The Prime Minister has announced the single bus fare cap in England will be raised 50% to £3 in the Budget.
Sir Keir Starmer pointed out the increase on the current limit of £2 was due to expire at the end of December, with the new £3 cap in place until the end of 2025.
In a speech he said said: “I do know how much this matters, particularly in rural communities where there is heavy reliance on buses.”
Bus fares in London and Greater Manchester are not affected by the change because they have their own pricing mechanisms.
Reacting, the Confederation of Passenger Transport said: “We are pleased that the government has taken steps to implement a managed exit from the £2 fare cap in line with our proposals. While it will avoid the dangers of a cliff edge at the end of this year, an increase to £3 will still present challenges for many passengers, particularly those who rely on buses as their primary means of affordable travel
As the new fare cap takes effect, the industry will work closely with government and local authority partners to ensure passengers understand how fares will change and are informed about the range of ticketing options available to help manage travel costs.
While this increase represents a step toward making the fare cap more sustainable, CPT remains concerned about the potential impact on services if fare changes are not matched with long-term funding. Graham Vidler, Chief Executive of CPT, stated, “The move to a £3 fare cap for one year reflects the government’s intent to gradually transition fare policy, but it must be backed by a consistent funding strategy. Without this support, we risk seeing essential services, especially in rural and underserved areas, become unsustainable over time. Affordable travel should not come at the cost-of-service viability.”
CPT will continue to engage with government and local authorities to advocate for the funding and support needed to maintain and strengthen the UK’s bus network. By aligning fare structures with sustained investment, we can protect essential routes, ensure affordability, and promote a reliable bus network that serves communities across the country.”
(File picture – Reading Council)
