The UK Government has announced that single bus fares across England, outside London, will be capped at 2 GBP from 1 January 2027, replacing the current 3 GBP cap.
The new cap will remain in place until the end of 2027.
The policy, announced by Prime Minister Andy Burnham during his first week in office, is intended to reduce the cost of everyday travel and encourage greater use of local bus services. The measure is backed by an additional 400 million GBP.
The government notes that the previous 2 GBP fare cap contributed to an estimated 30 million additional bus journeys during a 10-month period. It argues that reintroducing the lower cap will make travel more affordable for journeys to work, education, healthcare and leisure, particularly in rural and coastal areas where fares can be higher.
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.
The current 3 GPB cap, introduced by the previous government and due to remain in place until the end of March 2027, will instead be reduced to 2 GBP from January. Extending the scheme through the end of 2027 will also provide local authorities with greater certainty when planning services.
According to the government, some single fares could otherwise exceed 10 GBP on longer routes.
Transport Secretary Heidi Alexander said:This is about making those everyday journeys easier and cheaper. We’re cutting fares by a third to help with the cost of living, open up opportunities and keep people connected to work, school, healthcare and their friends and family.
The funding for the scheme will come from a reprioritisation of the Department for Energy Security and Net Zero’s budget, with money previously allocated to international climate finance projects being redirected into loans.
The announcement follows the government’s launch of the Great British Summer Savings scheme, which includes free bus travel on participating services for children aged five to 15 in England during the summer holidays.
Alongside fare reductions, the government confirmed it will continue supporting mayoral authorities seeking to introduce bus franchising. Six combined authorities are currently being supported to develop franchised networks, building on the model used by Greater Manchester’s Bee Network, where 2 GBP single fares have been maintained for several years.
The government also plans to consult on proposals to give mayors additional planning powers over public transport, including mass transit schemes.
