Philip Hammond will unveil plans to offer discounted rail travel to the under-30s in his Budget on Wednesday.
The Chancellor will announce his intention to work with the rail industry to extend an existing scheme which offers 16-25 year olds and full time students a 1 /3 off rail tickets prices.
This year’s general election saw young voters flock to support Jeremy Corbyn, with 63 per cent of the under-30s voting for Labour; the Chancellor is expected to use his Budget to try to win back their support.
As well as the railcard announcement, measures to tackle the UK’s housing crisis are expected to form a key part of the Budget.
Annual 16-25 railcards can be purchased for £30 and save users an average of £150 over the course of year.
The Government intends to work with the rail industry to extend the card to 30-year-olds, with a view to having them available for sale in the Spring next year.
Stephen Joseph, head of the Campaign for Better Transport, has praised the idea but suggested it will not help commuters who have faced increasing fares.
He said: "This is good news for people under 30."
"Unfortunately it does nothing for regular commuters as you can't use a railcard to buy a season ticket," he added.
According to Action for Rail, rail fares have increased 56 per cent since 2006. Further price increases are expected in January when commuters will on average have to spend £100 more on annual season tickets.