Most bus fares in England to be capped at £2 from January
Key Points:
- England's bus fare cap will return to £2 from January 2027, as announced by new Prime Minister Andy Burnham, aiming to ease cost of living pressures and improve transport affordability.
- The policy is expected to cost over £500 million, with £454 million reallocated from the Department for Energy Security and Net Zero budget, supplemented by existing Department for Transport funds.
- The fare cap, previously set at £3 across England since January 2025, had been maintained at £2 in some regions like Liverpool and Manchester; the move is intended to particularly benefit rural and coastal passengers.
- The scheme contributed to a 5% increase in bus usage during its initial ten months and helped reduce inflation in 2023, but its value for money has been questioned due to varying fare savings across regions.
- Critics, including Shadow Chancellor Mel Stride, have expressed concern over unclear funding sources, while Transport Secretary Heidi Alexander acknowledged the measure offers limited relief amid broader cost of living challenges.