The bus fare capping crisis appears to have reached a turning point, with Prime Minister Andy Burnham confirming that single fares across England will be capped at £2 from January 2027. This move is part of a nationwide initiative aimed at making public transport more affordable for millions of households struggling with the ongoing cost of living challenges.
The current national cap stands at £3 and was scheduled to remain until March 2027, but certain regions like Greater Manchester are already benefiting from lower top rates, following Mr. Burnham's introduction of a similar limit as mayor. The Prime Minister re-emphasised his commitment to accessible transport, stating that "no one should be priced out" of essential travel links.
The scheme will receive £454 million in funding, with approximately £400 million sourced from reallocating investment in international climate finance and the remaining funds coming from identified savings within the Department for Energy Security and Net Zero budget. The total cost is expected to surpass £500 million, but this will be drawn from existing Department for Transport allocations for bus services.
Chancellor John Healey highlighted that millions would benefit from a substantial reduction in fares, stating that "this action eases the cost of living without placing any burden on British taxpayers." Transport Secretary Heidi Alexander welcomed the move, noting it would simplify and reduce the cost of everyday journeys.
The reintroduction of the £2 cap marks a significant shift in policy. A similar cap was in place between January 2023 and December 2024 before being allowed to expire due to financial viability concerns raised by the Labour government at the time, although some metro mayors chose to fund extensions in their areas.