The government has announced that £2 single bus fares will be capped throughout England for all of 2027, excluding London. This move comes as part of a broader effort to support low-income households with rising cost-of-living pressures. The new fare cap will replace the current £3 cap from January and remain in place until December 31, 2027.
This measure is backed by an additional £400 million in government funding, which will allow millions of passengers to save up to a third on single journeys. The initiative aims to improve access to work, education, healthcare, and leisure activities for those in rural and coastal communities where fares can often be higher.
The funding for this extended fare cap has been secured by shifting resources from international climate initiatives to domestic cost-of-living support measures. This includes a switch from grants to loans for some of these climate projects.
This announcement builds on existing government commitments to the bus sector, including over £100 million in additional support earlier this year. The funding included free bus travel for children aged 5-15 and provided resources to local transport authorities to manage rising operational costs and maintain affordable fares.
As part of its broader plan for buses, the government has pledged more than £3 billion over three years, alongside significant reforms through the Bus Services Act 2025. These reforms aim to empower local transport authorities to tailor bus services to community needs, whether through franchising or other locally-driven strategies.