Tube fare hikes in 2010 despite negative inflation

16/10/2009

There will be an increase in public transport fares across London next year, Mayor Boris Johnson has announced – and that's despite official inflation dipping.

Bus fares are reported to rise by 12.7 per cent and tube fares are expected to rise by 3.9 per cent.

The rise in public transport prices comes after the Official of National Statistics announced that inflation is falling by 1.4 per cent according to the Retail Prices Index.

The Mayor justified his decision by saying a price hike is necessary to cope with the decline in passenger numbers – a result of the recession.
Debt solutions firm EuroDebt says 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.

When consumers enter Debt Management Plan'>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.

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