Key facts
- Single bus fares across England will be capped at £2 from January.
- The cap applies nationwide except in London.
- The measure is backed by £454 million in funding.
- Funding includes redirected international climate finance and savings from the Department for Energy Security and Net Zero budget.
- The cap reverses an increase implemented in 2024.
Prime Minister Andy Burnham has announced that single bus fares across England will be capped at £2 from January. This nationwide measure, which excludes London, aims to provide relief for millions of people facing cost-of-living pressures. The cap will be in effect throughout 2027, reversing an increase previously implemented in 2024.
The initiative is supported by £454 million in funding. Approximately £400 million of this will be reallocated from international climate finance investments to loans, with the remainder sourced from savings within the Department for Energy Security and Net Zero budget. The total cost of the scheme is projected to exceed £500 million, with the remaining funds coming from the Department for Transport's existing bus allocations.
Burnham emphasized that affordable transport is essential and should not price people out of opportunities. He stated his commitment to making cheaper transport a reality, drawing on his previous experience implementing a similar cap. Chancellor John Healey assured that the measure is funded by savings, placing no additional burden on taxpayers and putting money back into people's pockets. Transport Secretary Heidi Alexander added that the move will simplify and reduce the cost of everyday travel.