MD3247 Off-peak Friday fares trial

1.1    Historically, commuter travel in London has seen workers travel predominantly Monday to Friday. However, post-pandemic, travel habits have changed. Ridership on public transport services in London has recovered to 90 per cent of pre-pandemic levels across all services. However, Tube ridership on Fridays remains lower at around 73 per cent, compared to mid-week figures of up to 85 per cent. Conversely, some weekends now exceed pre-pandemic levels. 
1.2    Travel patterns show that peak-time ridership (indicating ‘commuter’ traffic) on Tuesday to Thursday has recovered more quickly than on Monday and Friday. While Fridays have always had the lowest weekday travel volumes at peak times, ridership on Mondays has increased to a higher proportion compared to pre-pandemic levels, while Fridays remain the most depressed peak-time travel volumes compared to pre-pandemic levels (figure 1 below).

Figure 1: Number of journeys on TfL rail modes between 6.30am and 9.30am

1.3    Feedback from stakeholders also suggests that the return to working from the office on Fridays has been much slower than on other days, raising concerns about the impact on businesses of lower Friday footfall. Analysis by the GLA-led High Streets Data Service has shown that, while the Central Activity Zone has always had fewer daytime visitors and workers on a Friday compared to other days of the week, the effect has grown post-pandemic. In November 2023, Friday daytime saw 36 per cent fewer workers and 17 per cent fewer visitors compared to mid-week. This effect is most prominent in the eastern City, Whitehall, and Paddington, where Friday daytime worker counts were less than half their mid-week levels. It is also not unique to the Central Activity Zone: the drop-off in Friday daytime workers can be seen in town centres and industrial areas across every borough and some outer London town centres see up to 62 per cent fewer workers on Fridays than mid-week. 
1.4    The Mayor has therefore asked TfL to explore trialling all-day off-peak fares on Fridays. The aims are to better understand whether lower fares at peak times could help drive ridership on TfL and other London rail services on Fridays; what impact this might have on travel on other days of the week; and whether this would, in turn, boost London’s wider economic recovery. 
1.5    The Mayor has identified funding, as part of the budget-setting process for 2024-25, that would allow TfL to trial an innovative approach to its fares and ticketing structures, whereby off-peak fares will apply all day on Fridays. The timing of this trial will allow it to support the Mayor’s wider plans to revitalise Fridays, working with businesses, the hospitality sector and other key stakeholders to encourage more Londoners back into the city on Fridays to make the most of all that London has to offer.
1.6    The trial is due to finish by the end of May 2024. This will allow TfL to assess the impact of the trial by July 2024. At this point, TfL is required to submit to the government its plans of how it will maintain and strengthen its financial sustainability from 2024-25 onwards, which is a condition of its capital funding settlement, agreed in December 2023. Should the results of the trial indicate that off-peak Fridays have the potential to increase ridership, this could be factored in as appropriate.  
The ‘off-peak Friday’ trial 
1.7    Subject to the Mayor’s approval, the trial would operate for 13 weeks, from Friday 8 March 2024 to Friday 31 May 2024 inclusive. During this period, off-peak fares will apply all day on Friday, on all TfL rail services, and in some instances (see paragraphs 1.12 and 1.15, below) on National Rail services. 
1.8    Off-peak fares will apply to all adult pay-as-you-go (PAYG) single fares and daily caps when using contactless or Oyster cards, and to single PAYG fares and daily caps for holders of 11-15 Zip Oyster cards, 16+ Zip Oyster cards, 18+ Student Oyster cards and Jobcentre Plus cards. This will also apply to National Rail discount railcards when added to an Oyster card. 
1.9    60+ London Oyster photocards and Older Persons’ Freedom Passes will be valid all day on TfL and other rail services where normally accepted. Holders of these photocards and passes will be able to travel free before 09:00 on Fridays on TfL rail and buses because these concessions give free off-peak travel on TfL services, and during the trial travel before 09:00 on Fridays will be treated as an off-peak period. The Disabled Persons’ Freedom Pass and Veterans Oyster photocard are already valid all day on TfL services.
1.10    Tube and rail fares to and from Heathrow via Zone 1 will not be included in the trial, and will remain as peak fares all day. As explained in MD3028 (introducing all-day peak fares to and from Heathrow via zone 1), journeys to and from Heathrow are a special case reflecting its status as a hub for visitor travel, and so it is not considered necessary or appropriate to include these journeys within the proposed trial. TfL cash single fares, also known as paper tickets, will not be affected by this proposal and will remain the same price. This is because TfL cash single fares are the same price regardless of time of travel. Weekly PAYG caps and season tickets will not be affected by the proposal either. 
1.11    As bus and tram fares are the same flat fare regardless of time of travel there will be no change to bus or tram fares on Fridays. 
1.12    As mentioned above, off-peak fares will apply all day on Friday in some instances on National Rail services – namely, on those that accept contactless or Oyster PAYG (using TfL’s PAYG ticketing network). The 60+ London Oyster photocard and Older Persons’ Freedom Passes will also be valid all day on National Rail services within London.  
1.13    As this has not been factored into TfL’s 2024 Business Plan, the Mayor will provide additional funding of £24m to TfL to support the trial. This is assumed revenue loss across all TfL and National Rail services that accept PAYG. The associated revenue grants will be fully funded from a transfer to TfL of £24m from Transport Services Funding Reserve (£6m in 2023-24 and £18m in 2024-25), which will be included in the Mayor’s Budget recent budget publications.
1.14    Separately, GLA officers will work with TfL and London & Partners to encourage businesses and attractions in London to consider introducing special offers providing further encouragement for people to travel on Fridays when they may not otherwise have done so.
Compensation to Train Operating Companies (TOCs)
1.15    This decision asks the Mayor to direct TfL to introduce a trial of all-day off-peak fares on Fridays, on all TfL rail services, for 13 weeks from Friday 8 March 2024 to Friday 31 May 2024 inclusive. Making these changes to TfL rail fares would mean that National Rail services accepting contactless or Oyster PAYG (using TfL’s PAYG ticketing network) would also be affected. This is because, as TfL’s ticketing system is used to collect these fares, any changes to this system (i.e.: application of all-day off-peak fares) would have to be applied to those National Rail services. This trial will therefore impact fares for travel on some National Rail services, and so the payment of appropriate compensation to TOCs for the associated loss of revenue will be given, as addressed in Part 2 of this Mayoral Decision.
Assessing the trial 
1.16    This trial aims to provide TfL and rail operators with information to better understand whether lower-peak fares on Fridays could help increase ridership on that day, and what impact it might have on travel on other days of the week. This will be assessed at a pan-London level, and a more localised level around key commuting stations in Zones 1 and 2. 
1.17    Using research from TfL’s Customer Pulse survey, which is used to understand customer perceptions, ridership data and feedback from the business community, TfL will monitor the impact of off-peak Fridays throughout the trial; and evaluate the cumulative impact when it has ended. An assessment of the revenue impact of the trial will be part of the post-trial analysis, considering the overall net impact on ridership and revenue to TfL.
1.18    Following the completion of the trial, TfL will report on its findings, which will help to inform future fares policy.
 

2.1.    The objective of the trial is to gather information and data on whether off-peak fares lead to increased ridership on London rail services on Fridays; and what impact this might have on other days of the week. In turn, it will consider whether this increases footfall for key businesses, industries and localities, and whether this will boost London’s economy. No specific outcomes have been identified yet, as this trial is designed to better understand impact to inform future fares policy. 

3.1.    Under section 149 of the Equality Act 2010, as public authorities, the Mayor and TfL are subject to the public sector equality duty and must have ‘due regard’ to the need to: eliminate unlawful discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Act; and advance equality of opportunity, and foster good relations, between people who share a relevant protected characteristic and those who do not. Relevant protected characteristics under section 149 of the Equality Act are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.
3.2.    The duty above applies to the Mayor’s duty to direct TfL as to the general level and structure of fares under the Greater London Authority Act 1999. The Mayor is not required to conduct a consultation in relation to the fares proposals. 
3.3.    TfL has identified seven groups of Londoners (highlighted below) who typically face barriers to public transport use. Londoners with protected characteristics are more likely to benefit from off-peak fares, because statistically they are more likely to be on low incomes. As such, off-peak Fridays offered through the proposed trial could help to reduce the impact of cost as a barrier to public transport use. 
3.4.    Those who cite affordability as a barrier to transport use would benefit from a reduction in fares, if they normally travel via Tube and rail during peak times on a Friday. Making Tube and rail fares off-peak on Fridays only may also encourage travel on this day over others as it becomes a more affordable day. Off-peak fares on Fridays may encourage a shift in modes, introducing people to Tube and rail travel who would normally not have considered it, as the relative cost differential between bus and Tube/rail is lessened. 
3.5.    Black, Asian and Minority Ethnic Londoners are more likely to: live in low-income households; cite affordability as a barrier to transport; and use buses rather than the Tube.  They could benefit from the proposed all-day off-peak Friday as outlined above (paragraph 3.4). 
3.6.    Women are more likely to be primary carers at home, so are less likely to be in full-time employment, and more frequently cite affordability as a barrier to transport. Women are also more likely to use buses than the Tube.  They could benefit from the proposed all-day off-peak Friday, as outlined above (paragraph 3.4).
3.7.    Older Londoners are more likely to be retired, and many live on low incomes. The 60+ concession, and the Older Persons’ Freedom Pass, currently permit older Londoners to travel free at all times, except between 4.30am and 9am, Monday to Friday. Making Fridays off-peak would allow holders of these concessions to travel free between 4.30am and 9am on Fridays, for the duration of the trial. 
3.8.    Disabled Londoners are more likely to live in low-income households. One in three families in London with a disabled child live in poverty.  One of the reasons for this is the higher costs of supporting a disabled child. In some cases, it can be three times more expensive to bring up a child with an impairment.  Carers are also likely to experience financial hardships as a knock-on effect of the need to take lower-paid and part-time work. Carers could benefit from the proposed all-day off-peak Friday as outlined above (paragraph 3.4).
3.9.    Users of the Disabled Person’s Freedom Pass will not impacted by the trial, as they already travel free at all times with this concession. However, the discretionary nature of the eligibility criteria for this concession can mean that applications from some disabled people (for example, adults with learning difficulties) are not successful. This group may have lower incomes but not benefit from travel concessions. Therefore, the off-peak fares on Friday could benefit disabled people who do not hold a Disabled Person’s Freedom Pass, as outlined above (paragraph 3.4).
3.10.    Younger Londoners are more likely to be from a Black, Asian or Minority Ethnic community, and are more likely to experience the financial barriers discussed above.  Holders of the Zip Card concession – which allows free or discounted travel – would benefit from the trial, if they are paying a fare during what would normally be peak times on Fridays, as outlined above (paragraph 3.4).
3.11.    Londoners on low incomes tend to be women; older people; those from a Black, Asian or Minority Ethnic background; disabled people; and those not in work. A low income largely reflects working status, though the underlying causes may be tied to the cost of housing, childcare and transport; and access to education, qualifications and health. Among children living in poverty, more of them are part of low-income working families than workless families.  London has the highest poverty rates in the UK across all age groups.  Londoners on low income could benefit from the proposed all-day off-peak Friday as outlined above (paragraph 3.4).
3.12.    LGBTQ+ Londoners have reported hate crime as their major concern in relation to transport. The proposed fare change would have no specific implications for LGBTQ+ Londoners, except where they also have any of the other protected characteristics set out above.
3.13.    The Mayor is required to consider the potential equalities impacts discussed above, and any mitigations in place, at the time a decision to direct is made in relation to the fare proposals in this paper. 
3.14.    The proposals will not have an adverse impact on TfL’s ability to run and invest in transport services and therefore will not impact users of public transport except as outlined above. All existing TfL concessions and discounts remain in place to support those who have protected characteristics, or are from low-income households, when travelling in London. The proposals have been prepared with due regard for the public sector equality duty.
3.15.    Equality impacts will continue to be identified and considered as appropriate within and following the trial, including in relation to any wider impacts on London’s economy.
 

Key risks and issues 
4.1.    TfL has not previously changed fares for one weekday in isolation, except as part of usual practice on bank holidays when off-peak fares apply. As such, the impact of this policy is not yet known, though the objective of the trial is to provide better data to inform future fares policy. 
4.2.    The proposed decision will mean that off-peak fares will apply all day on Fridays, in some instances, on National Rail services. There could be some customer confusion as to what these circumstances are. TfL will work with the TOCs to ensure that this is communicated appropriately to customers.
Links to Mayoral strategies and priorities
4.3.    The Mayor’s Transport Strategy highlights the importance of improving transport accessibility for all Londoners. Part of this is ensuring that the costs of transport remain affordable. It is hoped that this trial will provide useful information on whether the proposal will promote the use of London’s public transport facilities and services by keeping public transport affordable. All existing TfL concessions and discounts remain in place to support those who have protected characteristics, or are from low-income households, when travelling in London.
Consultations and impact assessments
4.4.    The Mayor is not required to undertake a consultation in relation to the fare proposal in this decision. 
4.5.    TfL has worked collaboratively with the Department for Transport and Rail Delivery Group to ensure Train Operating Companies that will be impacted by the trial have been consulted. Additionally, in the spirit of this working collaboration, findings from the trial will be shared between all parties.
Declarations of interests
4.6.    GLA officers involved in the drafting or clearing of this MD will be affected by any change in fares policy when travelling on public transport, in the same way as anyone travelling on London’s transport services. There are no other interests to declare.
 

5.1    Separate to the proposed off-peak Fridays fares trial, the Mayor is asked to note some corrections to MD3221, March 2024 Fares Changes. MD3221 contained tables setting out, for information, fares to be charged by the TOCs. Some of these fares were identified inaccurately within the MD due to an administrative error. The Mayor is asked to note that these fares have been corrected and are contained in the tables in the Annex to this Mayoral Decision (MD3247). As these are fares that were provided for information purposes in the MD, and the TfL fares that were subject to the Mayor’s Direction approved in MD3221 were correct, no further action is necessary. 

6.1.    The £24 million of funding required for this initiative is to be funded from a transfer to TfL from the Transport Services Reserve (£6m in 2023-24 and £18m in 2024-25). This was first included as a proposal in the GLA Group Draft Consolidated Budget 2024-25, published on 17 January 2024 and then in the Final Draft Consolidated Budget, published on 14 February 2024. 
6.2.    Although, under legislation, the GLA cannot stipulate what the funding will be used for, TfL has confirmed that it intends to apply the funding outlined above to offset the forecast initial revenue loss across all TfL and National Rail services that accept PAYG. 
 

7.1.    The Mayor may issue general directions, under section 155(1)(b) of the GLA Act, as to the manner in which TfL is to exercise its functions; and specific directions, under section 155(1)(c), as to the exercise of TfL’s functions. Under section 174(1) of the GLA Act, the Mayor is under a duty to exercise his powers under section 155(1), so as to ensure that the general level and structure of fares for public passenger transport services (provided by TfL or other persons who provide services under agreement with TfL) are determined. This decision is consistent with those statutory obligations.
7.2.    Under section 149 of the Equality Act 2010, due regard must be had, when the Mayor exercises a function such as the making of this decision, to the equality obligations referred to in section 3 of this report. Consideration is given in this section to the likely effects of the fare proposals on protected groups, and the Mayor must have regard to these matters when making this decision.
7.3.    The Mayor is not required to conduct a consultation in relation to the fare proposals.
7.4.    Under section 121 of the GLA Act, the Mayor may pay grants towards meeting non-capital expenditure incurred or to be incurred by a functional body for the purposes of, or in connection with, the discharge of the functions of that body. A grant made under this section must not be made subject to any limitation in respect of the expenditure to which it is applied towards meeting. 
 

8.1     The project will be delivered according to the following timetable:

Appendix 1 - Direction