REGULATED rail fares, which include most season tickets, are set to rise by 4.1 per cent in January, following the news that Retail Price Inflation was 3.1 per cent in July. Demonstrations protesting about the expected rise have been taking place around the country, led by unions and transport campaigners.

The increase is based on the current Government formula, which is RPI + 1 per cent. This is lower than originally planned. It had been announced that the 2013 and 2014 increases would be RPI + 3 per cent, but this was reduced following a later official u-turn.

The figure of 4.1 per cent is an average. Some fares may rise more or less than this, because train operators may use a ‘flex’ adjustment of up to 5 per cent on individual routes.

Many fares are not affected by this formula. These include off-peak fares for shorter journeys, ‘anytime’ fares on intercity services and first class tickets, all of which are left to the discretion of individual operators.

The rises apply in England, and are also subject to final confirmation when the Autumn Spending Review is published later this year. Previous changes to the formula were announced at that stage, but a rethink is not expected this time.

Peak time fares in Scotland will increase only by RPI, in other words 3.1 per cent, while ScotRail said all its off-peak fares will remain unchanged, which will benefit four out of 10 passengers north of the border.

The transport secretary Patrrick McLoughlin said the Government was increasing the level of investment in the railways, which were nonetheless ‘hugely expensive’ to run.

He explained: “The taxpayer overall is still putting in huge amounts of money… and I’m afraid the passenger also has to make his contribution.”

Labour’s shadow transport secretary Maria Eagle said a future Labour government would abolish the 5 per cent ‘flex’ which can be added to selected fares, although others must fall to maintain the 4.1 per cent average for each operator.

She explained: “At a time when wages are stagnant or falling, it is completely out of touch for Ministers to allow fares to go up by as much as 9.1 per cent again, yet allow private train companies to walk away with £305 million from passengers each year. Labour would ban train companies from hiking fares beyond a strict one per cent above inflation limit, introduce a legal right to the cheapest ticket and crack down on rising car parking charges at stations.”

The policy is also being bitterly criticised by consumer groups and unions, with the TUC claiming that rail fares have risen by 40 per cent since 2008.

TUC general secretary Frances O’Grady called for renationalisation of the industry, and said the government should ‘put evidence before ideology’. She added: “Wage-busting fare rises are not even going on much needed service improvements. Passenger and public subsidies are lining the pockets of the shareholders.”

RMT general secretary Bob Crow said: “This latest inflation-busting hike in fares is a kick in the teeth for the British people who are condemned for another year to pay the highest prices in Europe to travel on clapped-out, overcrowded and unreliable trains while the private operators are laughing all the way to the bank.”

Demonstrators have been protesting at about 50 stations, including key hubs such as London King’s Cross, Birmingham New Street and Manchester Piccadilly.

Campaign for Better Transport chief executive Stephen Joseph said: “The Coalition pledged to make fares fairer. Instead, they’ve continued to ramp up the cost of train travel, far out-stripping incomes. This isn’t just bad for commuters, it’s bad for the economy too. If the Government is serious about growth it needs to stop pricing people out of jobs.”

“Getting to work is now the biggest single monthly outgoing for many commuters – more than food, more than housing. One of the surest ways of stamping on any green shoots of recovery is to price people off the trains and out of the jobs market. For the sake of the economy we should end above inflation fares increases now and start planning for fare reductions.”

There was also a protest outside the Department for Transport in Westminster, where TSSA general secretary Manuel Cortes handed in a personal letter urging rail minister Norman Baker to set a deadline for ending the annual ‘inflation plus’ fare rises.

Mr Cortes said: “What we want is an end to these crippling year in year out rail fare rises, starting in 2015 with RPI minus 1 per cent. We already have the highest rail fares in Europe and we want a firm commitment from Norman to scrap the present formula.”