Most bus fares across England will be capped at £2 from January, Prime Minister Andy Burnham announced on Thursday. The government stated that the policy, estimated to cost over £500 million, is intended to help households manage the rising cost of living.

The fare cap aims to provide relief for passengers grappling with increased expenses. This move revisits a similar measure introduced earlier. At the beginning of 2023, the England-wide bus fare cap was raised to £3 under the previous Labour government led by Sir Keir Starmer, though fares in Liverpool and Manchester were maintained at £2.

Prime Minister Burnham emphasized the importance of affordable transport links, stating that lower fares will assist people in reaching their destinations. Transport Secretary Heidi Alexander noted that the measure offers "a little bit of hope" during a period of high living costs, exacerbated by fuel price spikes. However, she acknowledged it is not a complete solution to economic challenges.

The new £2 cap will apply to participating bus services outside of London beginning in January. London's non-discounted single bus journey fare currently stands at £1.75. The government anticipates that the £2 cap will particularly benefit passengers in rural and coastal areas, where single fares can be substantially higher.

Campaign groups have highlighted ongoing issues in rural areas. The Campaign for Better Transport noted that these regions continue to experience fewer bus routes and services, having been disproportionately affected by council funding cuts over the past decade compared to urban areas. Data from the County Councils Network indicates that bus service mileage in these areas decreased by 18% between 2019 and 2024.

Michael Solomon Williams of the Campaign for Better Transport stressed the need for restoring lost services, particularly those impacting rural communities. The government has indicated that Northern Ireland will receive additional funding, though its allocation to public transport is not mandated. Scotland and Wales are set to receive equivalent funding to England for their bus fare cap schemes.

The Scottish government, which previously trialed a £2 cap in the Highlands and Islands, is considering nationwide legislation. In Wales, single fares are already capped at £1 for individuals under 21. Bus ridership has not fully recovered to pre-pandemic levels.

When initially implemented in 2023, the £2 cap served a dual purpose: alleviating cost of living pressures and encouraging a return to public transport post-pandemic. The Office for National Statistics reported that the scheme contributed to reducing inflation that year and was associated with a 5% increase in bus usage during its first ten months, with lower-income passengers seeing the greatest financial benefit. However, its value for money was questioned, and savings varied significantly based on pre-cap fare levels.