Fare evaders cost the system about £1.3m in lost revenue annually
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Transport bosses are introducing a new scheme in a bid to tackle fare evasion on Gtr Manchester's Metrolink system.
The on-the-spot charge of £10 is being replaced by an escalating standard fare aimed at targeting repeat offenders.
Proof of identity will be requested on all occasions where a valid ticket cannot be produced and stored on a database for future reference.
The new system, announced by Greater Manchester Passenger Transport Authority (GMPTA), begins on Monday.
It has been developed by GMPTA in partnership with Serco Metrolink which operates and maintains the system.
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GMPTA said fare evaders cost the system about £1.3 million in lost revenue every year.
Councillor Roger Jones, chairman of GMPTA, said: "We are losing a massive amount of money, which could be reinvested back into Metrolink, as a result of people who think they can get away with not buying a ticket."
In future, passengers caught without a ticket for the first time will be charged a standard on-the-spot fare of just £10 so people who make a mistake are not heavily penalised. The fare will rise to £15 for those who choose to pay it within 21 days.
Passengers who commit a second offence will be asked to pay a £20 on-the-spot fare or £30 within 21 days.
A third offence will result in a £40 on-the-spot fare or £60 if it is paid within 21 days. Offenders caught on a fourth occasion will face an £80 fare or prosecution.
Anyone who fails to pay the standard fare within the specified time will be liable for prosecution.