George Osborne is to announce a cap on regulated rail fares tomorrow in his autumn statement on the economy.
Peak travel fares and season tickets were due to rise 8.2% in January, which is 3% over the RPI rate of inflation.
The chancellor is expected to announce that this will be restricted to 6.2%, meaning rail fares are still set to rise in the new year.
It is thought the cap will also apply to bus and Tube fares in London.
Passenger groups have called for a reform of the fare structure, claiming that up to half of people’s incomes are being spent on rail fares.
Many train services are so full at peak times that getting a seat is a luxury.
In his report on the railways, Sir Roy McNulty said the cost of running the rail network could be 30% lower than it currently is, in comparison to other European countries.