MD3221 March 2024 fare change

1. 1. To support Londoners during a cost-of-living crisis, and ensure that public transport is as affordable as possible, the Mayor will, by approving this decision, freeze all fares on buses, London Underground (LU) and Trams. Fares will also be frozen on the Docklands Light Railway (DLR); the London Overground; and Elizabeth line services where Tube fares apply; and train operating company (TOC) services that accept fares set by TfL. As this will provide less revenue to TfL than assumed in its 2024 Business Plan, the Mayor will provide additional funding to TfL to address the shortfall from freezing TfL-regulated fares controlled by the Mayor which is assessed to be around £123m.
   2. The Mayor has previously frozen fares, keeping them at 2016 levels until 2021 when they were increased as a result of the conditions in TfL’s COVID-19 funding agreement with government.  The Mayor’s previous decision in 2016 to freeze fares taken together with this decision for 2024, if approved, will mean that fares in 2024 will be 14 per cent lower than if they had risen in line with National Rail Fares, and 21 per cent lower than if they had risen in line with inflation throughout this period.
   3. Travelcard prices and the cost of the multi-modal PAYG caps are set in agreement with the TOCs and not set by the Mayor. As such, a different fares policy will apply to these fares. The TOCs are required by the Department for Transport (DfT) to increase their regulated fares by no more than 4.9 per cent on average, as announced on 22 December 2023. All existing TfL fare concessions are protected and maintained by the proposed decision.
   4. Subject to the Mayor’s approval, this fare revision will be implemented on 3 March 2024.
   5. There has been a series of funding settlements between TfL and the government in response to the financial stresses created for TfL by the COVID-19 pandemic and the consequent loss of fares income. TfL’s funding settlement with the government in August 2022 set out a passenger revenue scenario for 2022-23 and 2023-24, with an assumed annual increase of fares by four per cent in March of each year until 2024. The planning assumption of a four per cent increase was maintained in the 2024 TfL Business Plan, which was approved by the TfL Finance Committee on 22 December 2023.
   6. Public transport usage has been affected by changes in travel patterns since the COVID-19 pandemic; this has impacted the revenue collected by TfL. Passenger levels have been recovering and have improved since 2022. Overall demand by the end of 2023 was around 17 per cent below 2019 levels on LU and 16 per cent lower on buses. The overall revenue yield included in this decision is based on the core GLA budget passenger income scenario TfL submitted to the GLA in December 2023.
   7. The Annex to this Decision includes summary fare tables. Fuller details are set out in the Schedules attached to the Mayoral Direction to TfL included at Appendix 1.

Bus and tram fares

1. 8. In March 2024, bus and tram fares will be frozen at the same level as set in 2023 (see Table 1.1). The Hopper fare will continue to permit unlimited free transfers within an hour of a first-paid-for bus or tram PAYG journey. The adult PAYG single fare remains at £1.75. The daily bus and tram cap remains at £5.25, equal to the price of three single fares. The 7 Day Bus & Tram Pass remains at £24.70.
   9. The half-adult and child bus and tram fares will remain at £0.85.

Table 1.1: Bus and tram fares in March 2024

Tube, DLR, Elizabeth Line and Overground fares in Zones 1-6

1. 10. On Tube and other TfL rail services where Tube fares apply, PAYG single fares are frozen (see Table 1.2). PAYG is used for around 70 per cent of journeys made on Tube and TfL rail services.
   11. The child peak LU PAYG fare remains at £0.95 – half the minimum adult peak fare. Increases apply where fares are set in agreement with TOCs: the flat child off-peak PAYG fare on services where National Rail (NR) fares apply increases by 5p to £0.90; the off-peak child PAYG cap increases by 10p to £1.80.
   12. Fares on the Elizabeth line are frozen. TfL PAYG fares will apply in Zones 1-6, with special single fares applying for journeys to and from Heathrow (as specified in Annex A1).

Table 1.2: Adult PAYG fares on TfL rail services increases in March 2024

Travelcard season tickets in Zones 1-6

1. 13. Travelcard season ticket prices increase as shown in Table 1.3, below, and Table A3 in the Annex. The overall increase across all Travelcards is 4.9 per cent. This reflects national government’s rail fares policy, as provided in DfT guidance to TOCs. These prices also apply to the equivalent 7-Day PAYG caps. Monthly Travelcard season prices are calculated as 3.84 times the 7-Day price (rounded up to the closest 10p multiple). Annual Travelcard season prices are calculated as 40 times the 7-Day price.

Table 1.3: Travelcard seasons – 7 Day Travelcard prices

LU cash fares in Zones 1-6

1. 14. Cash fares (also known as paper tickets) for Zones 1-6 will remain at £6.70 for a single ticket. Child cash fares for those aged 11 to 15 remain at half the adult rate. Accompanied under-11s will continue to travel for free. Fewer than 1 per cent of Tube journeys are now made with cash fares.
   15. Cash fares in Zones 1-6 on services where NR fares apply will increase overall by 4.9 per cent, reflecting national government’s rail fares policy. Full details are set out in the Annex Table A2.

One-day PAYG price caps in Zones 1-6

1. 16. Tables 1.4.1 and 1.4.2, below, set out the PAYG caps and Day Travelcard prices.
   17. The all-day PAYG caps are set by agreement with the TOCs to be 20 per cent of 7 Day Travelcard prices. The caps increase by between 40p and 70p in proportion to the increases in Travelcard season ticket prices, which are increasing overall by 4.9 per cent, reflecting the national government’s rail fare policy.

Table 1.4.1: All-day PAYG caps in 2023 and 2024

Day Travelcards

1. 18. The prices of both the Zones 1-6 off-peak Day Travelcard, and the Zones 1-4 Anytime Day Travelcard, will increase by 70p to £15.90. The Zones 1-6 All Day Travelcard ticket price will increase by £1.10 to £22.60. These fares are set in agreement with TOCs and are increasing overall by 4.9 per cent, reflecting the national government’s rail fare policy.
   19. Out-boundary Day Travelcards sold for travel from stations outside Zones 1-6 as part of a National Rail ticket from March 2024 will increase on average by 3 per cent in addition to the fare set in agreement with TOCs to reflect the national government’s rail fare policy.

Table 1.4.2: Day Travelcard tickets in 2023 and 2024

Concessions and discounts on TfL rail services

1. 20. For under-16s, all-Day Travelcard prices and peak PAYG daily caps are set at half the adult rate and increase in line with adult prices. The under-16s off-peak cap available through the Zip Card increases by 10p to £1.80.
   21. Accompanied under-11s continue to travel free on all TfL services; and on TOC services, provided a valid Zip Card is held.
   22. These fares are set in agreement with TOCs and are increasing overall by 4.9 per cent, reflecting the national government’s rail fare policy.

Tube fares for travel beyond Zone 6

1. 23. Beyond the Greater London area, PAYG and cash single fares involving Zones 7 to 9 applying on the Tube and on certain rail services will increase overall by 4.9 per cent, reflecting the national government’s rail fare policy. Full details are given in Table A4 in the Annex.
   24. Travelcard prices and the associated PAYG caps with coverage in Zones 7 to 9 increase overall by 4.9 per cent reflecting the national government’s rail fare policy. Full details are given in Tables A6 and A7 in the Annex.

Fares on services transferred to TfL in May 2015

1. 25. On the Greater Anglia services to Liverpool Street, transferred to TfL in May 2015, NR cash single fares and point-to-point season prices were retained as part of the transfer arrangements. These NR fares will increase overall by 4.9 per cent, reflecting the national government’s rail fare policy. This change will be on services between Liverpool Street station and Enfield Town, Cheshunt (via Seven Sisters) and Chingford, along with services between Romford and Upminster.

Fares on services transferred to TfL in May 2018      

1. 26. On the Great Western and Heathrow Connect services transferred to TfL in May 2018, NR cash single fares and point-to-point season prices were retained as part of the transfer arrangements reached over 10 years ago between DfT and TfL. These NR fares will increase overall by 4.9 per cent reflecting the national government’s rail fare policy. This change will be services from Paddington which terminate at Hayes & Harlington and the services between Paddington and the Heathrow terminal stations.

1. 27. The TfL-set supplements to the Heathrow fares will remain at the level set in 2023.

Fares on the Elizabeth line service to Reading

1. 28. Since 15 December 2019, an Elizabeth line service has run between Reading and Paddington. Under agreements reached over 10 years ago between the DfT and TfL, common fares will apply on the TOC and TfL services. On these services, NR cash single fares and point-to-point season prices were retained as part of the transfer arrangements. These NR fares will increase overall by 4.9 per cent reflecting the national government’s rail fare policy.

IFS Cloud Cable Car

1. 29. On the IFS Cloud Cable Car, the one-way adult fare to ride on the cable car will remain at £6.00. The child fare will remain at 50 per cent of the adult fare.
   30. The carnet ticket price will stay the same, so that it remains equal to £1.70 per journey. This will continue to support local and regular users of the service.

Table 1.5: IFS Cloud Cable Car fares in 2023 and 2024

2.1.    The Mayor is under a statutory duty to develop and implement policies for the promotion and encouragement of safe, integrated, efficient and economic transport facilities and services to, from and within Greater London. The Mayor is proposing to freeze all Transport for London bus, tram and Tube fares, as well as fares on all other rail services in London where Tube fares apply, and to continue his protection of all TfL concessions. 
2.2.    The Mayor wants to ensure any fares policy keeps fares as affordable as possible. At the same time, the Mayor and TfL need TfL to continue to be run in a manner that is financially sustainable (meaning that its operating income is sufficient to cover its operating costs); this is a core objective of TfL that is also reflected in funding settlements with the government. To ensure both objectives are fulfilled, the Mayor will provide additional funding to TfL to address the shortfall in revenue from freezing TfL-regulated fares compared to TfL’s Business Plan assumption, via his budget. Further detail is included in section 5 of this report. This funding will support TfL as it reaches financial sustainability and enable the ongoing delivery of the Mayor’s Transport Strategy.
 

3.1.    Under section 149 of the Equality Act 2010, as public authorities, the Mayor and TfL are subject to a public sector equality duty and must have ‘due regard’ to the need to: eliminate unlawful discrimination, harassment and victimisation and any other conduct that is prohibited by or under the Act; advance equality of opportunity between people who share a relevant protected characteristic and those who do not; 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 (GLA Act). 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. Among the key issues for these groups is the cost of fares. 
3.4.    Londoners with protected characteristics are likely to be affected by increases in fares, because statistically they are more likely to be on low incomes and as such, a fares freeze will help to minimise this barrier to public transport use. 
3.5.    Black, Asian and Minority Ethnic Londoners are more likely to live in low-income households; to cite affordability as a barrier to transport; and to use buses rather than the Tube.  The freezing of TfL fares should reduce barriers to travel for these groups, as it will provide a real-terms reduction in fares.
3.6.    Women are more likely to be the primary carer 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.  The freezing of TfL fares should reduce barriers to travel for women, as it will provide a real-terms reduction in fares. 
3.7.    Older Londoners are more likely to be retired, and many live on low incomes. The 60+ concession, and the Freedom Pass available to older people, mean that the proposed March 2024 fares will have limited impacts on older people, as the concessionary scheme will be available to them after 9am on weekdays and at all other times at weekends and bank holidays. This concession will remain unchanged by this fares revision. 
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.
3.9.    The Disabled Person’s Freedom Pass for disabled people means that the proposed March 2024 fares will not impact some disabled people, as they can travel for free at all times with this concession. Parents of disabled children, and some disabled Londoners who are not eligible for a Freedom Pass, may have their income impacted by barriers to employment, but not benefit from the Freedom Pass concession. The discretionary nature of the eligibility criteria 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. The freezing of TfL fares should reduce barriers to travel for these groups, as it will provide a real-terms reduction in fares.
3.10.    Younger Londoners are more likely to be from a Black, Asian or Minority Ethnic community, and therefore more likely to be experiencing the financial barriers discussed above.  The Zip Card concession – which allows free or discounted travel – and the freezing of bus and many Tube fares limit the negative impact of the proposed March 2024 fare changes on younger Londoners.
3.11.    Londoners on low incomes tend to be women; older, Black, Asian, Minority Ethnic and 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, as well as 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.  The freezing of TfL fares should reduce barriers to travel for low-income Londoners, as it will provide a real-terms reduction in fares.
3.12.    Londoners on low incomes are more likely to use buses than the Tube.  The fares freeze should particularly benefit low-income Londoners whose priority tends to be local trips by bus, as all bus fares are being frozen – resulting in a real-terms reduction in fares. The Hopper fare, which provides unlimited bus and tram travel within an hour for the price of a single fare, continues to help keep the cost of travel low.
3.13.    LGBTQ+ Londoners have reported hate crime as their major concern in relation to transport. The March 2024 fare changes have no specific implications for LGBTQ+ Londoners, except where they also have any of the other protected characteristics set out above.
3.14.    Some people in the seven groups identified above are likely to benefit from free travel concessions or discounted fares related to age, disability status or receipt of income-related benefits. Concessionary fare schemes are being maintained in order to keep public transport accessible to people who face barriers to public transport use. 
3.15.    The concessions available are set out below:
•    children under 11 travel free on all TfL services (subject to a maximum of four accompanying a fare-paying adult on TfL rail services)
•    the 11-15 Oyster photocard provides free TfL bus and tram travel, and reduced fare rail travel, in London
•    the 16+ Oyster photocard provides free TfL bus and tram travel, and half-fare rail travel, in London
•    the 18+ Student Oyster photocard provides reduced-rate TfL Bus and Tram Pass, and Travelcard season travel
•    the Jobcentre Plus Travel Discount Card provides half-price TfL bus, tram and rail travel
•    the Bus & Tram Discount photocard provides half-price TfL bus and tram travel
•    the Veterans Concessionary Travel photocard provides free travel in London
•    the 60+ London Oyster photocard (over-60s up to state-pension age) provides free travel in London (there are restrictions on the use of these concessions between 04:30 and 08:59 on weekdays, excluding bank holidays)
•    the London Freedom Pass (for people above state-pension age, and people with an eligible disability) provides free travel in London (there are restrictions on the use of the older persons’ Freedom Pass concessions between 04:30 and 8:59 on weekdays, excluding bank holidays). 
3.16.    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. 
3.17.    The proposals will not have an adverse impact on TfL’s ability to run and invest in transport services. They have been prepared with due regard for the public sector equality duty.
 

Links to Mayoral strategies and priorities
4.1.    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. These fares proposals 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
4.2.    The Mayor is not required to undertake a consultation in relation to the fare proposals in this decision.
Conflicts of interests
4.3.    GLA officers involved in the drafting or clearing of this Mayoral Decision 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.
 

1. There are no direct financial implications of this decision to the GLA. The impact of freezing TfL-regulated fares will deliver revenue £123m below TfL’s Business Plan assumption. The Mayor, through increasing TfL’s retained business rates allocation from his 2024-25 budget onwards, will make up the shortfall in revenue to ensure TfL’s ongoing financial sustainability. This funding has been made available his draft budget published on 17 January, under the heading “transport innovations”.
2. The 2024 TfL Business Plan was approved by the TfL Finance Committee on 22 December 2023. It included a planning assumption of a four per cent increase in fares in March 2024, which was based on the 30 August 2022 funding agreement with the government.
3. The 2024 TfL Business Plan also assumed that TfL would continue to receive revenue top-up funding from the government under the 30 August 2022 Funding Settlement until 31 March 2024. This revenue top-up funding is based on a passenger revenue scenario set by the government, which assumed that fares would increase by four per cent in March 2024. The funding settlement set out the scenario would be updated in accordance with the actual national rail fares increase and the government has announced national rail fares will increase by 4.9 per cent in March 2024: the revenue scenario will be updated with this figure. The funding settlement also included a provision that if the Mayor chooses to increase TfL-regulated fares by a different amount any shortfall would not be made up by the government.
4. Therefore, for 2024-25, the proposal is (subject to the Mayor’s approval) to freeze TfL-regulated fares set by the Mayor, and to match the revenue shortfall with additional funding from the Mayor’s share of locally retained business rates income over which he has full control.
5. Table 5.1 summarises the revenue yields for TfL based on 2019 demand, assuming that fares and prices rise by an average of 1.7 per cent, which is the net impact of TfL-regulated fares set by the Mayor being frozen and all other fares and prices increasing by 4.9 per cent. In addition to these changes, TfL’s Business Plan forecasts increases to income from continued growth in passenger journeys.

Table 5.1: Revenue yields from the 3 March 2024 fare changes (£m per annum)

Note: Totals may not match sum of individual figures due to rounding

6. All existing concessions will be maintained and are funded in the TfL budget until the end of the current financial year, and in the TfL business plan for 2024-25. This includes the travel concessions for under 18s (on buses and trams) and the 60+ Oystercard which since 2021-22 have been partly funded from a £15 uplift to the Mayor’s council tax precept.

6.1.    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.
6.2.    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, “Equality Comments”. Consideration is given in that section to the likely effects of the fare proposals on protected groups, and the Mayor must have regard to these matters when taking this Mayoral Decision.
6.3.    The Mayor is not required to conduct a consultation in relation to the fare proposals.
 

Annex Table A1: Zones 1 to 6: PAYG rail fares in 2023 and 2024

TfL fares apply also on inter-available TOC services. Through fares apply to journeys involving both TOC and TfL rail services.

Special fares apply on TfL Liverpool St services. TOC fares are shown for information only.

1. Peak PAYG fares apply from 06:30 to 09:30; and from 16:00 to 19:00 Monday to Friday (excluding public holidays).
2. The flat child fare of 90p will apply in 2024, the same as in 2023
3. As in 2023, child fares will be half the TOC adult fare in 2024.
4. The Elizabeth line Heathrow supplements for travel via Zone 1 and not via Zone 1 are set at £7.70 and £5.00 for PAYG; and £5.00 and £3.40 for cash fare travel, same as in 2023

1. Off-peak PAYG fares apply on all rail services at all times other than those indicated above for peak fares.
2. On all fare scales, the off-peak fare is also charged for PAYG journeys starting between 16:00 and 19:00, Monday to Friday, and ending in Zone 1.
3. The flat child fare of 90p will apply in 2024, same as it was in 2023.

Annex Table A2: Zones 1 to 6: TfL and TOC through adult rail cash single fares

¹ Child fares will be half the adult fare in 2024, as in 2023.

Annex Table A3: Zones 1 to 6: Travelcard and Cap prices in 2023 and 2024

1.  Child Anytime Day Travelcard, 7 Day Travelcard and One Day cap prices will be half the adult rate in 2024, as in 2023.

2.  A child off-peak Day Travelcard covering zones 1 to 6 will be £7.90 in 2024, a 30p increase. The child off-peak Oyster cap for Zones 1 to 6 is increased by 10p to £1.80.

3.  Off-peak Day Travelcards are valid for journeys starting after 09:30 between Monday and Friday; and at any time at weekends and on public holidays.

Annex Table A4: Zones 7 to 9:¹ TfL adult PAYG and cash single fares being frozen in March 2024

1.  Special fares apply on TfL Liverpool Street services.

2.  Off-peak times as indicated in notes under Table A1.

Annex Table A5: Zones 7 to 9:¹ TfL child PAYG and cash single fares being frozen in March 2024

1.  Special fares apply on TfL Liverpool Street services.

2.  Off-peak times as indicated in notes under Table A1.

Annex Table A6: Zones 7 to 9: Travelcard prices in 2023 and 2024

1.  Child prices will be half the adult rate in 2024.

2.  Off-peak Day Travelcards are valid for journeys starting after 09:30 between Monday and Friday; and at any time at weekends and on public holidays.

Annex Table A7: Zones 7 to 9: Daily cap prices in 2023 and 2024

1.  Child prices will be half the adult rate in 2024.

2.  The child off-peak cap for zones 1 to 9 increases by 10p to £1.80.

3.  Off-peak times as indicated in note 2 under Table A6.

•    Appendix 1: Direction to TfL 
•    Appendix 2: Fares advice to the Mayor (January 2024)