Transport Secretary Patrick McLoughlin says the planned cap on rail fare increases - which the Government says could have been as much as 9.2% -could save some commuters hundreds of pounds a year.
Today is just the start of a Government-wide programme to help hardworking people and reduce the cost of living. The Government will be announcing a range of initiatives to help put money back in people's pockets over the next few weeks.
By capping fares we are protecting passengers from large rises at a time when family incomes are already being squeezed. We will need to wait for the rail industry to calculate individual ticket prices for next year, but this cap could save some commuters as much as £200 a year.
Anthony Smith, chief executive of rail customer watchdog Passenger Focus, has welcomed the cap on rail fare increases.
He said: "Passengers will be pleased to hear that the amount train companies can raise individual regulated fares by has been limited.
"We have been calling for this to happen for years - it is a step towards a fairer system. This will allow passengers to plan with a bit more certainty and have confidence that actual regulated fare rises will bear more relation to the figures set by government."
Hard-pressed rail commuters facing inflation-busting season ticket fare increases in the new year are to be given some respite.
The Government has announced it is to cap the increases of regulated fares planned for January 2014.
It says the ability of train operators to add an additional five percent to some individual fares, as long as the average rise of regulated fares is maintained at one percent above RPI inflation, is being limited to just two percent.
This means that in January 2014, no regulated fare - which includes season tickets - can go up by more than 6.2%, with the average, as already announced, being limited to 4.2%.