Bus fare cap to rise to £3 across England under new budget plan

The maximum bus fare in England is set to rise to £3, following an announcement by Prime Minister Sir Keir Starmer.

The new limit, which will be introduced in the next Budget, represents an increase on the current £2 cap which the previous Conservative government applied as a measure of the cost of living.

The £2 cap was originally due to expire at the end of December, sparking speculation that passengers could face a sharp rise in prices if the cap is not renewed. Sir Keir confirmed that the £3 cap would cover most bus journeys across England and would remain in place until the end of 2025. He highlighted the importance of affordable bus travel, especially in rural communities where many people rely on buses for their daily commute.

Nearly 3.4 million people across England use buses regularly. Concerns have been raised that removing the current cap could lead to a significant jump in prices, reversing the assistance provided over the past two years.

Despite the national increase, bus fares in London and Greater Manchester will remain unchanged, with fares capped at £1.75 and £2 respectively, as these areas have separate funding arrangements through TfL and local authorities.

The Passenger Transport Association welcomed the decision to extend the cap, noting that the increase from £2 to £3 prevents a “cliff-edge” scenario for passengers who may have faced a sharp price rise at the end of the year. However, they acknowledged that the new cap would still pose challenges for those who rely heavily on buses as their main means of affordable travel.

Before the announcement, Bill Heron, chairman of Eastern Transport Holdings, which runs bus services in Essex, warned that removing the £2 cap would have caused problems. In an interview with the BBC’s Today programme, he said that a return to previous fare levels of £5 or £7 would have caused hardship for many and perhaps prevented people from using buses altogether.

Environmental group Greenpeace criticized the decision to raise the cap, calling it a “difficult decision” that the government did not need to make. Paul Moroso, senior transport campaigner at Greenpeace UK, said raising the fare cap was counterproductive from political, economic and environmental points of view.

“Buses are a critical lifeline for millions of people, especially those with low incomes,” Moroso said. “A government that truly prioritizes the needs of the poorest sections of society will rethink this decision at the first opportunity.”

The new bus fare cap will come into effect early next year, aiming to maintain affordability while addressing operators’ concerns about the sustainability of the £2 limit. However, campaigners and commuters will be watching closely to see how the new fares affect public transport use across England.