Andy Burnham is set to reveal the reinstatement of the £2 bus fare cap, which will reduce daily travel expenses for numerous passengers. Single fares for buses outside London will be capped at £2 starting in January, as part of the new Prime Minister’s efforts to alleviate the financial burden on voters.
The government warned that without the fare cap, prices could escalate to over £10 on certain routes. Emphasizing the importance of affordable transportation, the Prime Minister stated that access to good transport links is crucial and should not be unaffordable for anyone.
The £2 fare cap was initially introduced by the Tories in 2023, with funding secured until the end of 2024. However, former Chancellor Rachel Reeves raised it to £3 in an attempt to balance the budget. The current cap, covering approximately 5,000 bus routes across England, was supposed to remain until March 2027.
Andy Burnham, who previously implemented a £2 fare limit on buses during his tenure as Greater Manchester Mayor in 2022, is now advocating for the nationwide cap. The government plans to allocate an additional £400 million to support this initiative, with the expectation that millions of commuters will benefit from the reduced fares outside London.
The move is anticipated to have a significant impact on passengers in rural and coastal areas, where fares are typically higher due to limited transport options. John Healey, the newly appointed Chancellor, highlighted that capping bus fares at £2 until 2027 will decrease costs for millions of individuals without burdening taxpayers.
Transport Secretary Heidi Alexander emphasized that the fare reductions aim to make daily journeys more affordable and convenient, supporting individuals with their cost of living challenges and ensuring continued access to essential services and social connections.
The government disclosed that the funding for the fare cap will be sourced from adjustments in the Department for Energy Security and Net Zero’s expenditure on international climate change projects. This decision follows Andy Burnham’s earlier announcement to remove VAT from electricity bills this autumn, demonstrating his commitment to easing financial pressures on the public.
As Burnham leads a “cost-of-living government,” his policies are expected to result in tangible savings for households, with an estimated £45 reduction in the average bill starting from October 1. The government is prioritizing initiatives that directly address the affordability concerns faced by many households amid rising living costs.
