Fat cat rail bosses have been handed inflation-busting salary hikes despite another year of rising fares and delays on the UK network.

The heads of all main rail company ownership groups have been given huge pay rises, with most of them on seven-figure deals.

The chief of bus and rail giant Arriva received the biggest increase of all current rail bosses in spite of strong criticism for its handling of the Northern Rail franchise.

Manfred Rudhart, CEO of bus and rail giant Arriva, was given an 18 per cent pay rise from £1.1million to £1.34million last year

Arriva has been strongly criticised for its handling of Northern Rail (pictured) and it could now be brought under Government control

According to analysis by The Times, Manfred Rudhart, 54, was given an 18 per cent pay rise from £1.1million to £1.34million.

The revelation comes as Transport Secretary Grant Schapps said Arriva would lose its Northern Rail contract because of its 'nightmare' service.

One passenger group said salary increases for fat cat bosses were 'particularly insensitive' after ticket prices were increased by 2.7 per cent upon people returning to work this week.

Ticket prices for rail commuters have risen by as much as £100 despite trains failing to stay on schedule.

Transport Secretary Grant Shapps (pictured above) has vowed to strip 'unacceptable' Northern Rail of its franchise

Transport Secretary Mr Shapps blasted the poor service Northern Rail offers passengers across England as rail passengers claim fares are rising but 'services don't get any better'.

Northern Rail is one of the operators which has raised its fares and will charge customers an extra 2.5 per cent. The operator was forced to cancel trains on Christmas Eve, which it claimed was down to 'unprecedented' levels of staff sickness and holiday entitlement.

In the year up to the end of September, a massive 34.9 per cent of trains arrived at least a minute late and three per cent were cancelled, according to figures from the Office of Rail and Road.

Despite repeated questions over train performance, tickets prices have increased at double the rate of wage growth in the past decade.

The chief executive of the Go-Ahead Group, the majority owner of Govia Thameslink, received a staggering pay rise of 7.6 per cent last year.

Rail fares have risen by an average of 2.7 per cent despite the fact only 65 per cent of trains arrived on time

The salary of David Brown, 59, jumped from £1.18million to £1.27million.

Meanwhile Matthew Gregory, 49, head of First Group, received a £876,000 package when he was promoted to head of the company last year.

First Group runs four train network including the much-maligned South Western which suffered the longest strike in the history of the railway last month.

It also runs the Transpennine Express where nearly 60 per cent of trains were late in the year up to September.

The Rail Delivery Group, which represents train companies, said: 'Like any industry, we need to pay salaries that let us attract the right talent.'

This morning angry protesters were outside Kings Cross station in London as they protested the rise in fares and held banners which read: 'Stop the rip off rail'.

Protesters pictured outside Kings Cross Station in London this morning as they urge the government to 'stop the rip off rail'

Other commuters said people are becoming 'dissuaded' from using trains because of the fares and that the latest hike was a 'charade'.

According to one campaign group rail passengers across the UK will face 'another decade of misery' as fares are hiked by an average of 2.7 per cent.

Why do rail fares go up every January? Each year the annual increase in rail fares sparks fury across the country as commuters are forced to pay more for journeys that are often delayed. We answer the key questions on the latest price increases. - Why does the cost of train travel increase every year? It has been the policy of successive Governments to switch the burden of funding the railways from taxpayers to passengers. - How much more expensive have train fares become? Office of Rail and Road figures show that between January 1995 - around the time the network was privatised - and January 2019, average fares increased in real terms by 21%. This year's rise is 2.7 per cent. - When are fares increased? Prices rise on the first working day of every new year. - Who decides how much they go up by? Increases in about 45 per cent of fares are regulated by the UK, Scottish and Welsh Governments. The rest are decided by train companies. - Which fares are regulated? Season tickets on most commuter routes, some off-peak return tickets on long-distance journeys and tickets for travel around major cities at any time are regulated. - How is the cap on the rise in these fares calculated? Most rises are pegged to the July Retail Prices Index (RPI) measure of inflation, which was 2.8 per cent. - Where does the money go? The Rail Delivery Group says 98p of every £1 spent on train fares goes towards running and maintaining services. - Is there any way of avoiding the fare rise? Savvy commuters renewed their season tickets in the days before Thursday's increase. - Any other tips on limiting the cost of train travel? Passengers can save money by getting a railcard, travelling off-peak and booking in advance, although these options are not available for many journeys, particularly those made by commuters. Advertisement

Freelance writer and co-founder of the Association of British, Emily Yates, who frequently commutes between Brighton and London said people are becoming 'dissuaded' from using trains because of the fares.

'It feels like Groundhog Day, to be honest, it's a complete charade.

'Every year, we ask for a fares freeze, the Government says no, and the rail industry defends the decision.

'I'm self-employed, I'm a freelancer, so I'm in that demographic of people who are getting priced off the railway.

'I come into London for a meeting or two, travelling at peak times, it costs me £40 - £50 a day, that's not sustainable.

'Brighton is full of freelancers, they're all avoiding using the train at peak times, they're all car sharing.'

Earlier today Transport Secretary Mr Shapps said he 'would not put up with' the consistent delays from Northern Rail.

Speaking on BBC Breakfast he said: 'I've already announced to Parliament that I've kicked off the process called a request for proposal to do exactly that.

'It's completely unacceptable to have a situation where trains almost routinely don't run to a routine, don't run on time. I simply will not put up with that and I've already kicked off that process and I will be saying more about it very soon.'

Some long-distance commuters today saw the annual cost of getting to work increase by more than £100 on Thursday despite fewer than two-thirds of trains being on time last year.

Fewer than half (47 per cent) of passengers are satisfied with the value for money of train tickets, according to the latest survey by watchdog Transport Focus.

Bruce Williamson, of pressure group Railfuture, claimed fares are 'outstripping people's incomes'.

He said: 'Welcome to another decade of misery for rail passengers.

'How on earth is the Government going to meet its climate commitments by pricing people off environmentally-friendly trains and on to our polluted and congested roads?'

Network Rail data shows only 65 per cent of trains arrived at their scheduled station stops within one minute of the timetable in the 12 months to December 7.

South Western Railway passengers suffered from strike action throughout December, while there was major disruption to Northern, TransPennine Express and West Midlands Trains services during much of 2019.

Protesters outside King Cross station this morning had signs made which said 'commuter hell' with burning flames, as well as a sign that said 'cut fares not staff'

Others held signs that read 'passengers before profits bring back British rail'

Rail, Maritime and Transport union analysis of company accounts for train operators and three major rolling stock firms showed they have paid out £4.4 billion in dividends to shareholders over the last 10 years.

Transport Focus director David Sidebottom said: 'After a year of pretty poor performance in some areas, passengers just want a consistent day-to-day service they can rely on and a better chance of getting a seat.'

He urged passengers to 'offset the cost of the fare rises' by claiming compensation for every eligible delay.

Today passengers reacted to the news on social media with some questioning how these companies were able to raise their fares when they are 'continuously delayed'.

Twitter users took to the platform to discuss the hikes, with many users pointing out that wages were not rising in line with the hikes.

One commented: 'Train fares rise: who says that wages must rise every year, nothing will change until wages are curved for ten years.'

On the same point another added: 'What bugs me the most about the rail fare increases in that public workers have had next to no pay rise for the past ten years but have no choice other than to commute, so the constant increase in fares (for a worse service) is a heavy form of additional taxation'.

Some said the increase was 'unbelievable' and highlighted that in some places it would cost people £1 per mile.

Social media users this morning hit back at the rail companies for rising fares across the country

Commuters coming back from the Christmas break today said services are not getting any better despite the increase in prices.

Andrew Jordan, 24, who was travelling through London Bridge station, described the fares rise as 'quite galling for me as a commuter'.

The accountant from south-east London said: 'I understand they've got to go up. They've got fares to cover.

'But the services don't get any better. You'd like to get something for your money.

'In some cases you're paying £1,500 or £2,000 a year. Three per cent on £1,500 is a lot of money.'

Among the routes where the price of annual season tickets has increased by a three-figure sum are:

– Reading to London (up £132 to £4,736)

– Gloucester to Birmingham (up £118 to £4,356)

– Glasgow to Edinburgh via any permitted route (up £116 to £4,200)

Passengers buying tickets for day trips have also been hit by the fares rise.

An off-peak return ticket from Dundee to Edinburgh has increased in price by 50p to £29.40, while an Anytime return ticket from Gillingham to London via the HS1 route is up £1.20 to £45.40.

The increase in around 45 per cent of fares, including season tickets, is regulated by the UK, Scottish and Welsh governments.

This is predominantly capped at July's RPI inflation figure, which was 2.8 per cent.

The Campaign for Better Transport described RPI as a 'discredited and obsolete statistic which should no longer be used'.

It urged governments to base regulated fare rises on the more commonly used CPI measure of inflation, which was 2.1 per cent in July.

Other fare rises are decided by train companies.

As many return to work today following the Christmas break, commuters are expected to face misery with further price hikes (stock image of passengers at London Bridge station)

Robert Nisbet, director of nations and regions for industry body the Rail Delivery Group this morning urged passengers to 'bear with' the situation.

How much has your train company increased its fares by? Most train firms across Britain increased their fares today. Here are the average rises for each rail company: - c2c: 2.6 per cent - Caledonian Sleeper: 0 per cent - Chiltern Railways: 3.0 per cent - CrossCountry: 2.8 per cent - East Midlands Railway: 2.6 per cent - Govia Thameslink Railway (Gatwick Express, Great Northern, Southern and Thameslink): 2.7 per cent - Grand Central: 2.8 per cent - Great Western Railway: 2.7 per cent - Greater Anglia (includes Stansted Express): 2.6 per cent - Heathrow Express: 0 per cent - Hull Trains: 0 per cent - London North Eastern Railway: 1.2 per cent - London Northwestern Railway: 2.8 per cent - London Overground: Vast majority of single fares are frozen but Travelcards and price caps will increase by an average of 2.8 per cent - Merseyrail: 2.8 per cent - Northern: 2.5 per cent - ScotRail: 2.4 per cent - South Western Railway: 2.8 per cent - Southeastern: 2.8 per cent - TfL Rail: Vast majority of single fares are frozen but Travelcards and price caps will increase by an average of 2.8 per cent - TransPennine Express: Did not provide a figure for the average increase across all its fares - Transport for Wales: Fares will be reduced by an average of 1.1 per cent - Avanti West Coast: 2.7 per cent - West Midlands Railway: 2.8 per cent Advertisement

'We know that no-one wants to pay more to travel, and rail companies have, for the third year in a row, held average fare increases below inflation while continuing to deliver investment in new trains and extra services that will improve journeys for customers.

'In 2020, we will work together to run 1,000 extra services a week and roll out 1,000 more train carriages as we replace half the country's train carriages.

'We will also continue to push for changes to regulations that would make rail fares match how people work today and tackle crowding on the busiest long-distance routes.'

He added that the group is 'tackling the pockets of difficulties' and that they are currently also looking at how to improve punctuality.

'We're also putting money in where we think the investment is really required.

'One thousand new carriages will be taking to the tracks in 2020.

'We're also adding extra services. One thousand every week will come on line in 2020.'

He claimed that by the middle of the year, half of the 'entire rolling stock of Great Britain' will have been replaced and that 11,300 services would be added every week day.

The Department for Transport (DfT) is expected to publish a white paper based on the findings of the Rail Review in the coming weeks.

The Government-commissioned review is being led by former British Airways boss Keith Williams, who was tasked with making recommendations on how Britain's railways should be reformed, including in relation to fares.

It was due to be published in autumn 2019 but has been delayed until this year due to the general election.

Mr Shapps said: 'This Government will improve the railway system to ensure the focus is always on putting passengers first.

'This commitment begins with the launch of innovative fares trials, to help explore the benefits and costs of a clearer, more flexible and fairer fares system.'

Today outside Kings Cross station commuters united to protest against the fare increase

Northern Rail 'not fit to run the franchise', says Transport Secretary Grant Shapps Transport Secretary Grant Shapps signalled he wants to remove Northern's franchise, warning he is 'simply not prepared' for the service to carry on as it is. Asked about taking the franchise away from Northern, Mr Shapps told BBC Breakfast: 'I've already announced to Parliament that I've kicked off the process called a request for proposal to do exactly that. 'It's completely unacceptable to have a situation where trains almost routinely don't run to a routine, don't run on time. I simply will not put up with that and I've already kicked off that process and I will be saying more about it very soon.' Pressed if he believes Northern is not fit to run the franchise, Mr Shapps replied 'absolutely the case' and later said: 'I don't think it's right people can't always rely on their train services. I will absolutely bring that situation to an end.' Mr Shapps said his intention is to remove the franchise from Northern. 'In the autumn I wrote to the necessary parties in this with what's called a request for proposal - and that's simply where you say 'Look, I'm going to take action'. 'There are a couple of ways that can go, but one is to strip the franchise, one is to have a short-term contract.' He added that since 2016 people have had a 'nightmare' on that line'. 'I was up there a lot during the election. I saw it first hand. 'The simple answer to the question is yes, it is going to be brought to an end. 'It's partially a legal process but frustrated commuters will not have to wait long.' Advertisement

Mr Williams said his review's recommendations will be aimed at 'creating a system that's built for its passengers'.

He continued: 'The trial launched today will help to shape my recommendations for a fairer, more flexible and modern service, which better reflects the way people want to travel.'

Labour's shadow transport secretary, Andy McDonald, said: 'Today's average fare increase means ticket prices have risen by 40 per cent since 2010.

'It shows that this Government is not serious about supporting either public transport or tackling climate change, road congestion and air quality.

'In contrast, rail fares in Germany were cut by 10 per cent yesterday. Labour pledged to cut rail fares by 33 per cent to encourage people to get out of their cars and get on the train.

'Following years of broken promises and cuts to investment and services, passengers are once again paying more for less under the Tories.'

Commuters that will be hit most by the increased fares include passengers who travel across the TfL network, Merseyrail, which covers Merseyside and the surrounding areas and commuters travelling across the West Midlands.

However there are some rail companies that have not raised prices for commuters.

Those looking to travel on the Caledonian Sleeper won't have to pay any more money for journeys.

This is while prices have also stayed the same on the Heathrow Express and Hull Trains.

Transport for Wales which serves Wales as well as connecting areas such as Crewe and Chester has also had a 1.1 per cent increase in fares.

London North Eastern Railway, which is owned by the Department of Transport, has also pushed its prices up by 1.2 per cent.

Mick Cash, general secretary of the Rail, Maritime and Transport (RMT) union said passengers are suffering because the system 'is failed'.

'Rail privatisation is costly and inefficient, and we need to end it.'

When asked whether higher fares are worth it to invest in rail infrastructure, he added: 'Investing in the railways is always worth it and brings dividends to everyone.

'The problem is a lot of dividends are going to the private shareholders, when they would be better invested in the rail network.'

Looking towards other countries and Germany's state owned rail brand is set to drop its fares by 10 per cent.

All Deutsche Bahn rail fares over 50km will be lowered as part of a government initiative.

Investment in the network is also set to increase, and the company is predicted to spend around £12 billion on new trains.

Rail fare rises across the UK: How much more will YOU be paying? Route Previous price Jan 2020 price Increase Woking to London £3,348 £3,440 £92 Ludlow to Hereford £2,280 £2,340 £60 Brighton to London (any route) £4,844 £4,980 £136 Liverpool to Manchester (any route) £2,620 £2,692 £72 Neath to Cardiff £1,760 £1,808 £48 Maidenhead to London £3,188 £3,276 £88 Whitehaven to Carlisle £1,980 £2,032 £52 Welwyn Garden City to London £3,016 £3,100 £84 Gloucester to Birmingham (any route) £4,238 £4,356 £118 Thetford to Norwich £1,992 £2,048 £56 Tweedbank to Edinburgh £2,820 £2,900 £80 Stonehaven to Aberdeen £1,388 £1,428 £40 Weston-super-Mare to Bristol £2,000 £2,056 £56 Stirling to Glasgow (any route) £2,228 £2,292 £64 Edinburgh to Glasgow (any route) £4,084 £4,200 £116 Alnmouth to Newcastle £2,180 £2,240 £60 Plymouth to Exeter £3,468 £3,564 £96 Caerphilly to Cardiff £1,008 £1,036 £28 Crewe to Preston £4,352 £4,472 £120 Selby to Leeds (any route) £1,608 £1,652 £44