Cheaper travel for millions with a third off fares

Millions of people will save a third on bus travel as Prime Minister Andy Burnham announces a cap on single bus tickets at £2 during his first week in office.

To help with the cost of living and give people the breathing space they need, passengers will benefit from cheaper fares from 1 January 2027 for the rest of the year– with maximum fares slashed by a third.

Buses are a lifeline for communities, providing essential routes into work, training and education as well as childcare, health care and leisure. The last £2 fare cap saw an estimated 30 million more journeys taken by bus in just 10 months.

Backed by £400 million extra funding, the cap on fares outside of London will help millions of people across the country access affordable bus travel more easily, breaking down barriers to travel for people struggling with the cost of living, opening up opportunities and boosting local economies.

Without the fare cap, single fares could soar above £10 on some services on the most expensive routes. The cap will particularly help passengers in rural and coastal areas to save money, where single fares can be higher while communities have been left behind by insufficient transport links.

A lack of access to affordable transport is also a major practical barrier to young people entering the workplace – meaning cheaper fares will help young people struggling with travel costs to get into work.

Prime Minister Andy Burnham said:

Good, affordable transport links are an essential. No one should be priced out of those and left behind.

But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.

Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.

As I said on my first day in office – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives.

Chancellor of the Exchequer, John Healey MP said:

We are capping bus fares at £2 for everyone throughout 2027, slashing fares by a third for millions of people, to help give them the breathing space they need.

This action to ease the cost of living is funded by savings made elsewhere, so there’s no burden to British taxpayers, just pounds going back into their pockets.

Transport Secretary Heidi Alexander said:

This is about making those everyday journeys easier and cheaper. We’re cutting fares by a third to help with the cost of living, open up opportunities and keep people connected to work, school, healthcare and their friends and family.

This action to ease the cost of living is funded through an extra £454m (including funding for devolved governments) which comes from a reprioritisation of DESNZ’s budget, switching funding that had been set aside for international climate finance projects into loans.

Currently, fares have been capped at £3 until the end of March 2027, but today’s move will stop prices jumping next Spring and lower fares to £2 from January. It will extend a cap until the end of 2027, also giving local authorities more time to plan with confidence.

Today’s move comes after the Government announced £100m for free bus travel for all children in England aged 5-15 on participating services this summer. The Great British Summer Savings scheme will help families with the cost of living this August, with further savings at restaurants and attractions in time for the summer holidays.

Local leaders know their areas best, which is why this Government is supporting six mayoral authorities to set up bus franchising, allowing local leaders to take control of their buses to deliver better services fit for their communities. This builds on the success of the Bee Network in Greater Manchester, where single fares have been capped at £2 for the last 4 years.

The government has also set out it will consult on ways to give extra planning powers to mayors that will give them the final say over decisions on public transport including mass transit. These greater powers will help make sure local leaders have the tools they need to meet the needs of local people, and government will be consulting on these measures to make sure that they are designed in the best interest of local communities.

Over £1bn a year has already been committed to bus services for the next three years, and providing this investment nationally means local leaders can use their resources, as well as the tools given to them in the Bus Services Act, to improve bus services locally. This means more services, that are more reliable and go to more places whether it’s in the city or the countryside.

Passengers will be able to benefit from the £2 cap on participating buses from January in all areas of England outside of London. Until 1 January 2027, the majority of single bus fares outside of London will remain capped at £3. The devolved governments will receive funding through the Barnett formula in the usual way.

This cap comes alongside the first rail fare freeze in 30 years announced earlier this year, saving passengers £600 million and commuters on some routes saving more than £300 a year.

Jason Prince, Director of the Urban Transport Group, said:

It’s great to see the new Government recognising the value of the bus to people’s everyday lives from the get-go.

Cheaper fares not only make bus travel more affordable but they can help to significantly drive passenger numbers, so this is a welcome intervention for both bus users and local communities.

We look forward to working with the new Government to explore how fare initiatives and devolved revenue funding arrangements can further boost the bus and deliver better outcomes for passengers.

source: GOV