New analysis has revealed that the same private rail companies that are putting fares up by 3.1 per cent today have paid out over £1 billion in dividends to shareholders in the last six years.
The TUC finding show that there has been significant payouts by private firms running British rail networks, despite punctuality hitting a 13-year low.
Rail fares have increased by 36 per cent since 2010 as train companies rake in huge profits to pay inflated dividends.
At the same time wages will grow by just 2.5 per cent in 2019.
It will be the ninth time in the last ten years that rail fares have risen by more than wages.
TUC General Secretary Frances O’Grady said: “The most reliable thing about our railways is the cash that goes to private shareholders each year. But with the most expensive fares in Europe, that can’t be right. It’s rewarding failure and taking money away that should be invested in better services.
“It’s time to take the railways back into public hands. Every penny from every fare should go back into the railways. The number one priority should be running a world class railway service, not private profit.”
Abd Unite national officer for the rail industry Harish Patel added: “Given last year’s rail timetable chaos, presided over by the hapless transport secretary Chris Grayling, there should be no rail fare increases for hard-pressed travellers in 2019 – fares should have been frozen. The 3.1 per cent rise is an insult.
“As usual, the real ‘winners’ are the greedy shareholders of the privatised rail companies that have gobbled up more than £1bn in ill-gotten dividends in the last six years – money that could have gone towards freezing fares and boosting rail investment.
“Every day the case for the public ownership of the rail industry grows stronger, especially after the woeful performance of 2018.”
RELATED
London is open says Mayor, Tory Brexiteer calls NYE fireworks “betrayal of democracy”
Since you are here
Since you are here, we wanted to ask for your help.
Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.
Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.
If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.
To donate or subscribe to The London Economic, click here.
The TLE shop is also now open, with all profits going to supporting our work.
The shop can be found here.
You can also SUBSCRIBE TO OUR NEWSLETTER .
