Why London’s tube fares are set for massive above-inflation price hikes every year until 2030

Earlier this year a report claimed that London’s public transport had officially become the most expensive in the world. And, well, the numbers seemed to back that up. In March the capital’s tube and train fares rose, with the daily cap for zone 1 travel increasing by 40p and the cap for travelling across zones 1, 2 and 3 hiked to £10.50.

If Londoners were hoping for a reprieve for their wallets from tube fare increases next year, this week we bring bad news. The Standard has reported that London mayor Sadiq Khan has been told that the capital’s transport fares should rise every year until the end of the decade. 

Transport Secretary Heidi Alexander has reportedly told Sir Sadiq not just to increase fares, but to hike them above the rate of inflation. An edict apparently states that TfL should increase prices by the RPI rate of inflation plus one percent in 2026, 2027, 2028 and 2029. 

So, why are fares going up, and why are they increasing by so much? Earlier this month the Chancellor said that TfL will receive nearly £2.2 billion to spend on infrastructure over the next five years. Put plainly, in return for this cash TfL is being told to hike its prices. 

Alexander wrote: ‘The funding in this settlement is provided against an assumed scenario that overall TfL fares will rise by the value of RPI+1 for each year of this settlement.’

This is the second year in a row that TfL has been told to increase its prices by the national government. The previous transport secretary Louise Haigh told Sadiq Khan to increase prices in line with national rail fare rises, which he did in March 2025. 

How much are London’s tube fares going up?

Exactly how much London’s transport fares will go up hasn’t been confirmed, as RPI varies. Currently RPI sits at 4.3 percent, though on average it has been much lower than that over the last decade or so.

Assuming an RPI inflation rate of around 3 percent, the daily cap for travelling between zones 1, 2 and 3 could cost more than £11.80 by 2029.

The next TfL fare hike is not expected until March 2026, but may be announced sooner. Watch this space for updates.

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