A new pay offer for train drivers is a “good deal for the taxpayer” because it ends more than two years of strikes, said Finance Minister Darren Jones.

The offer, which will be voted on by members of the Aslef union, provides for a retroactive increase of 5% for the period 2019-2022, 4.75% for the period 2022-2024 and 4.5% for the period 2024-2025.

The Conservatives claim the Labour government has “simply caved in to the unions” and argue that this will lead to higher fares or tax increases.

Education Secretary Bridget Phillipson was asked four times in a BBC interview who would cover the costs, but she refused to answer each time.

She told Radio 4’s Today programme It is “important that we resolve these disputes and I am glad that it sounds like we can resolve the problem completely.” He added that the government would ensure that passengers were “treated fairly.”

The disruption it caused and “the massive hit our economy has taken has been totally unacceptable and a symptom of the wider failure of the last Conservative government that we have seen across the public sector and across all industries,” Ms Phillipson said.

The government assumes that the financing of a wage offer for train drivers will come largely from the budgets of the railway operators.

The ministers want to determine where the remaining money will come from in the draft budget in October.

It is believed that ministers expect that the bulk of the funds can come from the funds already earmarked for salary increases since 2022.

However, the government has not provided any figures to support this statement.

In addition, the possibility remains open that taxpayers will cover part of the wage costs while other benefits are cut for cost reasons.

The Aslef leadership recommends that union members accept the offer.

General Secretary Mick Whelan said: “We are delighted that after being treated with utter contempt over the last two years by the privatised rail companies and the previous government that pulled their strings, we finally have a new government that is listening and wants to make the railways work for staff, passengers and the taxpayer.”

But Conservative Shadow Transport Secretary Helen Whately condemned the government’s actions, saying a “no strings attached” deal meant the costs would be borne by passengers and taxpayers.

“Abandoning labor practice reforms leaves a hole in the budget that can only be filled by higher fares or higher taxes,” she said.

Citing the Labour Party’s decision to scrap winter fuel payments for around 10 million pensionersMs Whately added: “The Government has chosen to put unions ahead of passengers and taxpayers – and pensioners too.”

Finance Minister Rachel Reeves warned that “difficult decisions” would have to be made in the October budget and accused the previous Tory government of leaving a £22 billion hole in the public finances.

She has indicated that some taxes are likely to riseHowever, he stressed that Labour would stick to its election promise not to increase income tax, social security contributions or VAT.

Treasury Chief Secretary Mr Jones said: “Reshaping the relationship between government and public sector workers in this case is good business for the taxpayer because we are preventing strikes.”

“If strikes continue, there will be a direct cost to the economy and we must work in partnership with workers, unions and business to restore sustainable growth to the economy.”

Since June 2022, train drivers have been on an 18-day strike and are refusing to work overtime outside of the collective agreement, causing massive disruptions to the rail network.

According to the Department for Transport, the rail industry lost around £850 million in revenue as a result.

Wera Hobhouse, Liberal Democrat transport spokeswoman, said: “Years of mismanagement by the Conservatives have resulted in commuters paying more for less.”

“Any measure that leads to a fair agreement for passengers and workers alike is welcome.”

However, she added that “maintaining the affordability of travel must be a priority” and called for an immediate price freeze on season tickets.