Could rail fares be about to get cheaper? Great British Railways should make ticket costs honest, says watchdog

It’s all change for Britain’s trains as the launch of Great British Railways (GBR) inches closer. 

The government-owned train company, which is due to launch in the coming months, will run most of the rail infrastructure and passenger services across Britain. 

The rail regulator, the Office for Rail and Road (ORR), has today set out proposals to keep the ticket market fair once GBR takes over. 

So what will public ownership of the railways mean and what will it mean for ticket prices? 

Why is GBR launching? 

In 1993, former prime minister John Major privatised Britain’s railways. Rising ticket costs, frequent delays, cuts to services and timetable chaos have ensued in the years since, with paying customers bearing the brunt of the turmoil.

In 2024, research by campaign group Transport & Environment found that ‘travelling by rail in the UK is particularly costly’, adding that high infrastructure costs and ‘private monopolies’ had ‘a responsibility’ for this.

The research found that Great Western Railway fares were two-and-a-half times higher than the average across European Union and Swiss operators for routes of similar lengths. 

In 2024, Transport & Environment warned there was ‘no correlation’ between high fares and better performance in areas such as punctuality and passenger experience. 

In 1993 former prime minister John Major privatised Britain’s railways

In May 2021, former Conservative transport secretary Grant Shapps announced GBR would replace what he called an ‘overcomplicated and fragmented’ system. 

Labour’s manifesto also vowed to put commuters ‘at the heart of the service by reforming the railways and bringing them into public ownership’.

It said it would do this as contracts with existing operators expire or are broken through a failure to deliver, ‘without costing taxpayers a penny in compensation’.

When is GBR launching? 

Labour said ‘bold rail reforms’ – namely bringing them into public ownership – would make trains more reliable, punctual and cheaper to run. 

The government wants to develop GBR as a single unified train operator incorporating the nationwide infrastructure provider Network Rail. However, this aim remains some way off. 

GBR will oversee all rail transport in the UK and eventually operate all passenger services by the end of 2027. 

Chiltern Railways, Govia Thameslink Railway, West Midlands Trains, South Western Railway, Greater Anglia, c2c, Northern, TransPennine Express, Southeastern and LNER are already managed by Department for Transport (DfT) Operator Limited. Great Western Railway will be renationalised on December 13. 

Labour also plans to change the livery on all services as they come under GBR control. 

The changes mean a large number of railway staff will transfer to the government’s own train operating firm. GBR is expected to have around 100,000 staff in total, making it one of the UK’s largest employers.

What will it mean for ticket prices?

Rail fares will not change imminently but are expected to rise next year. 

While the government has frozen regulated rail fares until March 2027, including season tickets and off-peak returns, operators are free to set prices for unregulated fares. They usually rise by similar amounts. 

The most recent rail fare increase, in March 2025, was 4.6 per cent. Typically, rail fares increase in January, based on the July rate of the retail price index plus 1 per cent, but this formula has not always been followed. 

Great British Railways will sell rail tickets, set prices and manage rail timetables 

At the time of writing, travelling from London Euston on the 8.33am train to Manchester Piccadilly and returning on the same day on the 4.06pm train back would cost £205.50 for customers without a railcard. 

The current fare freeze applies to rail journeys in England, and to England-based train operating companies. 

Tickets in Wales and Scotland are dealt with by the national governments there. 

In the future, under GBR, walk-on fares will be set by the government and season ticket prices will be capped. But private rail businesses will have ‘more commercial freedom’ on long-distance fares, the DfT previously said.

What will GBR mean for ticket platforms like Trainline? 

In 2021, shares in Trainline nosedived after the plans for GBR were first announced, and it emerged that the new state-owned body would sell tickets. 

Eventually, GBR will sell tickets via a website and app, in competition with multiple firms, including Trainline. 

Currently, people can buy rail tickets from companies online and at train stations, and also via National Rail Enquiries. 

GBR’s online ticket shop will replace the 14 websites and apps of train firms contracted by the DfT. 

Why is the regulator looking to step in?

As well as selling tickets via a GBR website and app, GBR will have substantial control over the operations of railways and fares in the UK and receive about £14billion a year in public funding. 

That has meant it has come under intense scrutiny as train operators look to cut services. 

The Campaign for Better Transport has said it is concerned GBR will look to improve punctuality and reduce subsidy by axeing trains. 

In May 2026, Avanti West Coast said it was proposing removing some services with lower demand in response to a request from the DfT to cut costs. 

Some are concerned GBR will have a seismic monopoly operating railways across the UK.   

Today, the ORR has announced it is consulting on new rules to make sure GBR does not have undue advantage. 

The ORR, the UK’s rail regulator, has launched a consultation on a draft code of practice to keep the online rail ticket market fair once GBR takes over.  

The draft Retail Code of Practice would require GBR to give independent online retailers fair, transparent and non-discriminatory access to fares, products, systems and related services. It would also prevent GBR from giving its own retail arm an undue advantage. 

In future, GBR will also be subject to competition law, which prohibits excluding competitors, distorting the market or abusing a dominant position.

Stephanie Tobyn, ORR’s director of strategy, policy and reform, said: ‘Passengers should have confidence that the rail ticket market works fairly, whichever retailer they choose to buy tickets from.

‘GBR will have an important role in shaping the future retail market, while also selling tickets itself. 

‘Our proposed Retail Code of Practice will provide enforceable safeguards to help maintain a fair and open online retail market, supporting passenger choice.

‘We’ve already engaged with representative organisations and key stakeholders, and now we want to hear from everyone with an interest in the future online rail retail market. 

‘Their views will help us ensure the Retail Code of Practice is effective in supporting a fair and open market.’

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