UK: The Mayor of London has directed Transport for London to give notice that it will withdraw from the Travelcard Agreement. This would mean that Day Travelcards valid across most public transport in London would cease to be valid on TfL-sponsored services from January 2024, effectively ending the product.
Oyster smart card and contactless pay-as-you-go fare caps would be unaffected, as would longer-term Travelcards.
At present, the way revenue from Day Travelcards sales is shared between TfL and National Rail means TfL’s share can be lower than it would be from the same journeys made with PAYG.
Withdrawing from the Travelcard Agreement would mean that TfL would receive the full value of PAYG travel on its services. This would generate £40m/year towards the £500m in extra revenue that TfL is required to identify as part of the extraordinary funding settlements agreed with the government during the pandemic.
TfL’s assessment is that customers in London would pay the same or less by switching to capped PAYG, while people travelling from outside London using combined rail tickets and Day Travelcards may pay more.
‘The Mayor recognises that Day Travelcards are a valuable product, and the Mayor is only considering withdrawing them due to the requirements of government funding agreements to raise very significant amounts of new revenue per annum’, the Mayor’s office said in a statement. It added that the withdrawal notice could be retracted should the Department for Transport and train operators propose a financially acceptable arrangement which allows it to meet the requirements of its funding agreement with government.
DfT told Rail Business UK that ‘transport in London is devolved, and any decision to withdraw from the Travelcard Agreement is a matter for the Mayor.’
For the train operators, the Rail Delivery Group said withdrawing the day Travelcard would result in a loss of convenience, could affect some groups that are entitled to discounts and ‘carries potential economic risks to train companies and the wider London economy’.
An RDG spokesperson said ’we are actively working with TfL to try to find a way for the Day Travelcard to continue’.
Independent watchdog London TravelWatch said 15 million Day Travelcards were sold in 2022-23, and ‘while we understand TfL is facing significant financial pressures, we believe removing a popular, convenient, and inclusive travel option for Londoners and visitors is not the solution’.
