Rail companies have been accused of “rewarding failure” after paying out £184 million to shareholders last year as the network was crippled by the chaotic introduction of new timetables.

Analysis by the Trade Unions Congress (TUC) shows that companies collectively handed over more than £1 billion to shareholders over the past six years. The TUC claimed that money that should be spent on improvements to the rail network was being diverted to shareholders. Frances O’Grady, TUC general secretary, said: “It’s rewarding failure and taking money away that should be invested in better services.”

However, rail bosses said the payouts represented less than 2 per cent of the industry’s total income. The government has also received a net contribution from train operators for the past eight