TfL Ref: FOI-2537-1617

Thank you for your request received by Transport for London (TfL) on 16 March 2017 asking for information about fares income. Please accept my apologies for the delay in our response.

Your request has been considered in accordance with the requirements of the Freedom of Information Act and our information access policy. I can confirm we hold some of the information you require.

We estimate that in 2017/18 around £2.1 billion income will come from fares that are controlled by the Mayor and are subject to the fares freeze.  A further £2.4 billion will come from fares set jointly with the Train Operating Companies, which are not subject to the freeze.

It is not clear what information you are looking for in question 3. There are a number of ticketing agreements between TfL and the TOCs relating to Travelcards, Oyster pay as you go and contactless payments. The underlying principle in all cases is that the revenue is due to the party who carries the customer, regardless of who sells the ticket. For example, each party sells Travelcards and will pay over to the other the revenue in respect of usage on the “other” party’s services. Contactless payments, however, work rather differently as TfL collects all payments from the banks and therefore all TOC revenue from contactless payments comes via TfL.

I hope that provides some explanation for what is a complex area. We will be happy to provide further information if you can clarify the information you are seeking. I can confirm that the numbers quoted above relating to TfL fares income are the amounts that TfL expects to receive for travel on its services after the revenue from joint tickets has been apportioned in the way described.

Information on expected changes in revenue from the fares package implemented on 2 January 2017 is published on the Greater London Authority website. Please see the Mayoral Direction on fares and the accompanying policy paper. Information on the increase in revenue attributable to the Mayor’s fares freeze and to the increase required by the TOCs in Travelcard prices and the pay as you go cap is in the formal fares advice we provided the Mayor (see https://www.london.gov.uk/sites/default/files/fares_advice_from_tfl_pdf.pdf, and particularly Table 2 on the last page of it).

The Mayoral direction and all these papers were published when the Mayor signed them and are all available at https://www.london.gov.uk/decisions/md2047-january-2017-fare-changes

If this is not the information you are looking for, or if you are unable to access it for some reason, please do not hesitate to contact me.

Please see the attached information sheet for details of your right to appeal as well as information on copyright and what to do if you would like to re-use any of the information we have disclosed.

Yours sincerely

Lee Hill

Senior FOI Case Officer

FOI Case Management Team

General Counsel

Transport for London