PASSENGERS are shouldering an increasing share of the cost of running the UK's railways compared to taxpayers, an industry study has found.

Income from passenger fares accounted for nearly 61.5 per cent of the money flowing into the rail industry in the 2013-14 financial year, compared to 55.6 per cent three years earlier.

In total, passenger fares contributed £8.2 billion to the rail industry in the last financial year compared to £3.8bn paid by taxpayers, with the remaining income from sources such as station retail, according to a report by the Office for Rail Regulation.

The total cost of running the railways was £12.7bn, leaving a surplus of £600,000.

Total government subsidies varied from £1.88 per passenger journey in England, to £7.77 per journey in Scotland, and £9.18 per journey in Wales.

The increase in passenger share has come amid growing passenger numbers and freight.

Passenger journeys have increased by 16.6 per cent - equivalent to 260 million journeys - and the amount of freight carried on the network has risen by 18.1 per cent.

The industry has also invested significantly in network enhancements with £3bn spent in 2013-14, and further £12bn planned over the next four years.

ORR chief executive, Richard Price, said: "There has been substantial growth in the use of the railways in the past four years. Passengers are increasingly the main funder of the railways, and must be central to developing plans for future services and investment. ORR's report also highlights that the rail industry has been successful in keeping costs stable despite carrying significantly more passengers. Our industry financials publications provide an open and comprehensive explanation of industry income and expenditure to help passengers understand how the money they pay in fares is being used."