Just days after becoming Prime Minister, Greater Manchester’s former mayor, Andy Burnham, has announced that single bus fares will be capped at £2 in England. Following the success of the £2 bus fare cap in Greater Manchester, this change is set to reduce maximum fares by a third across the country.
Currently, bus fares outside of London and Greater Manchester have been capped at £3 until the end of March 2027, but today’s move will stop prices jumping next Spring and lower fares to £2 from January. The cap will be extended until the end of 2027, which the government says will also give local authorities more time to plan with confidence.
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The last £2 fare cap saw an estimated 30 million more journeys taken by bus in just 10 months
The move comes after the Government announced £100m for free bus travel for all children in England aged 5-15 on participating services this summer. The Great British Summer Savings scheme will help families with the cost of living this August, with further savings at restaurants and attractions in time for the summer holidays.
The last £2 fare cap saw an estimated 30 million more journeys taken by bus in just 10 months. This cap comes alongside the first rail fare freeze in 30 years announced earlier this year, saving passengers £600 million and commuters on some routes saving more than £300 a year.
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When will the £2 bus fare cap come into effect?
Passengers will be able to benefit from the £2 cap on participating buses from January inall areas of England outside of London. Until 1 January 2027, the majority of single bus fares outside of London will remain capped at £3.
The devolved governments will receive funding through the Barnett formula in the usual way.
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“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.”
Prime Minister Andy Burnham said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind.
“But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.
“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.
“As I said on my first day in office – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives.”
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The £2 bus fare cap has been funded through an extra £454 million
The government says this move has been funded through an extra £454m (including funding for devolved governments) which comes from a reprioritisation of DESNZ’s budget, switching funding that had been set aside for international climate finance projects into loans.
Chancellor of the Exchequer, John Healey MP said: “We are capping bus fares at £2 for everyone throughout 2027, slashing fares by a third for millions of people, to help give them the breathing space they need.
“This action to ease the cost of living is funded by savings made elsewhere, so there’s no burden to British taxpayers, just pounds going back into their pockets.”
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More control of buses for local leaders
Since local leaders know their areas best, the Government has said it will be supporting six mayoral authorities to set up bus franchising, allowing them to take control of their buses and deliver better services fit for their communities. This builds on the success of the Bee Networkin Greater Manchester, where single fares have been capped at £2 for the last 4 years.
The government has also set out that it will consult on ways to give extra planning powers to mayors that will give them the final say over decisions on public transport, including mass transit.
