Train fares in Britain will go up by an average of 3.4 per cent in the new year.

The increase, to take effect from January 2, is the biggest since 2013 and covers regulated fares like season tickets and as well as unregulated fares including those bought on the day of travel.

The Rail Delivery Group, which brings together train operators and Network Rail, acknowledged it was a “significant” rise, but said more than 97 per cent of fare income went back into improving and running the railway.

The RMT union called it a “kick in the teeth” and Caroline Lucas MP said: “This inflation-busting fare increase is a body blow to hard pressed passengers.

“Every year we see the privatised railways deliver ticket price increases, while the cost of driving continues to plummet in real terms.

“It’s clearly time for publicly owned railways - and for the Government to stop these outrageous price increases. Passengers deserve better than this privatisation disaster.”