The UK government has announced that rail fares in England will remain unchanged in 2026, marking the first fare freeze in 30 years. Chancellor Rachel Reeves is expected to reaffirm this decision in the upcoming budget, aimed at mitigating inflation, alleviating the cost of living, and supporting economic growth.
This budget announcement follows Prime Minister Keir Starmer’s return from the G20 summit, where he emphasized a focus on growth and stability. As part of budget preparations, Reeves will outline tax increases intended to address an estimated £20 billion gap in public finances. Reports suggest that freezing income tax thresholds may generate approximately £7.5 billion, alongside other revenue measures.
While the government anticipates potential public disapproval regarding tax hikes, the fare freeze is seen as a strategy to regain some public favor. The freeze applies to regulated fares, which include season tickets and peak return fares, affecting over a billion journeys annually in England. Commuters could save more than £300 a year on ticket costs, depending on their routes.
The decision follows a history of rising fares, which have increased about 64% since 2010, while transport expenses account for approximately 12% of household budgets. Train companies may still adjust other ticket prices, such as those for advance bookings and first-class seats, but plans are in place for a fully nationalized railway system by the end of 2027.
This fare freeze has received positive feedback from public transport advocates, who have drawn attention to the disparity between rising rail fares and stagnant fuel costs for motorists. While reactions from critics have emerged, the government aims to create an environment conducive to economic stability while addressing public transit costs. Decisions regarding fares in Scotland and Wales will be determined by their respective devolved governments.
Source: https://www.theguardian.com/money/2025/nov/22/rail-passengers-freeze-fares-england-2026-budget