London Mayor Defends Above-Inflation TfL Fare Rise as Part of Government Funding Deal

Tube and rail passengers in London are set to face a 5.8 per cent increase in Transport for London (TfL) fares next March, after Mayor Sadiq Khan confirmed the rise as part of conditions attached to a major Government investment package.

The increase, which is higher than the current rate of inflation, will apply across most TfL services—including the Elizabeth line, London Overground and the cost of Travelcards. This means Londoners will not benefit from the recently announced national rail fares freeze.

Under the proposed changes, the price of a peak single journey between Zones 1 and 2—such as travelling from Highbury & Islington to Oxford Circus—could go up from £3.50 to £3.70. Off-peak trips may rise from £2.90 to £3.10. A longer Zones 1–6 journey, like travelling from Uxbridge to Baker Street, could increase from £5.80 to £6.15 at peak times, and from £3.80 to £4.05 off-peak. As TfL adjusts fares in small increments, final prices may not match the overall average exactly.

Mr Khan said the increase was a requirement of the £2.2bn capital funding deal agreed with Chancellor Rachel Reeves during the summer spending review. The agreement requires TfL fares to rise by one percentage point above the Retail Price Index each year until 2030, helping to fund around £450m of annual capital investment.

He described the condition as “fair” and “not unreasonable”, pointing out that TfL had frozen fares for several years before the pandemic and again in the run-up to the 2024 mayoral election.

The rise comes as TfL anticipates earning more than £1bn next year from charges paid by motorists, including the Ulez, congestion charge and the upcoming Silvertown and Blackwall tunnel tolls.

Earlier this year, TfL fares—excluding buses—rose by 4.6 per cent, mirroring national rail increases at the time. However, the Mayor stressed that he is not able to align TfL fares with the national freeze announced by Transport Secretary Heidi Alexander for regulated rail fares from 2026, the first such freeze in three decades.

Speaking at the launch of a new Thames ferry route, he said: “The Government didn’t announce that cities would freeze fares. As part of our deal, they expect us to increase our fares by RPI plus one. That funding helps us invest in the network and keep London moving.”