Passengers are being "priced off the railways" with fares going up by an average of 2.3 per cenr next year, public transport campaigners have warned.

The largest rise in three years will take effect from January 2, with travellers already hit by a 23.5% increase in real terms between 1995 and 2016.

Rail minister Paul Maynard claimed the burden of paying for investment in the network is "fairly balanced" between taxpayers and passengers.

The average increase in fares is the highest since January 2014, when prices rose by 2.8 per cent. Tickets went up by just 1.1 per cent in January this year.

Lianna Etkind, of the Campaign for Better Transport, said: "People are now finding themselves priced off the railways.

"The train operating companies and the Government need to work closely together to provide fairer, simpler and cheaper fares making sure people are always sold the cheapest ticket available."

Anthony Smith, chief executive of the independent watchdog Transport Focus, said rail travellers will be "disappointed" by the latest increase.

He went on: "The Government should consider setting rail fare rises around the Consumer Prices Index instead to bring rail fares into line with other recognised measures of inflation."

Rail, Maritime and Transport union general secretary Mick Cash described the fares announcement as "another kick in the teeth for British passengers".

The Transport Salaried Staffs' Association general secretary Manuel Cortes claimed that fares should be frozen while "wages remain static and the quality of our rail service is declining".

Mr Maynard defended the rise, saying that wages are growing faster than ticket prices and the Government is investing over £40 billion into the railways.

He continued: "We are delivering the biggest rail modernisation programme for over a century, providing more seats and services, wi-fi and air conditioning.

"We have always fairly balanced the cost of this investment between the taxpayer and the passenger."

Paul Plummer, chief executive of the Rail Delivery Group which represents train operators, said they "understand how passengers feel when fares go up" and accepted that in some areas they "haven't always got the service they pay for".

He added that around 97p in every pound paid by passengers goes back into running and improving services.

To coincide with the fares announcement the Government revealed that more than 84,000 of Southern rail's long-suffering passengers in the south of England are to be eligible for a "one-off" compensation payment.

The payout will be equivalent to a month's travel in recognition of the huge amount of delays, cancellations and disruption in recent months.

ends