Andy Burnham has announced a £2 bus fare cap across England from January, a move aimed at easing the cost-of-living crisis. The nationwide cap, currently set at £3 until March 2027, will be reduced to £2 for single tickets, reversing a 2024 increase under Keir Starmer and Rachel Reeves.
Details of the £2 Bus Fare Cap
The cap will apply across all of England except London, where lower fares already exist, and is expected to cost over £500 million. Funding will come from switching international climate finance to loans, savings from the Department for Energy Security and Net Zero, and existing Department for Transport bus funding. The policy mirrors a similar cap in place from January 2023 to December 2024, which Burnham extended in Greater Manchester as mayor.
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Impact on Passengers and the Economy
Burnham stated, “Good, affordable transport links are an essential. No one should be priced out of those and left behind.” The lower fares are designed to give families breathing space during the cost-of-living crisis, helping people access jobs, education, and healthcare. Critics, including the NGO network Bond, argue that raiding the UK aid budget harms vulnerable communities abroad.
| Feature | Previous Cap (2024–2026) | New Cap (2027) |
|---|---|---|
| Price per single fare | £3 (nationwide) | £2 (England except London) |
| Funding source | Government general budget | Climate finance loans & DESNZ savings |
| Duration | Until March 2027 | Throughout 2027 |
Key Takeaways
- £2 bus fare cap from January 2027 across England (excluding London).
- Expected to cost over £500 million, partly from redirected climate finance.
- Aims to reduce travel costs for millions amid the cost-of-living crisis.
- Criticism from NGOs over cuts to international aid budgets.
- Similar cap previously in place from 2023–2024, now reinstated by Burnham.
How the Cap Compares to Previous Policies
The £2 cap is identical to the one Burnham implemented as Greater Manchester mayor. It will reverse the £3 cap set by the previous government, which was deemed unaffordable. The new funding model relies on a mix of international finance reallocation and departmental savings, a strategy that has sparked debate about priorities.
FAQ
When does the £2 bus fare cap start?
The cap takes effect from January 2027 and will be in place throughout the year.
Where does the £2 bus fare cap apply?
It applies to all of England except London, which already has lower fare structures. Devolved governments may receive funding for similar action.
How is the £2 cap funded?
Approximately £400 million comes from switching international climate finance to loans, with additional savings from the Department for Energy Security and Net Zero and existing Department for Transport bus funding.
Andy Burnham’s £2 bus fare cap marks a significant policy shift aimed at making public transport more affordable for working families. While praised for tackling the cost-of-living crisis, the funding method has drawn criticism from international development groups. Travelers across England can expect lower fares starting January, providing tangible relief from rising expenses.
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