Northern Rail has been stripped of its franchise and taken back into public ownership, after years of misery for its customers.
The service has been plagued with problems and transport secretary Grant Shapps warned at the start of the year its days were numbered.
Run by Arriva Rail North, it operates most of its services from Liverpool, Manchester, Sheffield, Leeds and Hull.
Its passenger satisfactions ratings are among the lowest in the country, yet travellers still faced a 2.7% hike in ticket prices this month.
In a statement to parliament, Shapps said the government would start operating Northern services through the public-sector operator, he said, referring to it as the “so-called operator of last resort”.
“This is a new beginning for Northern, but it is only a beginning,” he said. “Northern’s network is huge and complex, some of the things which are wrong are not going to be quick or easy to put right.
“Nonetheless, I am determined that Northern passengers see real and tangible improvements across the network as soon as possible.”
Meanwhile, the cabinet minister said that the current model of privatised railways was “failing to deliver”.
Over the past two decades of privatisation, passenger journeys have almost doubled, Shapps said.
“However,” he added, “it is clear that the current model is now struggling to deliver. Across the country a number of franchises are failing to provide the reliable services that passengers require.
“We know change is needed, and it is coming. The Williams Review is looking at reforms across the railway to ensure customers are at the heart of the system.”
Northern’s franchise is the second to be re-nationalised, after the main intercity east coast service was brought into public ownership through the government’s “operator of last resort” in 2018.
Reacting to the news, shadow transport secretary Andy McDonald said the move was “too little too late”.
“Millions of passengers have faced misery and delays yet this government has done nothing for years,” he said. “And now, despite their failure, another private transport company is getting a Tory bailout.
“So much for levelling up the north - this government seems intent to keep the north down,” McDonald continued.
“All failing rail contracts should be taken into public control as a major step towards uniting track and train.”
Meanwhile, Labour MP Yvette Cooper tweeted: “About time. Delays & cancellations under Northern Rail have been getting worse and worse and worse.
“But Govt also needs a proper plan to invest in our northern railways, trains and stations so we get a fair deal.”