Passengers could face surge pricing on inter-city train fares after ministers signalled plans for greater flexibility in how long-distance tickets are priced.
Government documents submitted to peers scrutinising the Railways Bill say fares should move away from a system based on traditional peak times, while supporting “revenue growth”.
The proposals suggest prices could vary more according to demand, with travellers booking on the day or close to departure potentially facing higher costs when services are busy.
That approach is used by airlines and taxi-hailing apps such as Uber, where prices rise for on-demand journeys during periods of high demand. Supporters argue it could also make some tickets cheaper when trains have spare capacity.
However, critics warn that people who have little choice but to travel at short notice could be left paying more than they do under the current system.
The changes could become more significant when the current fare freeze expires in April 2027, with higher prices potentially helping to address the financial pressures facing the rail network.
Rail fares could become more responsive to demand
The latest policy documents state: “Longer-distance and more discretionary markets could allow greater pricing flexibility.”
They add: “This should support a fares system that is easier to understand, fairer and more responsive to how people travel…and support revenue growth.”
The documents say cheaper advance fares should remain available. But passengers buying closer to their journey, or attempting to book trains that are already popular, could find those lower-cost options less accessible.
The plans come despite repeated Labour pledges to deliver cheaper rail travel as the network is gradually brought back into public ownership.
Shadow chancellor Andrew Griffith said: “Labour cannot keep asking commuters and rail users to prop up the cost of re-nationalised rail.
“Labour should be reducing the pressure on hard-pressed families. The Treasury must explain how potential uncapped fare rises would ease the cost of living.”
Richard Holden, the Conservative shadow transport spokesman, said Labour had spent a year claiming it was keeping fares down while opening the door to “Uber-style and airline-style” pricing.
He said the policy could see passengers “rinsed” when travelling between major cities, adding: “They must rule out surge pricing on intercity trains and guarantee that passengers won’t be hit with eye-watering fares just for travelling when they need to.”
Former transport minister Norman Baker said: “If this is an attempt by the back door to extract more money from rail passengers, it’s most certainly not welcome or sensible.”
Initially, officials said the Railways Bill would give the Transport Secretary powers to set parameters and safeguards for overall fare levels, with regulation protecting passengers from large and unnecessary increases.
The Department for Transport said the Bill would give Great British Railways the tools to fix an outdated and complicated fares system.
A spokesman added: “We are already carrying out [demand-based] trials on some long-distance services to help passengers access cheaper fares, reduce overcrowding and make better use of available capacity.”
Labour came to power in 2024 promising to bring Britain’s 19 private train companies into Great British Railways. South Western Railway was the first operator to be re-nationalised last May, while CrossCountry is scheduled to be the last in autumn 2027.
The Railways Bill will establish Great British Railways as a quango responsible for running the network, including its fare structures, from as early as 2029. The Department for Transport could nevertheless oversee changes to fare rules before then.
