Train companies will be forced to pay compensation to passengers who have received poor service as a new rail ombudsman is being established.

Later this year all train companies will be made to sign up to the new rail ombudsman scheme which will handle complaints from passengers, the Office of Rail and Road has announced.

At present more than half of passengers who complain to a train company are unsatisfied with the resolution, official data shows.

If they are unhappy with the outcome of a dispute passengers can contact the transport watchdog, Transport Focus, or take the company to the small claims court.

The ORR said the change was necessary to assure passengers that complaints would always have independent scrutiny, with the hope that satisfaction levels will rise as a result.