Most bus fares in England to be capped at £2 from January

The bus fare cap in England will revert to £2 from January, new prime minister Andy Burnham has announced.

The government says the policy, which is expected to cost more than £500m, will “help with the cost of living and give people the breathing space they need”.

At the start of last year, the England-wide bus fare cap rose to £3 under Sir Keir Starmer’s Labour government, although in Liverpool and Manchester fares were held at £2.

Burnham said affordable transport links were an essential, adding: “Lower fares will help people get to where they need to.”

The measure gives people “a little bit of hope” in a time when many are grappling with higher living costs – especially after fuel costs spiked as a result of the US-Iran war, transport secretary Heidi Alexander told the BBC’s Today programme.

However, she admitted the measure was “not the whole solution”.

The new cap will take effect from January next year for fares on participating buses outside of London. The cost of a non-discounted single bus journey in London is £1.75.

The Burnham government said going back to a £2 cap should particularly help passengers in rural and coastal areas, where single fares can be higher.

The Campaign for Better Transport said rural areas were still suffering from fewer bus routes and services, adding that such areas had been more affected by council cut backs in the last decade than urban zones.

Services in those areas – as measured by vehicle miles – decreased by 18% between 2019 and 2024, according to the County Councils Network, which represents 39 unitary and county councils across England.

“What we need to see is the replacing of those lost services which have particularly affected those in rural areas,” Campaign for Better Transport’s Michael Solomon Williams said.