Tory restrictions on rail fare increases are "cold comfort" for passengers struggling under money-raking train operators, Labour and union leaders said yesterday.

The 5 per cent increase above inflation on individual fares allowed to train operators has been reduced to 2 per cent.

But average fares in England will still rise by 4 per cent in January.

Under the Tory plan no regulated fare - including season tickets - can go up by more than 6.1 per cent. The average increase has been limited to 4.1 per cent.

The old system would have seen some 2013 season tickets rise by as much as 9.1 per cent in January 2014.

Transport Secretary Patrick McLoughlin said: "By capping fares we are protecting passengers from large rises at a time when family incomes are already being squeezed."

Despite the Tories' self-congratulatory announcements the restrictions have received a slew of criticism from Labour and the unions.

New shadow transport secretary Mary Creagh said: "This is cold comfort for commuters - it has taken 18 months, delivers fare increases of up to 6 per cent and is too little too late.

"Labour's plans would prevent train companies from increasing fares beyond 1 per cent above inflation."

Rail union TSSA leader Manuel Cortes slammed Mr McLoughlin and pointed out that Britain still has the highest fares in Europe.

He said: "This late running fares review is a slap across the face for millions of passengers who have seen their fares go through the roof under our privately run railway.

"Despite the fact that walk-on fares have risen by over 200 per cent since privatisation, there is no action whatsoever to actually end inflation-plus fare increases.

"He is merely offering to hold passengers' coats while they keep getting mugged every year by the same set of spivs - the private rail firms."

TUC general secretary Frances O'Grady said that, while fare capping was good news for passengers, it was missing the bigger issue.

She said: "Ministers are still failing to deal with the elephant in the room - the market failure of rail privatisation.

"This is wasting millions in taxpayers' money every year and is one of the main reasons why fares have become so eye-wateringly expensive."