The UK government's plan to cap bus fares across England at £2 per journey from 2027 has sparked outrage among charities and development organisations, who warn it will hit the world's poorest hardest. The policy, announced by Prime Minister Andy Burnham, is funded by converting international climate aid into repayable loans – a move critics argue will cripple developing countries' ability to address the climate crisis.
The fare cap would reduce the current £3 limit to £2, with an estimated cost of over £500 million next year. Approximately £400 million of this will come from reclassifying international climate investment as repayable loans. Experts warn that this shift will burden developing countries with more debt and hinder their ability to address climate change.
Joanne O’Neill, Co-Director of Advocacy at ActionAid UK, said the funding proposal 'throws global south countries under the bus', penalising those most impacted by a climate crisis they did not create. She highlighted that delivering international climate finance as loans rather than grants forces countries to divert funds from essential public services, with a disproportionate impact on women and girls.
Liberal Democrat spokesperson for international development, Monica Harding, echoed these concerns, suggesting Mr Burnham's decision would 'further undermine the UK’s standing as a reliable global partner'. She added that swapping crucial climate grants for loans would 'ultimately fall on the backs of the world’s poorest', racking developing nations with more destabilising debt and potentially fuelling migration and instability.
Romilly Greenhill, Chief Executive of Bond, which represents aid organisations, expressed disappointment at Mr Burnham's decision to continue raiding the UK aid budget for domestic initiatives. Danny Gross, a climate campaigner at Friends of the Earth, described the funding method as 'nothing short of a travesty', given the UK's existing performance on international climate finance.
This policy follows Mr Burnham's earlier announcement to cut VAT on electricity bills and comes amidst broader concerns about the government's commitment to international development. While officials suggest the loan switch could support initiatives like Brazil's Tropical Forests Forever Facility, critics point out that loans are more likely to be directed towards middle-income countries capable of repayment rather than the world's most vulnerable nations.