Most bus fares across England will be capped at £2 starting January, a policy announced by Prime Minister Andy Burnham. This initiative is projected to cost the government more than £500 million and aims to provide financial relief for citizens facing increased living expenses.
The government stated this measure will "help with the cost of living and give people the breathing space they need." The previous cap, introduced at the start of last year under Sir Keir Starmer's Labour government, had increased to £3. However, fares in Liverpool and Manchester maintained a £2 limit. The new cap specifically targets participating bus services outside of London, where a non-discounted single journey currently costs £1.75.
This policy fits into a broader national effort to address economic pressures and support public transport. Ghana, for instance, has also grappled with rising transport costs impacting its citizens, often leading to calls for government intervention or subsidies. The English government's decision reflects a similar recognition of transport affordability as a key component of household budgets.
Transport Secretary Heidi Alexander acknowledged the measure was "not the whole solution" but offered "a little bit of hope." She highlighted that many people are struggling with higher living costs, particularly after fuel prices spiked due to the US-Iran war. The new cap is expected to particularly benefit passengers in rural and coastal areas, where single fares can often be higher.
The Campaign for Better Transport welcomed the move but emphasized the need to restore lost services. Michael Solomon Williams from the Campaign for Better Transport noted that rural areas have suffered more from council cutbacks over the last decade than urban zones. Data from the County Councils Network, representing 39 unitary and county councils, shows that services in these areas, measured by vehicle miles, decreased by 18% between 2019 and 2024.
When the £2 cap was first introduced in 2023, it served both as a cost of living measure and an incentive to encourage bus ridership post-pandemic. The Office for National Statistics reported that the scheme contributed 5% to a 13% rise in bus usage during its initial ten months. It also played a role in reducing inflation that year, with lower-income passengers experiencing the most significant financial benefits.
Despite these efforts, bus usage remains below pre-pandemic levels. By March 2025, 1.9 billion journeys were made on local buses in England outside of London, which is approximately 93% of pre-pandemic figures. The initial scheme spent £210 million, less than its £245 million budget, indicating some efficiency in its implementation.
Scotland and Wales will receive equivalent funding for the bus fare cap scheme. The Scottish government, which piloted a £2 cap in the Highlands and Islands, is considering legislation to extend this across all of Scotland. Northern Ireland will also receive additional public service funding, though its allocation to transport is not mandatory. These developments underscore a wider trend across the UK to make public transport more accessible and affordable.