Rail commuters face an increase in season ticket prices of 1.6 per cent despite people being urged to return to workplaces.

The cap on the annual rise is linked to inflation figures, which were announced by the Office for National Statistics on Wednesday.

Fares went up by 2.7 per cent last January, and could be set for another rise next year now that inflation figures have been announced – although there has been speculation that ministers could delay next year's rise amid low passenger numbers.

At present, a season ticket between Newtown and Shrewsbury would cost £1,588, which would mean a rise of about £25 a year for commuters in Powys travelling to work in Shropshire, to £1,613 a year.

Newtown to Aberystwyth passes cost more, clocking in at £2,360 a year, and a 1.6 per cent rise would increase that to £2,397 – a rise of £33 a year.

Passenger watchdog Transport Focus called for a major shake-up of rail fares to encourage passengers back to the railways following the collapse in demand caused by the coronavirus pandemic.

Chief executive Anthony Smith said a system that fits "the way we live and travel now" is needed, rather than "season tickets designed for city gents in the last century".

He went on: "Our research tells us almost two in three former rail commuters expect to work from home more so we will probably now travel less for work, both commuting and on business.

"The Government must go above and beyond a fares freeze and get train companies to offer a combination of cut-price deals, carnet-style 'bundles', flexible season tickets for commuters and better-value-for-money fares across the board."

Department for Transport figures show car use has nearly returned to pre-pandemic levels, but rail travel is below a third of what it was before the crisis despite lockdown restrictions easing.

All revenue and cost risks from train companies were transferred to the UK, Scottish and Welsh Governments in March to avoid franchises collapsing.

This has already cost taxpayers at least £3.5 billion.

The initial Emergency Measures Agreements (EMAs) offered by the UK Government last for six months, but taxpayer-funded support is expected to continue.

Trade unions claim EMAs mean Britain's railways are now in public ownership, but that is disputed by the industry.