Verified June 2026
UK Fare Freeze Explained: How It Actually Works
What "regulated fares" actually means, how the cap is set, why the government froze it, and what falls outside the freeze.
How the regulated-fare cap works
UK rail fares fall into two categories. Regulated fares sit within a government-set cap on how much they can rise year-on-year. Unregulated fares are set by the train operating company and can move at any time.
Historically the cap was set by formula: RPI (Retail Prices Index) plus or minus an adjustment factor. From 2014 the cap tracked RPI directly. From 2022 the government moved to setting the cap discretionarily, capped below the prevailing CPI inflation rate to soften cost-of-living pressure.
For 2026 to 2027 the cap is 0%. The price of every regulated fare on 1 March 2026 stays the same as it was on 1 March 2025. The cap is binding - operators cannot raise regulated fares above 0% during the period.
What sits in each category
Regulated (in the freeze)
- Standard class season tickets (weekly, monthly, annual)
- Standard class flexi season tickets
- Peak commuter return fares
- Regulated off-peak return fares
- Standard class Anytime tickets
- National Rail through-fares on regulated routes
Unregulated (not in the freeze)
- Advance singles (all operators)
- Long-distance off-peak fares outside the regulated set
- First Class fares
- Standard Premium fares
- Open-access operator fares (Lumo, Hull Trains, Grand Central)
- Eurostar / international rail
- TfL fares (separate framework)
- ScotRail fares (devolved)
- Transport for Wales fares (devolved)
Why the government froze fares
The freeze was announced in the run-up to the 2026 Budget. Three drivers converged:
Cost of living
Five consecutive years of above-CPI fare rises (2021 to 2025) had compounded into a real-terms increase of around 25% on regulated fares. The freeze provides relief without restructuring the cap formula.
Rail reform narrative
The Great British Railways consolidation was being legislated through Parliament. A high-profile freeze supports the political narrative that reform benefits passengers, not just operators.
Modal-shift policy
Government net-zero policy targets a shift from car / domestic flight to rail. Frozen fares strengthen the modal-shift signal without requiring new infrastructure investment.
Fare cap formula history
| Period | Formula / approach | Cap outcome |
|---|---|---|
| 1994 to 1995 | Last fare freeze (BR privatisation era) | 0% |
| 1996 to 2003 | RPI minus 1% | Below inflation |
| 2004 to 2013 | RPI plus 1% to 3% | Above inflation |
| 2014 to 2019 | RPI (no plus) | Tracks inflation |
| 2020 | RPI minus 1% | Below inflation (COVID) |
| 2021 | RPI plus 1% | +2.5% |
| 2022 | Capped formula (CPI move) | +3.8% |
| 2023 | Below-CPI cap | +5.9% |
| 2024 | Below-CPI cap | +4.9% |
| 2025 | Below-CPI cap | +4.6% |
| 2026 to 2027 | Government freeze | 0% |
Sources: Office of Rail and Road historic data; Department for Transport regulated-fare announcements.
Who decides what
| Decision | Authority |
|---|---|
| England regulated fare cap | UK Department for Transport |
| Scotland regulated fare cap | Transport Scotland (Scottish Government) |
| Wales regulated fare cap | Transport for Wales (Welsh Government) |
| Unregulated fare pricing | Individual operator (LNER, Avanti, GWR, ScotRail, etc.) |
| Open-access operator pricing | Operator commercial decision (Lumo, Hull Trains, Grand Central) |
| TfL fare schedule | Mayor of London / TfL Board |
| National Rail Conditions of Travel | Rail Delivery Group (industry body) |
| Railcard product pricing | Rail Delivery Group / railcard.co.uk |