The government has announced a freeze on regulated rail fares for the first time since the mid-1990s, with the measure set to be confirmed in next week's Budget.

The freeze will apply to all regulated fares across England, including season tickets, peak return fares for commuters, and off-peak returns between major cities. More than a billion passenger journeys are expected to benefit from the decision.

Commuters on busier and more expensive routes stand to make the largest savings. Those travelling three days per week using flexible season tickets could save £315 annually on the Milton Keynes to London route, £173 on Woking to London, and £57 on Bradford to Leeds.

Chancellor Rachel Reeves and Transport Secretary Heidi Alexander said the move aims to ease pressure on household finances, noting that transport costs account for 14 percent of household spending. The government also suggests the freeze will help limit inflation by holding down a significant component of everyday costs.

The announcement forms part of broader plans to establish Great British Railways, a new publicly owned company that will manage both tracks and trains. The reform is intended to end fragmentation in the rail system and improve value for money through modernised ticketing, including tap-in-tap-out systems and digital tickets.

Rail fares typically increase annually, often tied to inflation measures. The freeze represents a departure from this pattern and will be formally announced when the Chancellor delivers the Budget.