Rail fares are to be frozen for the first time in 30 years, the Government has announced.

Ministers said the move will save millions of rail travellers hundreds of pounds off season tickets, peak and off-peak returns between major cities.

Commuters on the more expensive routes will save more than £300 a year.

The Government said the changes are part of its plans to rebuild a publicly owned Great British Railways that will deliver value for money through bringing rail tickets into the 21st century with tap in tap out and digital ticketing, alongside investing in superfast wifi.

The announcement applies to England and services run by English train operating companies.

Chancellor Rachel Reeves said: “Next week at the Budget I’ll set out the fair choices to deliver on the country’s priorities to cut NHS waiting lists, cut national debt and cut the cost of living.

“That’s why we’re choosing to freeze rail fares for the first time in 30 years, which will ease the pressure on household finances and make travelling to work, school or to visit friends and family that bit easier.”

Transport Secretary Heidi Alexander said: “We all want to see cheaper rail travel, so we’re freezing fares to help millions of passengers save money.

“Commuters on more expensive routes will save more than £300 per year, meaning they keep more of their hard-earned cash.

“This is part of our wider plans to rebuild Great British Railways the public can be proud of and rely on.”

Ministers said a typical commuter travelling to work three days a week using flexi-season tickets will save £315 a year travelling from Milton Keynes to London, £173 travelling from Woking to London and £57 from Bradford to Leeds.

The freeze will apply to all regulated fares, including seasons, peak returns for commuters and off-peak returns between major cities, benefitting more than a billion passenger journeys said the Government.

The move was warmly welcomed by rail unions and passenger groups.

Mick Whelan, general secretary of the train drivers union Aslef, said: “We are pleased that after 14 years of the Tories pricing people off our railways, this Labour Government is helping people to commute to work and travel for pleasure.

“This is the right decision, at the right time, to help passengers be able to afford to make that journey they need to take, and to help grow our railway in this country, because the railway is Britain’s green alternative – taking cars and lorries off our congested roads and moving people and goods safely around our country in an environmentally-friendly way.”

Alex Robertson, chief executive of passenger watchdog Transport Focus said: “Freezing fares will be extremely welcome news for rail passengers who consistently tell us value for money is their highest priority, alongside trains running on time. It should also make it more attractive for people to use the train more often or for the first time.

“We’ve always recognised there is a difficult balance to strike in how the railway is funded between fares and public subsidy. That makes today’s announcement particularly welcome.”

Eddie Dempsey, general secretary of the Rail, Maritime and Transport union, said: “This freeze is a welcome first step towards better value fares for passengers and shows that Government plans for public ownership of the railways can deliver real tangible benefits for passengers.

“More affordable fares will encourage greater use of public transport, supporting jobs, giving a shot in the arm to local economies and helping to improve the environment.

“As more passengers return to the railway, it is worth remembering that a well-staffed network with ticket office workers on hand to help people find the best and most affordable tickets, is the best way forward for the rail industry.”

TUC general secretary Paul Nowak said: “The disastrous privatisation experiment left regular train travel unaffordable and unreliable for far too many, but this Government is turning the page on the failed era of privatisation by delivering publicly-owned railways which put passengers above profit.

“This rail fare freeze will be a huge relief to working people who have got used to paying through the nose for a shabby service.”

A Rail Delivery Group spokesperson said: “The Government’s decision to freeze fares is good news for customers. Use of the railway continues to grow year on year, helping people travel to work and connect with family, while supporting a more sustainable future. We want our railways to thrive, that’s why we’re committed to working with Government to ensure upcoming railway reforms deliver real benefits for customers.”

The Conservatives welcomed the freeze but said the Government was “late to the platform”.

Shadow transport secretary Richard Holden said: “In Government, the Conservatives kept fares on the right track with below-inflation rises and consistently called for no further hikes to protect hard-working commuters.”