UK: A pilot scheme which removed peak fares on ScotRail services in favour of offering cheaper off-peak fares all day is to end, after analysis found only ‘a limited degree of success’ in achieving modal shift from cars
The Scottish government spent £40m subsidising the ScotRail Peak Fares Removal Pilot. The scheme aimed to improve awareness of rail as a viable travel choice, enable more people to travel more often and reduce private car use.
It initially ran for six months from October 2 2023 and was then extended until September 27 2024, when it will now end.
Mixed results
Analysis published by Transport Scotland found the pilot was ‘somewhat successful’ in increasing awareness of rail and improving access, but had ‘minimal impacts’ on overall car travel and tended to benefit those on higher incomes within the Central Belt region.
The ‘vast majority’ of the increase in passengers came from existing rail users making more journeys. There were regional variations, with the greatest impact on Edinburgh suburban services and the Edinburgh to Glasgow routes. There was some evidence that the pilot encouraged commuting from smaller towns into larger population centres, but this was localised and ‘may be better addressed by looking at individual fare levels’.
Value for money analysis suggested that the removal of peak fares had a benefit:cost ratio of between 1·2 and 1·5. Taking into account the above-average relative incomes of those benefiting reduced this to 1·0 to 1·25.
Level of subsidy ‘cannot continue’
‘The pilot primarily benefited existing train passengers and those with medium to higher incomes’, Cabinet Secretary for Transport Fiona Hyslop said on August 20. ‘Although passenger levels increased to a maximum of around 6·8%, it would require a 10% increase in passenger numbers for the policy to be self-financing.’
She said ’this level of subsidy cannot continue in the current financial climate on that measure alone’.
Instead a there will be a 12-month discount on all ScotRail season tickets, and Flexipasses will be permanently amended to allow 12 single journeys for the price of 10 within 60 days. Super off-peak tickets will also be reintroduced.
