Ministers are debating whether to link rail fare increases to a lower rate of inflation as the government tries to bear down on price growth, according to people familiar with the discussions.
The Department for Transport is considering a switch to the Consumer Price Index to calculate how much rail fares rise each year in England rather than the Retail Price Index, which tends to run at a faster pace, the people said.
The discussions come as chancellor Rachel Reeves tries to clamp down on the cost of living in a Budget that is expected to contain cuts to VAT on energy bills and potentially also to levies that fund energy efficiency programmes.