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Rail fare hike reveals burden shifting to passengers

Graham Watson

2nd January 2017

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The ever-controversial decision to hike rail fares has been in the news again, with unregulated fares rising by an average of 2.3%.

This has split opinion: the government arguing that the increase is necessary to fund improvements on the train network; commuters, of course, have argued that they are paying more for sub-standard service and that they are being exploited in a way that other users of privatised utilities aren't.

However, the real secret here is contained in a relatively brief summary of the move by Transport Correspondent, Rcihard Westcott: "successive governments have been changing the proportion of the rail bill paid for by passengers. It used to be around 50%. Today it's around 70%."

Which, in the grand scheme of things isn't unfair; how many other private sector goods and services are subsidised to that extent?

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.