A RAIL operator has denied using taxpayers' money to subsidise its profits.

The RMT has slammed New Arriva Rail North, which owns Northern Rail, after its accounts revealed "secret extra taxpayer funded payments" of £31 million since the franchise began in April 2016.

The union said these payments are directly allowing the company to make profits of £33.7 million over the same period.

Arriva Rail North were to receive £537 million in real terms in taxpayer subsidy by April 2018 but the company’s latest report and accounts show they received £568 million, an extra £31 million which is almost the same as their £33.7million profits.

The union is currently involved in a bitter dispute with the rail operator and a planned strike by union staff this weekend will mark the 43rd day of its industrial action.

Mick Cash, general secretary of The Rail, Maritime and Transport (RMT) union, said: "As well as bailing out Northern Rail on strike days these new official company figures reveal that Ministers have misled MPs about the extent of taxpayer support the company is receiving.

“Without informing parliament Ministers have authorised secret extra payments of £31m, which have only just come to light and which have been used to subsidise profits of £33.7m.

“This is money that could have been used to underpin the guard-guarantee on Northern trains but will be used instead to fund German railways. That is nothing short of a scandal.”

Richard Allan, Deputy Managing Director for Northern said: “It is wrong to say these are secret payments and subsidising profits for Northern.

"The increase in franchise payments are due to inflation and changes in services and other policy areas that Northern has been asked to deliver on behalf of Transport for the North and DfT since its bid for the franchise was submitted in 2015.

"The payments are based on the additional costs or lower revenue for Northern arising from these changes.

“In the year to 31 March 2018, Northern had lower than anticipated passenger revenue growth, largely due to delays to infrastructure improvements preventing the introduction of new services, and RMT strike action."

The RMT has already announced it will strike on every Saturday in January.

The dispute is over the union's fight to keep what it describes as "a safety-critical guard" on Northern trains.

The row has now been ongoing for two-years, with Northern standing firm about the plans to implement driver-only services.

The rail operator insists this way of working is safe and in "regular use" across rail networks in the UK and on the continent.