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Many level crossings will be closed or improved to make them more safe in the next round of spending
Around 500 level crossings will be closed and safety improved at hundreds more after rail regulators increased funding to Network Rail.
In its final draft of 2014-2019 rail funding, the Office of Rail Regulation (ORR) increased funding for level crossings by £32m to a total of £109m.
Nine people died on level crossings last year, more than double the year before.
Network Rail's overall funding was cut by £1.7bn by the ORR.
The extra funding for level crossings comes a short time after the House of Commons Transport Committee heard about concerns over level crossing safety from the parents of Olivia Bazlinton, 14, who, with her friend Charlotte Thompson, was killed at a crossing at Elsenham in Essex in December 2005.
Savings of 20%Network Rail was fined £1m over the girls' deaths in 2012 after admitting health and safety breaches associated with the level crossing.
Olivia's mother Tina Hughes told BBC Breakfast the changes being made to level crossings would save lives.
She said "many of the crossings in this country have got little protection on them" adding that such crossings represented the most danger to the public.
In the ORR's final determination on funding, Network Rail will receive more than £21bn over the next five years to fund the day-to-day running of the network.
The savings require Network Rail to bring down the cost of running the network by around 20%,
Rail companies have also been set tougher punctuality targets, under which 90% of local trains must run on time.
On long-distance services, First Great Western must run 90% of trains on time while a target of 88% has been set for the two main London to Scotland routes - the East Coast and West Coast main lines.
Network Rail has until 7 February 2014 to respond in detail and accept or reject the ORR's determination.
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