services where NR fares apply will increase overall by 4.6 per cent, reflecting NR fares policy. Full details are set out in the Annex Table A2.
One-day PAYG price caps in zones 1-6
1.19.    Tables 1.4.1 and 1.4.2, below, set out the PAYG caps and day travelcard prices.
1.20.    The all-day PAYG caps are set by agreement with the TOCs, at 20 per cent of seven-day travelcard prices. The caps increase by between 40p and 70p in proportion to the increases in travelcard season ticket prices. These are rising overall by 4.6 per cent, reflecting the NR fare policy.

Table 1.4.1: All-day PAYG caps in 2024 and 2025

Day travelcards
1.21.    The prices of both the zones 1-6 off-peak day travelcard, and the zones 1-4 anytime day travelcard, will increase by 70p to £16.60. The zones 1-6 all-day travelcard ticket price will increase by £1.00 to £23.60. These fares are set in agreement with TOCs and are increasing overall by 4.6 per cent, reflecting the NR fare policy. 

Table 1.4.2: Day travelcard tickets in 2024 and 2025

Concessions and discounts on TfL rail services
1.22.    For under-16s, all-day travelcard prices and peak PAYG daily caps are set at half the adult rate; and increase in line with adult prices. The under-16s off-peak cap, available through the Zip Card, increases by 10p to £1.90. These fares are set in agreement with TOCs, and are increasing overall by 4.6 per cent, reflecting the NR fare policy.
1.23.    Accompanied under-11s continue to travel free on all TfL services, and on TOC services, provided a valid Zip Card is held.
1.24.    All concessions will remain, with a full list set out in section 3.14, below.
Tube fares for travel beyond zone 6
1.25.    Beyond the Greater London area, PAYG and cash single fares involving zones 7 to 9, applying on the Tube and certain rail services, will increase overall by 4.6 per cent, reflecting the NR fare policy. Full details are given in table A4 in the Annex.
1.26.    Travelcard prices and the associated PAYG caps with coverage in zones 7 to 9 increase overall by 4.6 per cent, reflecting the NR fare policy. Full details are given in tables A6 and A7 in the Annex.
Fares on services transferred to TfL in May 2015 
1.27.    On the Greater Anglia services to Liverpool Street, transferred to TfL in May 2015, NR cash single fares and point-to-point season prices were retained as part of the transfer arrangements. These NR fares will increase overall by 4.6 per cent, reflecting the NR fare policy. This change will be on services between Liverpool Street station and Enfield Town, Cheshunt (via Seven Sisters) and Chingford; and services between Romford and Upminster.
Fares on services transferred to TfL in May 2018    
1.28.    On the Great Western and Heathrow Connect services transferred to TfL in May 2018, NR cash single fares and point-to-point season prices were retained as part of the transfer arrangements reached over 10 years ago between DfT and TfL. These NR fares will increase overall by 4.6 per cent, reflecting the NR fare policy. This change will be made to services that leave Paddington and terminate at Hayes and Harlington; and services between Paddington and the Heathrow terminal stations.
1.29.    The TfL-set supplements to the Heathrow fares will increase by 4.6 per cent.
Fares on the Elizabeth line service to Reading 
1.30.    Since 15 December 2019, an Elizabeth line service has run between Reading and Paddington. Under agreements reached over 10 years ago between the DfT and TfL, common fares will apply on the TOC and TfL services. On these services, NR cash single fares and point-to-point season prices were retained as part of the transfer arrangements. These NR fares will increase overall by 4.6, per cent reflecting the NR fare policy.
IFS Cloud Cable Car
1.31.    The one-way adult fare to ride on the IFS Cloud Cable Car will increase to £7.00. The child fare will remain at 50 per cent of the adult fare. 
1.32.    The carnet ticket price will increase by 20p to £1.90 per journey. This will continue to support local and regular users of the service.

Table 1.5: IFS Cloud Cable Car fares in 2024 and 2025

2.1.    The Mayor is under a statutory duty to develop and implement policies to promote and encourage the safe, integrated, efficient and economic transport facilities and services to, from and within Greater London. It is proposed the Mayor freeze all TfL bus and tram fares, and increase fares on all other rail services in London where Tube fares apply, by 4.6 per cent; and continues his protection of all TfL concessions.
2.2.    The Mayor wants to ensure any that fares policy: keeps fares as affordable as possible; and is fair and equitable for customers. The fares policy and decision must also ensure that: TfL continues to be run in a manner that is financially sustainable (where its operating income is sufficient to cover its operating costs); and sufficient government funding is secured for required capital investment and major capital projects. This enables TfL to deliver on other priorities that underpin its Business Plan, and that support the delivery of the Mayor’s Transport Strategy. 
2.3.    Taking into account anticipated levels of passenger demand, and the outcome of the recent government spending review, the fares revision proposed in this Mayoral Decision is considered the most effective way to deliver on the matters identified in paragraph 2.2, above.
 

3.1.    Under section 149 of the Equality Act 2010,the Mayor and TfL, as public authorities, are subject to a public sector equality duty, and must have ‘due regard’ to the need to: eliminate unlawful discrimination, harassment and victimisation, and any other conduct that is prohibited by or under the Act; and advance equality of opportunity, and foster good relations, between people who share a relevant protected characteristic and those who do not. Relevant protected characteristics under the Equality Act are age, disability, gender reassignment, marriage and civil partnership, race, religion or belief, sex, and sexual orientation.
3.2.    The duty above applies to the Mayor’s duty to direct TfL as to the general level and structure of fares under the Greater London Authority Act 1999 (GLA Act).
3.3.    Amongst the protected groups, TfL has identified seven groups of Londoners (highlighted below) who typically face barriers to public transport use. The cost of fares is a key issue for these groups. Below is an assessment of the potential impact of this decision on those groups.
3.4.    Londoners with protected characteristics are likely to be affected by increases in fares. Statistically they are more likely to be on low incomes. 
3.5.    Black, Asian and Minority Ethnic Londoners are more likely to: live in low-income households; cite affordability as a barrier to transport; and use buses rather than the Tube.  The freezing of bus and tram fares should reduce barriers to travel for Black, Asian and Minority Ethnic Londoners, as it will provide a real-terms reduction in fares. The proposed increase in tube and rail fares will likely have a negative impact on those using or reliant on those services.
3.6.    Women are more likely to be the primary carer at home, so are less likely to be in full-time employment; and women more frequently cite affordability as a barrier to transport. Women are also more likely to use buses than the Tube.  The freezing of bus and tram fares should reduce barriers to travel for women, as it will provide a real-terms reduction in fares. The proposed increase in tube and rail fares will likely have a negative impact on those using or reliant on those services.
3.7.    Older Londoners are more likely to be retired, and many live on low incomes. The 60+ concession, and the Freedom Pass available to older people, mean that the proposed March 2025 fares are likely to have limited impacts on older residents living in London. Under these concessionary schemes, all Londoners aged 60 or over are eligible for free travel on all TfL modes, and most NR services in London, after 9am on weekdays, and at all times at weekends and on bank holidays. This concession will remain unchanged by this fares revision. For those who need to travel before 9am on weekdays, the freezing of bus and tram fares should reduce barriers to travel, as it will provide a real-terms reduction in fares. The proposed increase in tube and rail fares is likely to have a negative impact on older Londoners using or reliant on those services before 9am on weekdays.
3.8.    Disabled Londoners are more likely to live in low-income households. One in three London families with a disabled child live in poverty.  One of the reasons for this is the higher costs of supporting a disabled child. In some cases, it can be three times more expensive to bring up a child with an impairment.  Carers are also likely to experience financial hardships as a knock-on effect of the need to take lower-paid and part-time work.
3.9.    The Disabled Person’s Freedom Pass means that the proposed March 2025 fares will not impact some disabled people, as they can travel for free at all times with this concession. Parents of disabled children, and some disabled Londoners who are not eligible for a Freedom Pass, may have their income impacted by barriers to employment – but will not benefit from the Freedom Pass concession. The eligibility criteria for the pass can mean that applications from some disabled people (for example, adults with learning difficulties) are not successful. The criteria for obtaining a pass are stricter than those for qualifying as disabled under the Equality Act 2010. Some individuals who qualify as disabled under the Equality Act 2010 will not be eligible for a Disabled Person’s Freedom Pass. This group may have lower incomes but not benefit from travel concessions. The freezing of bus and tram fares should reduce barriers to travel for these groups, as it will provide a real-terms reduction in fares. The proposed increase tube and rail fares will likely have a negative impact on those using or reliant on those services.
3.10.    Younger Londoners are more likely to be from a Black, Asian or Minority Ethnic community, and therefore more likely to experience the financial barriers discussed above.  The Zip Card concession – which allows free or discounted travel – and the freezing of bus and tram fares will limit the negative impact of the proposed March 2025 fare changes on younger Londoners.
3.11.    Londoners on low incomes tend to be women; older, Black, Asian, Minority Ethnic and disabled people; and those not in work. A low income largely reflects working status, though the underlying causes may be tied to the cost of housing, childcare and transport; access to education; qualifications; and health. Among children living in poverty, more of them are part of low-income working families than workless families.  London has the highest poverty rates in the UK across all age groups.  The freezing of TfL bus and tram fares should reduce barriers to travel for low-income Londoners, as it will provide a real-terms reduction in fares.
3.12.    Londoners on low incomes are more likely to use buses than the Tube.  The fares freeze on buses should particularly benefit low-income Londoners whose priority tends to be local trips by bus, as all bus fares are being frozen – resulting in a real-terms reduction in fares. The Hopper fare, which provides unlimited bus and tram travel within an hour for the price of a single fare, continues to help keep the cost of travel low. The proposed increase tube and rail fares will likely have a negative impact on those using or reliant on those services.
3.13.    LGBTQ+ Londoners have reported hate crime as their major concern in relation to transport. The March 2025 fare changes have no specific implications for LGBTQ+ Londoners, except where they also have any of the other protected characteristics set out above.
3.14.    Some people in the groups identified above are likely to benefit from free travel concessions or discounted fares related to age, disability status, or receipt of income-related benefits. Concessionary fare schemes are being maintained to keep public transport accessible to people who face barriers to public transport use. 
3.15.    The concessions available are set out below:
•    children under 11 travel free on all TfL services (subject to a maximum of four accompanying a fare-paying adult on TfL rail services)
•    the 11-15 Oyster photocard provides free TfL bus and tram travel, and reduced fare rail travel, in London
•    the 16+ Oyster photocard provides free TfL bus and tram travel, and half-fare rail travel, in London
•    the 18+ Student Oyster photocard provides reduced-rate travel using the TfL Bus and Tram Pass, and season travelcards
•    the 18-25 Care Leavers Oyster photocard provides half-price TfL bus and tram travel, including a half-price TfL Bus and Tram Pass and half price on Santander Cycles subscriptions 
•    the Jobcentre Plus Travel Discount Card provides half-price TfL bus, tram and rail travel
•    the Bus & Tram Discount photocard provides half-price TfL bus and tram travel
•    the Veterans Concessionary Travel photocard provides free travel in London
•    the 60+ London Oyster photocard (available up to state-pension age) provides free travel in London (there are restrictions on the use of these concessions between 04:30 and 08:59 on weekdays, except bank holidays)
•    the London Freedom Pass (for people above state-pension age, and people with an eligible disability) provides free travel in London (there are restrictions on the use of the older persons’ Freedom Pass between 04:30 and 8:59 on weekdays, except bank holidays). 
3.16.    At the time of taking this Mayoral Decision, the Mayor is required to have due regard to the matters set out in paragraph 3.1 above. He should consider the potential impacts identified above (having due regard to those matters) and the paragraphs below.
3.17.    As is identified at paragraph 2.3, above, the fares revision proposed in this Mayoral Decision is considered the most effective way to deliver fares that: 
•    are as affordable as possible, and fair and equitable for customers
•    will mean TfL can continue to be run in a manner that is financially sustainable
•    will secure sufficient government funding for required capital investment and major capital projects – enabling TfL to deliver on other priorities that underpin its Business Plan, and that support the delivery of the Mayor’s Transport Strategy.
3.18.    The proposed increase in tube and rail fares is likely to have a negative impact on those using or reliant on those services. However, it is the lowest increase possible that will allow TfL to deliver on these matters, while freezing bus and tram fares and preserving all concessions; and thereby facilitating continued access to TfL public transport network for those most in need, or on low incomes who are more likely to use the bus (including those from protected groups).
3.19.    The equality impacts of the zonal fares system (ZFS) TfL uses to charge customers for using its Tube and rail services have also been assessed. This assessment is contained in Appendix 2, Fares Advice; the Mayor is referred to that paper to consider it, in line with the public sector equality duty. 
3.20.    The outcome of that assessment can be summarised as follows: assessing the specific impacts of the ZFS on those with protected characteristics is extremely difficult given the different combinations of zones that any given customer may travel through for different reasons. However, on the basis of the assessment undertaken, it is possible that some protected groups might be more negatively impacted than others by the ZFS. As the assessment found, white adult men of working age and in employment are probably most likely to be negatively impacted by the ZFS. Notwithstanding this (and noting that any impact will be specific to individual customers, depending on their personal circumstances and use of the TfL network), it is considered that any disproportionate impacts and or disadvantage are justified as a proportionate means of achieving legitimate aims. 
3.21.    The ZFS is considered a fair, equitable, proportionate means of charging customers for using the TfL Tube and rail networks.
 

Links to Mayoral strategies and priorities
4.1.    The Mayor’s Transport Strategy highlights the importance of improving transport accessibility for all Londoners. Part of this is ensuring that the costs of transport remain affordable. These fare proposals will promote the use of London’s public transport facilities and services, by balancing the need to maintain quality services, through ongoing investment, with providing affordable bus travel and limiting the scale of increase as much as possible. All existing TfL concessions and discounts remain in place to support those travelling in London who are most likely to: have lower incomes and protected characteristics; or come from low-income households. 
Consultations and impact assessments
4.2.    The Mayor is not required to undertake a consultation in relation to the fare proposals in this decision.
Conflicts of interest
4.3.    GLA officers involved in the drafting or clearing of this Mayoral Decision will be affected by any change in fares policy when travelling on public transport, in the same way as anyone travelling on London’s transport services. There are no other interests to declare.

5.1.    There are no direct financial implications arising from this decision to the GLA.
5.2.    TfL’s 2025-26 GLA Budget submission was made on 22 November 2024. It included a planning assumption that, in March 2025, fares controlled by the Mayor would increase by 3.6 per cent; and travelcard fares, and the associated PAYG caps, would increase by 4.6 per cent, reflecting NR fares policy announced on 30 October 2024 over which the Mayor has no control. 
5.3.    The proposal (subject to the Mayor’s approval) is to freeze fares on buses; and to increase fares on Tube and rail services, which are set by the Mayor, by 4.6 per cent.
5.4.    Table 5.1 summarises the revenue yields for TfL based on 2025-26 forecasted demand as of December 2024. It assumes that fares and prices rise by an average of 3.6 per cent; this is the net impact of bus fares being frozen, and all other fares and prices increasing by 4.6 per cent. In addition to these changes, TfL’s 2025-26 GLA Budget submission assumes increases to income from continued growth in passenger journeys. The changes to fares have been applied to the 2025-26 forecasted demand and the values represent the potential revenue generation from the fares increase.

Table 5.1: Revenue yields from the 2 March 2025 fare changes (£m per annum) on 2025-26 forecasted demand

Note: Totals may not match sum of individual figures due to rounding
5.5.    All existing concessions will be maintained and are funded in the TfL 2024-25 Budget until the end of the current financial year; are included in the TfL 2025-26 GLA Budget submission for 2025-26; and will be included in the final TfL 2025-26 Budget, due to be approved by the TfL Board in March 2025. This includes the travel concessions for under 18s (on buses and trams) and the 60+ Oystercard, which since 2021-22 have been partly funded from a £15 uplift to the Mayor’s council tax precept.
 

6.1.    The Mayor may issue specific directions, under section 155(1)(c) of the GLA Act, as to the exercise of TfL’s functions. Under section 174(1) of the GLA Act, the Mayor is under a duty to exercise his powers under section 155(1) so as to ensure that the general level and structure of fares for public passenger transport services (provided by TfL or other persons who provide services under agreement with TfL) are determined. This decision is consistent with those statutory obligations.
6.2.    The Mayor must comply with section 149 of the Equality Act 2010 which requires the Mayor to have due regard to the equality obligations referred to in section 3 of this report (Equality comments). when the Mayor exercises a function such as the making of this decision. Section 3, and the Fares Advice (Appendix 2), consider the likely effects of the fare proposals on those with protected characteristics. The Mayor must have regard to these matters when taking this Mayoral Decision.
6.3.    The Mayor is not required to conduct a consultation in relation to the fare proposals.
 

7.1.    The project will be delivered according to the following timetable:

Annex: Fares table 
Appendix 1: Direction to TfL 
Appendix 2: Fares advice to the Mayor (December 2024)