Train services run by failing operator TransPennine Express will be brought under Government control due to "continuous cancellations".
The Transport Secretary Mark Harper made the announcement today, saying he will not extend or renew the operator's contract when it expires on 28 May.
The Department for Transport (DfT) said the decision followed "months of significant disruption and regular cancellations" across the network serving the North.
This has led to a "considerable decline in confidence for passengers who rely on the trains to get to work, visit family and friends and go about their daily lives".
DfT said under 'operator of last resort' the services will still run "as normal with no changes to tickets, timetables or planned services".
They stressed it was the Government's "full intention" that Transpennine Express will eventually be returned to the private sector.
Mayor of West Yorkshire Tracy Brabin described the decision today as "absolutely right".
"We've been urging government to act for almost a year, as delays and cancellations have damaged our economy and subjected commuters in the North to sheer misery," she said.
"This is a victory for northern mayors who rallied together to hold TransPennine Express and Rishi Sunak's Government to account on this issue."
The Mayor of Greater Manchester Andy Burnham added: "As Mayors, we have spoken up consistently for long-suffering rail passengers in the North. I am glad the Government has listened. We will now work with them to restore trust in train services and build a railway people can rely on."
In a statement today the Cabinet minister Mr Harper said: "After months of commuters and northern businesses bearing the brunt of continuous cancellations, I've made the decision to bring TransPennine Express into Operator of Last Resort.
"This is not a silver bullet and will not instantaneously fix a number of challenges being faced, including Aslef's actions which are preventing TransPennine Express from being able to run a full service - once again highlighting why it's so important that the railways move to a seven-day working week.
"We have played our part but Aslef now need to play theirs by calling off strikes and the rest day working ban, putting the very fair and reasonable pay offer to a democratic vote of their members."
Graham Sutherland, chief executive of TransPennine Express owner FirstGroup, said: "We have operated TransPennine Express and its forerunners since 2004, and are very proud to have served the communities across northern England and into Scotland, carrying millions of passengers and introducing new trains, new routes and more seats for our customers.
"Our team have worked extremely hard to improve services, including by recruiting and training more drivers than ever before.
"We have also worked closely with the Department for Transport and Transport for the North on an agreed recovery plan as well as an improved offer on overtime working for our drivers.
"FirstGroup is a leading UK rail operator with a strong and diversified portfolio.
"Today's decision does not alter our belief in the important role of private rail operators in the delivery of vital, environmentally-friendly transport for customers and communities across the UK."
