Transport minister Tom Harris said on Tuesday that passengers would benefit from the awarding of the East Coast Mainline franchise to National Express.
The transport minister's comments followed worries that the awarding of the franchise to National Express would lead to substantial increases in unregulated fares.
'What National Express have told us is that as far as unregulated fares are concerned they're looking at an average of 2.1 per cent above inflation, which I don't think is out of the park,' said Mr Harris to BBC Radio 4's Today programme.
Mr Harris defended the franchise system in general, rejecting reports that the GNER deal had been unsustainable because of the £1.3 billion premium, and that there had been plenty of open competition for the franchise that had placed the premium at National Express' £1.4 billion.
Secretary of state Ruth Kelly had promised that passenger groups would be more involved at the early stages of the franchise process.
But Mr Harris also defended the process as it had been until know, pointing out that there were now more people than at any time since the early 1960's travelling on the railways.
National Express will take over the running of the franchise from GNER this December.
If you're train travelling this summer, make sure to get a great deal on your
travel insurance, call or check online for a quote from
InsureandGo.