Most regulated UK rail fares will increase by 4.9% in March 2024, the government has announced. This is below the 9% July retail price index (RPI) figure that usually determines the rise.

The lower cap comes as the government meets its target to halve inflation by year's end. Inflation fell to 3.9% in December, its lowest in over two years.

Fares will rise from March 3 and this year’s rise is below last year's 6.4% rise and continues efforts to limit increases versus RPI.

The government says some rise is needed for the railways' "long-term financial stability" amid ongoing losses and subsidies post-pandemic. Changed travel patterns mean revenues remain below pre-Covid levels when adjusted for inflation.

Transport Secretary Mark Harper said: “Having met our target of halving inflation across the economy, this is a significant intervention by the government to cap the increase in rail fares below last year’s rise. 

“Changed working patterns after the pandemic means that our railways are still losing money and require significant subsidies, so this rise strikes a balance to keep our railways running, while not overburdening passengers.

“We remain committed to supporting the rail sector reform outdated working practices to help put it on a sustainable financial footing.”

Other interventions were also highlighted, like the £2 bus fare cap in England since January 2023. This was due to rise but was extended to keep fares down.

Analysis shows the cap has cut English bus fares outside London by 7.4% year-on-year, and by 11% in rural areas. Over 140 operators have signed up, with government investing nearly £600 million to maintain the cap.