I know that families and working Londoners who have helped the drive the economic recovery still face real pressure over the cost of living and so I've decided to keep fares in line with RPI and therefore freeze them in real terms for next year.
The Mayor of London Boris Johnson today delivered on his commitment to bear down on transport costs in the Capital by confirming that fares for Transport for London (TfL) services will be frozen in real terms in 2014, with an average rise of RPI only (3.1 per cent) from 2 January and a freeze on many fares at 2013 prices.
TfL is also setting out this week how it is continuing to invest to modernise and improve London's transport network, to support jobs, more homes and economic growth in the capital and across the UK.
A revised TfL Business Plan to 2020/21, following the funding settlement agreed with Government earlier this year, will be published shortly and is due to be considered by the TfL board at its meeting on 11 December.
In recognition that transport costs are one of the biggest pressures on working Londoners and household budgets, the Mayor has decided to raise fares by an average of RPI only for 2014, which is a freeze on fares in real terms.
Limiting the average fare increase to RPI only, rather than RPI+1 per cent, has been made affordable through a combination of measures including TfL's savings and efficiencies programme and commercial revenue targets.
Mayor of London, Boris Johnson, said: 'I have always said I was determined to bear down on fares, while ensuring that we can still invest properly in a transport system that is critical to our city's success.
'This package, which has been made possible by the continuing delivery of efficiencies across TfL, ensures that fares remain affordable and that we have the level of funding we need to continue to improve the network and deliver even better, more frequent services for everyone.
'I know that families and working Londoners who have helped the drive the economic recovery still face real pressure over the cost of living and so I've decided to keep fares in line with RPI and therefore freeze them in real terms for next year.'
TfL's revised Business Plan will set out how £16bn of efficiencies and savings are being made across TfL to support billions of pounds of investment in transforming the Tube, completing Crossrail and enhancing the bus, London Overground, DLR and Tramlink services while continuing to build safe and attractive cycling infrastructure, improve the roads, high streets and neighbourhoods and tackle air pollution.
Some of the key improvements which will be delivered over the next ten years include:
London's Transport Commissioner, Sir Peter Hendy CBE, said: 'The investment made in London's transport network in recent years means we are now carrying more customers, more safely and reliably than ever before and continue to deliver improvements on the road network for all users.
'We will continue to invest to support access to jobs, more homes and economic growth in London and across the UK.
'The Mayor has been able to bear down on fares in 2014 as a result of the more efficient delivery of improvements and services by TfL.
'With London's population set to grow from 8.4m today to around 10m by 2030, we will continue to build on our track record of modernisation and improvement on London's transport network to ensure it is properly equipped for the challenges that lie ahead.'
Because Travelcard season tickets cover both National Rail (NR) within Greater London and TfL services, and revenue is therefore split between the different operators and TfL, the weekly, monthly and annual Travelcards will rise by 4.1 per cent on average (RPI+1) to meet the NR fares rise of RPI+1 per cent.
The off-peak One Day Travelcard range, mostly used by visitors and only available on paper tickets, will be simplified in 2014 - only the Zones 1-6 off-peak ticket will be available and the cost of it will be frozen.
The Anytime One Day Travelcards will increase in line with NR fares by 40p for Zones 1-2 and 1-4 and 60p for zones 1-6.
The Oyster PAYG one day caps, which offer better flexibility than an upfront purchase of a Travelcard, will be frozen for the second year running to improve value for money for part time commuters.
Most Oyster pay as you go fares for the Tube, DLR and London Overground will remain frozen at 2013 prices next year. Only three fares, the Zone 1 peak and off-peak single tickets and the Zone 1-2 off-peak single ticket, will increase by 10p. Cash single fares, which are only used by around one per cent of Tube users, will increase by 20p.
To help hold down transport costs for part-time workers and other commuters there will be no increase to the TfL Oyster pay as you go daily caps for a second year running, which is expected to benefit around 200,000 people a week.
On London's buses, both the daily price cap and the cash fare for a single bus journey will be frozen.
The pay as you go fare for Oyster and contactless payment card users will rise 5p to £1.45.
TfL has recently consulted on proposals to remove the option to pay by cash on all TfL bus services in mid-2014.
The consultation has now closed and a decision will be made by the Mayor later this year.
All free and concessionary travel for young, elderly and disabled Londoners, as well as Veterans and members of the Armed Forces, has been protected in full.
Further details of the new fares are set out in the tables below, but the key elements of the January 2014 fares package are: