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Train operators have announced above-inflation rail-fare increases, with passenger groups branding the rises "unfair".

Regulated fares - such as season tickets and standard day returns - will rise by 4.8 per cent in the New Year, the Association of Train Operating Companies (ATOC) confirmed today.

Meanwhile unregulated fares – including cheap day returns and open and advance purchase tickets – will rise by an average of 5.4 per cent under the increases which will come into force on January 2nd.

Defending the rises, ATOC said the increases were necessary to fund additional investment in the railway network.

"We need the revenue from fares to pay for investment in the railway for the benefit of passengers," said ATOC director general George Muir.

"We are providing a higher-performing railway with new, refurbished and more punctual trains and better stations," he added, claiming punctuality performance had reached its highest level in a decade.

The organisation revealed additional passenger revenue will fund the "extensive" programme of investment outlined by the government in the recent railways white paper, including London's planned Crossrail project.

It says fare increases are also needed to reduce subsidies paid to some train operators by the Department for Transport under current franchise agreements and also to cut premium payments made to the department by others.

ATOC also insists increases in rail fares over recent years have fallen behind the cost of travelling by bus and car and claims recent ticket price rises compare favourably to rising utility costs.

However the head of the independent rail consumer watchdog has condemned above-inflation fare rises.

Commenting after Southeastern Trains announced its regulated fares would rise by around seven per cent, Passenger Focus chief executive Anthony Smith told BBC Radio 5 Live: "We think above inflation fare rises are unfair, and when you add these together year after year after year they build up to quite significant fare increases."