Chancellor Rachel Reeves has announced that England’s 3 GBP bus fare cap will be extended through to March 2027.
The announcement has come as part of the Chancellor’s Spending Review this afternoon (11 June 2025) and follows the cap’s increase from 2 GBP this past October.
Speaking on the cap's extension, Ben Plowden, Chief Executive of Campaign for Better Transport said:Based on the Chancellor’s initial speech, it looks like good news for transport today, with capital investment for our city regions and the areas outside them, and funding for much needed rail projects across the country. We’re also really pleased that the £3 fare cap for single bus journeys outside of London is being extended, something passengers will also welcome.
Whilst we acknowledge the funding challenges that government faces, we are concerned about the potential impact of an overall cut in revenue investment for transport and what this will mean in practice.
The initial bus fare cap was first introduced in January 2023, with each single journey across the country costing a maximum of 2 GBP regardless of time or distance, with the scheme seeing two extensions by the former Conservative government before being raised to 3 GBP in October 2024.
Claire Miles, CEO of Stagecoach, said:We welcome today’s announcement on the extension and look forward to working with the Department for Transport to understand more details regarding the scheme. Affordable, accessible bus travel is vital for connecting people to jobs, education and essential services. This continued support will help our customers manage the cost of living while encouraging more people to choose more sustainable public transport options.
Reliable, affordable transport is essential to our infrastructure and economy, and we're proud to play our part in ensuring vital routes are served.
Elsewhere, the Chancellor has announced funding injections of 15 million GBP for new rail, tram and bus networks across the West Midlands and the North.
