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‘Club 26-30’ railcard: how will the new discount scheme work?

A new railcard is set to transform British travel for millions of millennials, offering one-third off many rail journeys. On an off-peak return from Manchester to London normally costing £83.90, the saving will be £28.50 - saving almost the cost of the card on one journey.

The 26-30 discount card is expected to become available nationwide early next year, cutting train fares by one-third for people born between 1988 and 1992 who choose to sign up.

A trial in the Greater Anglia area will begin in December this year, with 10,000 railcards on offer to eligible people living in the area. Another 10,000 cards will be issued nationwide in the New Year.

News of the initiative emerged last month on a rail forum, discussing a leaked internal document from the Rail Delivery Group.

A spokesman for the group, which represents train operators and Network Rail, told The Independent: “We can’t comment on this at the moment, but we are always carrying out research and working with the train companies to develop new offers that make leisure travel easier, and better value for money.”

However, based on experience and industry contacts, it is possible to draw some conclusions about how the discount scheme will work.

Q What railcards are available at present?

The main widely available national cards are 16-25 for young people; Family & Friends for adults and children travelling in a group (at least one of each); Two Together for two named (and photographed) individuals making the same journey; and Senior for travellers aged 60 or over.

They are supplemented with limited eligibility cards such as the Disabled Person's Railcard, the Gold Card for annual season ticket holders and the HM Forces Railcard, as well as numerous cards for specific areas, from South-East England (Network Card) to the Esk Valley Railcard.

For the average adult aged 26-59, though, there is no straightforward way to secure a discount on rail fares.

Q What is proposed, and what will it offer?

A new 26-30 Railcard, extending most of the benefits of the 16-25 scheme to an older age group.

The basic deal is a saving of 34 per cent on many rail tickets. The main restriction is aimed at excluding the card’s use for most commuter journeys in the morning rush hour. While discounts are available on Advance fares without time limits, Anytime and Off Peak tickets are subject to a minimum fare of £12 from Monday to Friday (except public holidays).

For 16-25 Railcards that restriction is lifted in July and August, the idea being to encourage students and young people to travel more by train at a time of year when rush-hour trains are less crowded. But train operators are insisting the minimum fare applies year-round for the 26-30 card, because most of the people signing up for it will be in full-time work.

It is possible the minimum fare will rise to £15 for the 26-30 Railcard.

Q Why are cards being issued only in one region initially, and in such low numbers?

The Greater Anglia train operator is trialling the railcard from December, but to start with only 10,000 will be on offer. Though the card is available only in East Anglia, it will be valid for travel nationwide.

Demand is likely to be strong from travellers in Suffolk and Norfolk, who are currently outside the Network Card area; and from passengers from outside the region who work around the geographical limits to benefit from cheaper fares. Demand for the tranche of 10,000 railcards to be released nationwide early in 2018 will be even more intense.

The train operators are concerned about the risk of an unexpectedly strong uptake among commuters and business travellers. By capping the number of cards sold and restricting the availability, they can limit the possible drop in revenue. In addition, there could be a surge in 26-30 year olds moving to rail for commuting because of the card, adding to overcrowding on peak trains.

Q Will it be an actual card?

Not initially. The first versions will be available on smartphone only via the Railcard app on Apple IOS or Android. Train operators are increasingly offering mobile ticketing, and it makes sense for the card and the ticket to be held in the same smartphone ticket wallet. But train operators are concerned about everything from a higher-than-expected incidence of flat batteries and lost phones to opportunities for fraud.

Once the rail industry assesses whether a virtual railcard is feasible, a decision will be taken on whether to offer physical cards instead or as well. There will also be pressure to make the card as inclusive as possible, by ensuring it can be bought at rail stations.

Q What proof will I need of my age?

Your passport or driving licence. If you have neither, you will need to supply a birth certificate and additional evidence.

Q How much will it cost?

Probably £30, the same as most other national railcards. Unlike the other major railcards, though, there will be no three-year option – at least initially.

Q I’m nearly 30 – will I have to wait until I am 60 before I qualify for a railcard?

Not necessarily. It is likely that the scheme is likely to emulate the current option for 25-year-olds: buy a railcard the day before your 26th birthday and you can continue to use it for another 12 months. So someone who turns 31 on 1 July 2018 will be able to buy a card on 30 June and use it until 29 June the following year.

In addition, a 55-plus card is believed to be under discussion, with many of the benefits of the Senior Railcard.

Q Why has the 31 to 59 age range been excluded from cheap tickets?

Many of them already use Family & Friends or Two Together railcards. (The train operators really like these, because they are rarely used for work-related trips.) But the 26-30 card is seen as a trial for a wider National Railcard scheme along the lines of the existing Bahncard scheme in Germany, where discounts are given to holders of any age in a bid to lure people off the autobahn and on to Deutsche Bahn.