MILLIONS of pounds in rail fares paid by Essex commuters are being used to fund services in other parts of the country.

Essex operators Greater Anglia and c2c paid back more than £200million to the Treasury last year, which was then used to subsidise rail services in areas including Wales, Scotland and Merseyside.

The biggest amount was handed over by Greater Anglia, which paid out £187.1million. Rail firm c2c paid £18million, which works out at 2.7p per passenger mile.

The sum, which isaterm of franchise contracts between operators and the Government, is equivalent to more than 6p for every mile travelled by a Greater Anglia passenger.

A passengers’ campaigner believes it is unjust for passengers’ money to be spent on other regions when Essex services are in need of major investment.

Derek Monnery, chairman of the Essex Rail Users’ Federation, said: “We don’t mind subsidising other parts of the country, provided we get the good trains we should be getting.

“The problem is that our trains are not up to scratch, yet we are subsidising everyone else.”

A new 15-year franchise for the c2c line was agreed in 2014, but a long term contract for the Greater Anglia line is set to begin next October. First Group, National Express and current operator Abellio are on the shortlist to take on the long-term franchise.

Mr Monnery said: “The system really needs to be changed when the new franchise comes in. “All the signs are pointing towards investment, but now it actually has to happen so we get new trains and not just a few.”

A c2c spokesman said: “The Government has set up the structure of the rail industry and also decides the national policy on commuter fare changes each year. “Like most London commuter operators, c2c pays a premium to the Treasury. “This is then reinvested to cover the costs of running Network Rail and the wider UK rail industry."

A Department for Transport spokesman said: “We all recognise that Britain’s railways deliver huge social, environmental and economic benefits.

“The regional differences in government funding mean that all rail customers across the country can benefit from better journeys by rail and the best possible services in each area.

“Customers in Essex have benefitted from this arrangement through the delivery of new trains, greater seat capacity and station upgrades on the c2c and Greater Anglia routes.”