A loss-making rail company has been bailed out with a major injection of public money to enable it to continue to run its services.

Central Trains, which operates passenger services in the Midlands, East Anglia and central and south Wales, is to receive £22m from the Strategic Rail Authority (SRA).

The money is part of a handout to the National Express Group which runs the Central franchise.

The group has seen a drop in income at its franchises resulting from disruption on the rail network after the Hatfield crash in October 2000.

Services saved

The rest of the sum, £34m, will go to ScotRail, also run by National Express.

There had been fears the company would be forced to cut services and run only the minimum required by its franchise agreement.

But National Express has now agreed to continue to operate its additional services above the minimum level.

A spokesman for National Express said: "Both Central and ScotRail suffered badly from the speed restrictions imposed on the network following the Hatfield accident in October 2000."