Rail passengers receive major boost as Rachel Reeves announces fare freeze

The freeze applies to regulated fares, which include season tickets, peak returns for commuters and off-peak returns between major cities.

These government-controlled fares cover more than a billion passenger journeys annually in England.

Transport Secretary Heidi Alexander confirmed there would be no increase to regulated fares next year, avoiding what would have been a rise of at least 4.8 per cent based on July's retail price index.

The move is expected to save commuters in excess of £300 annually on expensive routes.

A typical commuter travelling three days a week on a flexi-season ticket would save £315 annually between Milton Keynes and London, whilst those journeying from Bradford to Leeds would keep £57 in their pockets.

Full-time commuters from Canterbury to the capital could have faced their annual season ticket jumping by more than £400, reaching £8,929.

The freeze covers almost half - approximately 45 per cent - of all rail fares in England, with regulated tickets traditionally increasing each January based on the July retail price index plus one per cent, though this formula hasn't always been followed.

Since 2021, fare rises have been implemented in March rather than January.

Train operators remain free to set prices for unregulated fares, including advance tickets and first-class seats, though these typically follow similar patterns to regulated fare changes.

Aslef's Mick Whelan said: "We are pleased that after 14 years of the Tories pricing people off our railways, this Labour government is helping people to commute to work and travel for pleasure."

The Rail Delivery Group said the freeze was "good news for customers."

The fare freeze comes as Ms Reeves prepares to unveil tax increases aimed at closing an estimated £20billion gap in public finances.

She is expected to raise around £7.5billion through frozen income tax thresholds, with additional billions coming from smaller measures including changes to salary sacrifice pension benefits and electric vehicle taxation.

Prime Minister Sir Keir Starmer, who returned from the G20 summit in South Africa on Saturday night, told reporters: "I want the budget to focus on growth and stability; the two pillars that are really important."

The Budget arrives at a crucial moment for both the Prime Minister and his Chancellor, with senior ministers believing it could shape their political futures.

While ministers anticipate negative reactions to tax rises, they hope consumer-friendly measures like the fare freeze will help offset criticism.