Transport costs to rise for Londoners

16/10/2009

London residents are facing a big hike in both private and public transport costs.

Boris Johnson, the mayor of London, said that the congestion charge for the centre of the city would increase from £8 to £10 for drivers who did not participate in a new auto-payments system.

This change will take effect at the end of this year.

Meanwhile, tube and bus fares will rise by around four per cent and 13 per cent respectively from January 2010.

The decision has been justified in order to provide money for investments in upgrading the city's transport infrastructure.

However, the extra costs could have adverse effects on the city's low-income workers - and could potentially worsen their debt problems.

Kevin Still, EuroDebt director, said: "There appears to be limited respite for commuters, as fuel and transport costs rise at well above the rate of inflation.

"The recent uSwitch survey on quality of life across Europe showed that UK residents pay a significant premium over the rest of Europe on petrol and diesel. With the job market in serious jeopardy, people will travel further and further for employment, putting pressure on household budgets."

He added: "When consumers enter Debt Management Plans or an IVA, a realistic budget needs to be allowed to accommodate people trying to hold down a job where considerable travel or commuting is involved. This can have a knock on effect on child care costs." ADNFCR-1819-ID-19413117-ADNFCR