Key facts
- Single bus fares in England will be capped at £2 from January 2027.
- The fare cap is funded by over £500 million, with approximately £400 million redirected from international climate finance.
- Charities have criticized the funding mechanism, arguing it will harm developing nations and increase their debt.
- The decision to switch climate finance from grants to loans has been described as undermining the UK's global standing.
Prime Minister Andy Burnham announced that single bus fares across England will be capped at £2 from January 2027, a move intended to alleviate cost-of-living pressures. The initiative is primarily funded by reallocating over £500 million, with a significant portion coming from international climate finance that will be converted from grants to repayable loans.
This funding strategy has drawn sharp criticism from charities and political opponents. They argue that using aid budgets in this manner penalizes countries most vulnerable to climate change, pushing them further into debt and diverting funds from essential public services. Critics also contend that this decision damages the UK's reputation as a reliable international partner.
The government stated that the switch would enable funds to support initiatives like the Tropical Forests Forever Facility. However, experts suggest that loans are more likely to be given to middle-income countries, potentially excluding the world's poorest. The previous government had already reduced the aid budget, and this move raises concerns about further downgrading the UK's commitment to international development.