The fares package for 2010 means that, overall, bus fares will rise by 12.7 per cent and Tube fares by 3.9 per cent.  This is comparable to fare increases introduced in 2005 and 2006, when bus and Tube fares increased by 12.7 per cent and 4 per cent, and then by 12.9 per cent and 3.9 per cent respectively.

The Mayor also set out changes to the operation of London’s Congestion Charge Scheme, including plans to make it easier to pay and avoid penalty charge notices through the introduction of payment on account in 2010.

The Mayor said:

“Nobody wants to make an announcement like this, especially when Londoners are feeling the effects of the recession. It is not a decision that I have taken lightly.  Indeed, I have been persuaded of the need for fare rises only after ensuring that every efficiency possible, at least £5 billion in total, is being made at TfL.

“However the mistakes of the past and the current economic climate have conspired to present us with a huge challenge. The crucial thing is that we safeguard the investment in our city’s future and that’s why I’m asking Londoners to accept this difficult decision. With this package we can protect the elderly, the young, the poorest, and disabled Londoners, and can go forward to deliver the vital improvements that Londoners deserve – including Crossrail, the upgrade of eight Tube lines, new trains, the cycling revolution, and a host of other improvements ahead of the 2012 Games.

“I know that Londoners value hugely the expansion of, and improvements to, the buses and Tube and the free or concessionary fares available for many passengers.  I share that view.  Yet it is now clear to everyone that the era of ever-rising funding from the taxpayer is now firmly at an end.  I will need to take this into account when it comes to setting fares in future years.  But I am determined to ensure that fares in London will continue to deliver excellent value for money, particularly when compared to the fares charged in other UK cities.”

The main elements are:

* Oyster pay as you go bus fare from £1.00 to £1.20;
* A seven day bus pass from £13.80 to £16.60;
* On the Tube, the Zone 1 Oyster pay as you go fare from £1.60 to £1.80;
* Most other Oyster pay as you go fares on Tube also increase by 20p, with larger increases in some longer distance peak fares;
* While there is no set formula by which fares are decided, TfL’s planning assumption will be that fares will rise RPI+2% each year.  However, the actual level of fares will be decided by the Mayor;
* The vast majority of Travelcard prices will be frozen across the network;
* By using Oyster, Londoners will continue to receive best value single journey and daily prices across the TfL network, including the daily price cap; and,
* Plans to ensure Oyster, including pay as you go, can be used on all national rail services within Greater London are progressing, and the Mayor expects to be able to make an announcement on this shortly.

While all of the major schemes to deliver increases in transport capacity and reliability go ahead, the Mayor also set out further steps which are included in TfL’s Business Plan, which is to be considered by the TfL Board next week. These include the deferral by three years of all remaining former Metronet Tube station renewals, the work to upgrade Victoria Tube station now to be complete in 2018, available resources for step-free access schemes on the Tube targeted at the stations where they can deliver the greatest benefit for the largest number of passengers, and some limited bus service reductions, and minor reductions in service on a few sections of the Tube, to reflect changes in passenger demand.

Source: London.gov

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