Travel fares in London will increase in 2010.

The Mayor of London, Boris Johnson, has announced that London travel fares will rise in 2010, along with a 25% increase to the congestion charge.

Oyster card pay-as-you-go bus journeys are to rise from £1 to £1.20, the Oyster pay-as-you-go Zone 1 tube fare will increase from £1.60 to £1.80 and the price of a seven-day bus pass will jump from £13.80 to £16.60.

Overall, bus fares are to go up by 12.7% and Tube fares will rise by 3.9%. The Mayor said he had protected free and concessionary fares for London’s elderly, young people and those on low incomes – meaning that 40% of bus passengers will continue to travel free or at a substantial concessionary rate.

He also set out changes to the operation of London’s Congestion Charge Scheme, including plans to make it easier to pay and avoid penalty charge notices through the introduction of payment on account in 2010. However the standard charge of £8 will rise by 25% to £10.

Making clear that his approach to fares and investment would bring stability to TfL’s financial position, Mr Johnson said: “Nobody wants to make an announcement like this, especially when Londoners are feeling the effects of the recession. It is not a decision that I have taken lightly.  Indeed, I have been persuaded of the need for fare rises only after ensuring that every efficiency possible, at least £5 billion in total, is being made at TfL.”

It is understood that the higher fares will raise an extra £125?million a year, and the increase in the congestion charge a further £15 million – but TfL will lose £50?million when the western extension is scrapped.

The cuts to services and changes to TfL priorities will save £1.36?billion over the next three years, however it is looking to achieve £5?billion of savings overall.

The price rises on public transport will take effect in January. For more information, click here. 

Earlier this week, the RMT announced plans to ballot its London Underground (LU) members on possible strike action over the continuing dispute surrounding pay – click here for the story.