RAIL passengers faced the annual New Year price hike this week as they returned to work.

London Midland, which operates the Stourbridge to Birmingham line, increased its prices by the maximum 1.9 per cent the Government allowed.

Dawn Daniels, aged 44, from Cradley Heath, said: "My fares have gone up again and the cost of travelling on the train is taking more of my wages.

"I have to go into Birmingham every day and I am seriously thinking about driving again, every time the prices go up they must be forcing more people on the roads which is not good for the environment."

The Labour Party have condemned the state of the railways and blamed the Government for the increasing prices.

Andy McDonald, Labour’s Shadow Transport Secretary, said: “Passengers have faced truly staggering fare rises of over £2,000 since 2010.

"In some cases, commuters are paying forty three per cent more as a direct consequence of decisions made by ministers."

He added: "Fares have risen more than three times faster than wages and passengers on some routes have also been hit by ‘stealth fare rises’ of up to 162 per cent.

“Passengers were always told that higher fares were necessary to fund investment, but vital projects have been delayed by years and essential maintenance works have been put on hold.

“The truth is that our heavily fragmented railways mean that it takes years longer and costs much than it should to deliver basic improvements.

"The railways need reforms that could be implemented if public ownership was extended to passenger services, but ministers are persisting with a failed model for purely ideological reasons.”

Transport Secretary Chris Grayling defended the price rises.

He said: "We are delivering the biggest rail modernisation programme for more than a century, providing more seats and services.

"We have always fairly balanced the cost of this investment between the taxpayer and the passenger."

London Midland refused to comment on the New Year price rises.

The Stourbridge to Birmingham line franchise is being renewed this year and London Midland have bid to run the service again, however, the West Midlands Rail, made up of local authorities will oversee the route. Stourbridge Line User Group's deputy chairman William Whiting praised London Midland for improving services in recent years.

He said: ""Unfortunately it's not all positive, it's obvious that the Stourbridge line needs an earlier start to Sunday services, but this is not part of the franchise specification.

"And in these last few weeks we have seen unacceptable overcrowding on trains taking people to and from Birmingham for shopping and the Christmas market.

"We have also made it clear that the Stourbridge line needs improved connections to other rail services to realise its potential, including giving better access to Birmingham airport, central Worcester, south Wales and the south west in line with the regional transport strategy."