Tube fares could rise and fall in line with post-pandemic demand in a bid to get more Londoners travelling, Sadiq Khan has suggested.
The mayor confirmed that so-called “dynamic pricing” was under consideration by Transport for London - but said there may be insufficient time to introduce it as part of the annual fares rise.
TfL’s “working assumption” is a 4% rise. But TfL fares have to increase by at least by the same amount as commuter rail fares to prevent TfL losing money on Travelcard tickets, which can be used on trains, buses and the London Underground.
Passenger numbers on the Tube are highest on Thursdays, at about 87% of pre-pandemic levels, but are lower on Mondays and Fridays – reflecting hybrid working patterns.
Tube passengers currently pay peak fares between 6.30am – 9.30am and 4pm – 7pm on weekdays, with all other times charged at lower off-peak rates.
Asked by Caroline Pidgeon, a Lib-Dem member of the London Assembly, about the use of dynamic pricing from March or in future years, Mr Khan said: “Those are some of the options that TfL are looking into.
“I have not made a decision in relation to what is do-able in the short period of time we have got [to set the fares].
“We are getting numbers back but you are right to look into the question of times of day, parts of London and so forth.”
He told the assembly’s budget committee that he was also “looking into” peak and off-peak fares. London TravelWatch, the passenger watchdog, said keeping bus fares as low as possible should be a priority.
Last year TfL fares rose by an average of 5.9%. Bus fares increased by 10p to £1.75 but remain the cheapest in the country.
London TravelWatch said: “If TfL does match the national rail fares hike, we believe it’s very important that bus fares are kept as low as possible (even if some other modes are increased).
“That’s because more people use the bus every day in London than any other type of transport, and they’re most used by lower income Londoners. Further price hikes would not be fair and might deter people from using public transport.”
TfL does not expect passenger numbers to return to pre-pandemic levels for another three years.
It predicts that it will take until 2026/27 for there to be four billion trips a year, despite the success of the Elizabeth line in attracting new journeys.
At present, demand for TfL services is about 90% of pre-pandemic levels – though 4.05m journeys were made on the Tube on Thursday November 23, the biggest total for four years.
Prior to the pandemic, the Tube carried the highest number of passengers on record in December 2018 when 5,031,000 journeys were made in a day.
TfL expects to make its first-ever “operating surplus”, of £144m, in the current financial year, rising to almost £500m a year by 2026/27, due to higher fares revenue, property income and savings. This money is reinvested in transport schemes.
TfL’s fares income is expected to increase by 11 per cent in 2024/25 to £5.6bn, driven by a 6% increase in demand and a five per cent rise in the amount paid by passengers, including a crackdown on fare evasion.
