Single bus fares outside London will be capped at £2 from 1 January 2027, Prime Minister Andy Burnham has announced during his first week in office.
The Government said the cap will apply for the rest of 2027 and will cut maximum fares by up to a third. Ministers said the measure is aimed at reducing everyday travel costs for work, education, healthcare, childcare and leisure.
The scheme is backed by £400 million in extra funding for the cap outside London. The Government said that without the cap, single fares could rise above £10 on some services on the most expensive routes.
Ministers said buses are an essential service for communities and cited the last £2 fare cap, which they said was linked to an estimated 30 million additional bus journeys in 10 months. The new cap is intended to help people access affordable bus travel and support local economies.
The Government said the cap would particularly benefit passengers in rural and coastal areas, where single fares can be higher and transport links have been insufficient. It also said cheaper fares could help young people facing travel costs as a barrier to entering the workplace.
Chancellor John Healey said the policy would be funded by savings made elsewhere. The Department for Transport said the action is funded through extra funding of £454 million, including funding for devolved governments, from a reprioritisation of the Department for Energy Security and Net Zero budget.