The Department for Transport has announced that bus passengers in England will benefit from reduced fare caps starting earlier than initially planned, under the direction of Labour Party leader Andy Burnham, who serves as a regional mayor and influential political figure.
To alleviate the financial burden faced by many and provide vital breathing room in the current cost of living crisis, the £3 bus fare cap will end three months ahead of schedule, closing on 31 December 2026 instead of March 2027. Subsequently, the more affordable £2 fare cap will take effect from 1 January 2027 through to the end of that year.
This move aims to encourage greater use of bus services by making travel more affordable. Labour MP Callum Anderson, representing Buckingham and Bletchley, has inquired in the House of Commons about the impact of lower bus fares on car usage.
In response, Simon Lightwood, Labour MP for Wakefield and Rothwell, shared findings from the evaluation of the £2 fare cap pilot, which ran from January 2023 to December 2024. Data indicated that reduced fares persuaded some travellers to switch from other transport modes to buses. Across four surveys conducted during this period, 29% to 38% of respondents who made additional bus journeys reported that, without the fare cap, they would have used alternative transport methods.
Notably, cars were the most commonly cited alternative. Between 21% and 31% said they would have driven as a car or van driver, while an additional 15% to 18% would have travelled as passengers in vehicles.
Mr Burnham emphasised the importance of accessible and affordable public transport, stating, “Good, affordable transport links are essential. No one should be priced out of those and left behind.”
He added: “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.”