The Chancellor of the Exchequer, George Osborne, has announced the government's plans to freeze rising rail fares for another year. 

It has been announced the suspension on rail fares shall remain for a further 12 months in a bid to assist families and improve the cost of living. 

The announcement states rail operating companies will no longer be able to hike prices up by more than two per cent and no regulated fares will rise higher than 2.5 per cent in 2015. 

Until recently, companies had the option to rise individual train prices by as much as 5.5 per cent, however this has been capped at inflation for the second year running. 

The freeze in rising costs will reduce the cost of one billion journeys made by rail passengers in England each year and around a billion more made on the tube. 

Speaking about the move, the chancellor said: "Support for hardworking taxpayers is at the heart of our long term economic plan. It's only because we've taken difficult decisions on the public  finances that we can afford to help families further."

Commuters are expected to save around £75 on season tickets over 2014 and 2015.