Troubled rail company Northern is to be brought under government control.
The decision, which will see the firm's franchise stripped from operator Arriva Rail North from 1 March, was taken following years of major disruption.
Transport Secretary Grant Shapps said passengers had "lost trust in the north's rail network".
Arriva said it "understood the government's decision", but problems had been largely due to "external factors" such as rail infrastructure.
Northern passengers have faced rail chaos ever since new timetables were introduced in May 2018, and punctuality and reliability problems have continued to blight the network.
Mr Shapps said: "People across the north deserve better, their communities deserve better and I am determined to achieve that."
The move means services will be operated by an arms-length government-owned company.
German-based Arriva had been due to run Northern until March 2025.
But Mr Shapps revealed in October he had requested a proposal from Northern to outline its plans to improve services, after "unacceptable" delays and cancellations.
The Department for Transport then had to consider whether to hand a new, short-term contract to Arriva, or to nationalise services by putting the government-controlled Operator of Last Resort (OLR) in charge.
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