The increase in fares is one percentage point above July’s Retail Prices Index (RPI) measure of inflation, which until 2023 was used by Westminster governments to set the cap on annual rises in regulated fares.
A Budget document published by the Treasury stated that the 4.6% rise will be “the lowest absolute increase in three years”.
Changes to fares will come into force on March 2 2025.
About 45% of fares on Britain’s railways are regulated by the Westminster, Scottish and Welsh Governments.
They include season tickets on most commuter journeys, some off-peak return tickets on long-distance routes, and flexible tickets for travel around major cities.
Train operators set rises in unregulated fares, although these are likely to be very close to changes in regulated ticket prices because the companies’ decisions are heavily influenced by governments due to contracts introduced because of the coronavirus pandemic.
Andy Bagnall, chief executive of Rail Partners, a group representing private sector rail organisations, said: “Government should set fares at a level that will ultimately encourage more people to travel by train in the future, helping to secure the long-term financial sustainability of the sector and capture the wider economic and environmental benefits of rail for the nation as a whole.
“The focus must be on growing passenger numbers, not making current passengers pay more.”
The Budget document also stated that the Government will “agree” to a £5 increase in the price of most railcards “subject to an industry proposal”.
The railcard for disabled passengers will be unchanged.
The Treasury said railcards, which generally cost £30 per year, save users an average of “up to £158” annually.
