New £2 Bus Fare Cap Announced
Prime Minister Andy Burnham has confirmed that bus fares will be capped at £2 from January 1, reducing the maximum single fare from £3. The policy is set to save passengers an average of £28 per year on non-London bus journeys, according to Department for Transport data.
Details of the Savings
In 2024, people in England made an average of 41 local bus trips per person per year. Outside London, 28 trips were taken, while Londoners averaged 13 trips. The £2 cap applies nationwide except in London, where Mayor Sadiq Khan and Transport for London set fares. For the 28 non-London journeys, the £1 reduction per trip results in an annual saving of £28 for the average passenger.
Government Support and Funding
Chancellor of the Exchequer John Healey emphasised the policy's benefits: “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.” The cap is backed by £400 million in extra funding and will run throughout 2027.
Impact on Bus Usage
Department for Transport officials noted that the previous £2 fare cap introduced by Sir Keir Starmer led to an estimated 30 million additional bus journeys over just 10 months. Without a cap, single ticket prices could exceed £10 on some of the UK’s most expensive routes.
Jason Prince, director of the Urban Transport Group, praised the move: “It’s great to see the new Government recognising the value of the bus to people’s everyday lives from the get-go. Cheaper fares not only make bus travel more affordable but they can help to significantly drive passenger numbers, so this is a welcome intervention for both bus users and local communities.”
