Rail fares are set to increase by 3.5 per cent in January 2015, it has been revealed.

Average rail fares rise by one per cent above the level of inflation. According to the Office for National Statistics, the Retail Price Index was 2.5 per cent last month. 

However, some fares could jump by as much as 5.5 per cent, as certain train operators are able to make use of a 'flex' rule that means prices on some routes can be increased by an additional two per cent.

Labour criticised the fare rise, with shadow transport secretary Mary Creagh stating that her party will act on the issue. It is considering abolishing the flex rule, in addition to other measures aimed at preventing excessive rises.

"We fully recognise there's more to do to bring down the cost of rail travel in Britain," said transport secretary Patrick Mcloughlin. "But we need to do it responsibly and we can't spend money we don't have," he said.