Fares on Transport for London (TfL) services will rise by 4.8 per cent from 1st March 2022, the Mayor of London has announced.
The details released today show that fares will rise by retail price index inflation plus one per cent, an average of 4.8 per cent, meaning most will increase by either 10p or 20p.
That fares would rise by 4.8% was known last July, as that’s the inflation rate used when setting fare rises for the following year. What’s been worked on since then is how they will juggle the prices across all the TfL services to ensure that they collectively add up to a 4.8% increase in TfL’s overall income.
Awkwardly for TfL, although fares rise was set at retail price index plus one per cent (RPI+1%), to leave TfL with a surplus above its increased costs, since last July, the RPI index for inflation has soared, and in December 2021, it had reached 7.5 per cent. So even though fares will rise, they will in fact rise by less than other staple goods.
The fare rises above inflation also only affect TfL specific services, just as the previous fares freeze also only affected TfL services. Travelcards and daily/weekly caps – which are set jointly with the Department for Transport (DfT) and relevant train operating companies – will rise by RPI only (3.8 per cent).
These increases are projected to produce an annualised revenue yield of £178m overall in 2022, comprising £102m for London Underground; £61m for buses; and £15m for the DLR, trams, London Overground and TfL Rail. As the 2022 fares increase has been delayed by two months at the request of DfT to align to fare changes on National Rail services, the total yield expected in the 10 months of 2022 to which it applies falls to around £151m.
While the overall level of fares set by TfL will increase by around 4.8%, some individual Tube fares will increase by more or less than that amount owing to rules stating that increases can only be made by 10p increments. Tube fares solely within Zone 1 will increase for the first time in six years, from £2.40 to £2.50. Passengers who travel greater distances on TfL services will see a slight increase to further bring them in line with nearby National Rail fares.
While single pay as you go fares on Tube, DLR and most TfL-run rail services will increase by 4.8%, bus and tram single fares will increase by 10p to £1.65, and the daily cap will increase by 30p to £4.95, the same price as three single journeys. As rail revenue is significantly higher than bus and tram revenue, and TfL has budgeted for fares to rise by RPI+1 overall to reach financial sustainability in line with the funding agreements, bus and tram fares will need to increase by the equivalent of RPI+2.7 per cent to achieve the overall rise.
A handful of tables to show the price changes of selected fares:
Travelcard seasons – 7 Day ticket prices
|Number of zones||Current||March 2022||Change|
|Including Zone 1|
|Excluding Zone 1|
Adult PAYG fares on TfL Rail services increases in March 2022
|Number of zones||Current||March 2022||Increase|
|Zones incl. Zone 1|
|Zones excl. Zone 1|
All-day PAYG caps in 2021 and 2022
Bus and tram ‘Hopper’ fare will increase by 10p to £1.65. Since it was introduced in September 2016, more than 600 million Hopper fare journeys have been taken.
Bus and tram fares in March 2022
|PAYG – single||£1.55||£1.65||6.5%|
|PAYG – daily cap||£4.65||£4.95||6.5%|
|7 Day Bus & Tram Pass||£21.90||£23.30||6.4%|
|1 Day Bus & Tram Pass||£5.20||£5.50||5.8%|
The half-adult and child fares for bus and tram will be 80p.
These changes to fares are designed to help ensure that TfL can reach financial sustainability by April 2023 in line with the long-term objective of the government funding agreements, and is is only the second time that TfL controlled fares have increased since 2016.
All the current concessions, including free travel for young people under the age of 18 and discounts for students, apprentices and those on certain benefits also remain in place.
Shashi Verma, Director of Strategy at TfL said: “This fares package aims to keep fares as affordable as possible while still ensuring TfL can continue to run clean, green and safe services and support London’s continued economic recovery. Through daily and weekly capping, as well as the Hopper fare and our wide range of concessions, passengers can continue to get the best value fare by using pay as you go with contactless and Oyster.”
The Emirates Air Line, fares will be increasing overall by 9.2 per cent.
The full fares decision can be found here.