The Rail Delivery Group (RDG), which represents train companies, has announced that it has reached an agreement with Transport for London (TfL) to continue allowing passengers to buy Day Travelcards as part of their train tickets to London.

This ticketing arrangement gives passengers unlimited travel on London Underground, buses, trams and Docklands Light Railway and trains within London’s Travelcard zones, but its future had been in doubt for several months.

It is particularly important to passengers since London Underground closed all its ticket offices in 2015-16.

The RDG has been negotiating with TfL and the Department for Transport (DfT) to agree an arrangement which secures the future of the tickets within the tight budget constraints that the government has imposed on TfL.

The agreement includes a one-off price increase on Day Travelcards for travel from stations outside Zones 1-6 as part of a National Rail ticket. The average 3% rise will be implemented from March 2024 and will be in addition to the general regulated fares increase at the time.

Paul Bowden, Commercial Director at RDG, said: “I think it is a great outcome for customers that we’re able to keep this popular ticket, which offers customers complete travel flexibility in London. There has been a huge amount of work behind the scenes, with the industry working together with a firm focus on customers’ interests”.

Alex Williams, Chief Customer and Strategy Officer at TfL said: “I’m delighted that after close collaboration with the Rail Delivery Group and Department for Transport, we have now been able to find a solution which allows the Day Travelcard to continue to be accepted on TfL services, while still meeting the terms of TfL’s funding agreement with Government.”

Rail Minister, Huw Merriman said: “The Travelcard is an invaluable way of encouraging commuters and visitors to travel into London, hugely boosting the economy in the process – I’m pleased that following a Government intervention, working with TfL and the train operators, we were able to save it.

“Alongside the more than £6 billion we have already given to TfL over the past three years, this is just another way the Government is helping Londoners, its millions of visitors and all those who commute into our capital get around for less.”

The Mayor of London, Sadiq Khan said: “I’m delighted that we have managed to save the Day Travelcard. As part of the Covid-19 financial deal TfL made with the Government, there is a requirement to make savings of £600m. I refused to countenance removing weekly, monthly or season travelcards and today I am pleased to confirm the Day Travelcard is also now safe.

“The offer now on the table saves a much-valued product for visitors to London, while giving TfL a fairer share of ticket revenue.”