Rail passengers face fare rises of more than £200 after train operators confirmed price increases as Chris Grayling said union greed was to blame for the hikes.

It was announced in August that rail fares in much of the UK would increase by as much as 3.2 per cent in January and on Friday train operators will publish the impact on specific services.

The fare rises have reignited a war of words between the Government and unions, with the Transport Secretary insistent the only way for fares to be reduced is if rail workers accept lower pay rises.

Anthony Smith, chief executive of watchdog Transport Focus, said "the rail industry cannot be short of funding" as passengers contribute more than £10 billion a year.

He went on: "When will this translate into a more reliable railway and better value for money for passengers?"

Mr Smith called for a "fairer, clearer fares formula" based on the CPI measure of inflation rather than the "discredited" RPI figure.