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Britain’s rail fares are set to be frozen for the first time in 30 years in next week’s Budget, as part of a wider attempt to tackle the cost of living crisis.
The freeze on the price of regulated train tickets from March next year comes after fares rose by almost 5 per cent earlier this year, ahead of inflation.
Rachel Reeves said she was determined to use the budget to cut household costs including travel costs, food prices and energy bills, although she was expected to raise taxes elsewhere.
Freezing rail fares would “reduce household costs for hard-working families” and boost economic growth by making travel more affordable, the Treasury said.
Officials said season ticket holders on some of the UK’s busiest routes would save hundreds of pounds a year as a result. For example, a commuter traveling between London and Milton Keynes would save £315 a year, while someone traveling regularly between Bradford and Leeds would save £57.
The Treasury refused to say how much the measure would cost, although one official said consumers would benefit “by £600 million”.
The chancellor has sought new ways to not only help consumers but also bring down inflation, which in theory could accelerate the likelihood of an interest rate cut by the Bank of England.
Reeves considered switching from the previous rail rate model tied to the Retail Price Index, which tends to move at a faster pace, to the Consumer Price Index, but ultimately opted for a total freeze, officials said.
“With transport costs accounting for 12 per cent of household spending, this cost-cutting measure will deliver real savings, delivering on the Government’s commitment to putting more money in the pockets of workers,” the Treasury said. “It will also directly limit inflation by keeping a major component of daily costs low.”
The government sets an annual cap on certain fares, such as season tickets, peak-time returns for commuters and off-peak returns between major cities, which this year was 4.6 per cent in England and Wales.
But “unregulated” tickets – such as first class, economy tickets and advance purchases – can increase more, meaning the average fare increase this year was above the cap.
Rail fares in England and Wales rose by 5.1 per cent in March 2025 and 5 per cent in 2024 – both significantly faster than inflation – and by 5.7 per cent in 2023, according to the Office of Rail and Road, the sector regulator.
Ministers said the freeze builds on the government’s wider plans to create a publicly owned “Great British Railways”.
The move was welcomed by Mick Whelan, general secretary of train drivers’ union Aslef, who called it “the right decision at the right time”.
“The railway is Britain’s green alternative: freeing cars and trucks from our congested roads and moving people and goods safely across our country, in an environmentally friendly way,” he said.
The Rail Delivery Group, an industry body, said the fare freeze was “good news” for customers.
“Rail usage continues to grow year over year, helping people get to work and connect with family,” the release added.
