Transport minister Simon Lightwood has confirmed that the bus fare cap in England will be reduced from £3 to £2 from the start of 2027. The change, announced by Prime Minister Andy Burnham in his first week in office in July 2026, will cut the cost of single journeys for millions of bus users.
Evidence on lower fares and car usage
Labour MP Callum Anderson asked in Parliament what assessment had been made of how lower bus fares impact car usage. In a written response, Mr Lightwood cited evidence from the evaluation of the first 10 months of the £2 bus fare cap, which ran from January 2023 to December 2024. He said: "Evidence from the evaluation of the first 10 months of the £2 bus fare cap, which ran from January 2023 to December 2024, reported that lower bus fares encouraged some people to switch to bus travel from other modes."
Mr Lightwood shared further figures from the evaluation. He said: "Across four surveys conducted as part of the evaluation, between 29 per cent and 38 per cent of respondents who reported making additional bus journeys said that, without the fare cap, they would have made those journeys using a different mode of transport."
Car was the most common alternative
Among those respondents, the car was the most commonly reported alternative mode. Mr Lightwood said: "Among those respondents, the car was the most commonly reported alternative mode, with between 21 per cent and 31 per cent reporting that they would otherwise have travelled by car or van as a driver, and a further 15 per cent to 18 per cent reporting that they would have travelled as a passenger."
The bus fare cap was first introduced in January 2023, originally set at £2, to help low-income households with travel costs and to encourage more people to use the bus. It increased to £3 from January 2025.
Millions to benefit from the cut
When the Government announced the return to the £2 bus fare cap, it said millions of people would benefit. Without the cap, the cost of a single fare would jump to more than £10 on some of the most expensive routes, according to the Government.
Ministers expect the cut to particularly benefit people living in rural and coastal areas, where single fares can be higher and communities often have limited transport links.
Prime Minister Andy Burnham said when the new bus fare cap was announced: "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."
