Bus fares in England will rise to £3, following an announcement by Prime Minister Sir Keir Starmer.
The new cap, which will be introduced in the next Budget, marks an increase from the current £2 cap used by the previous Conservative government 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 steep fare increases if the cap is not renewed. Sir Keir has confirmed that the £3 cap will cover most bus journeys across England and 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.
Around 3.4 million people across England use buses regularly. Concerns have been raised that a reduction in the existing rate could lead to a significant increase in fares, reversing the support provided two years ago.
Despite the national increase, bus fares in London and Greater Manchester will remain unchanged, at £1.75 and £2 respectively, as these areas have separate funding schemes with Transport for London and local authorities.
The Confederation of Passenger Transport has welcomed the decision to extend the cap, saying that the increase from £2 to £3 prevents a “edge” situation for passengers who may face a rise in fares at the end of the year. However, they acknowledged that the new cap will still pose challenges for those who rely heavily on buses as their main means of affordable travel.
Before the announcement, Bill Hiron, chairman of Eastern Transport Holdings, which operates bus services in Essex, warned that removing the £2 cap would lead to problems. A return to previous fares of £5 or £7 would cause hardship for many and could prevent people from using buses altogether, he said in an interview on the BBC’s Today programme.
The environmental organization Greenpeace has criticized the decision to increase the fund, describing it as a “difficult decision” that the government did not have to take. Paul Morozzo, senior transport campaigner at Greenpeace UK, said raising fares was not harmful from political, economic and environmental perspectives.
“Buses are a vital resource for millions of people, especially those with low incomes,” Morozzo said. “A government that prioritizes the needs of the poorest in society can reconsider this decision at the earliest opportunity.”
The new bus fares will come into effect early next year, with the aim of maintaining affordability while addressing concerns from operators about the sustainability of the £2 limit. However, campaigners and commuters will be watching closely to see how the new prices affect the use of public transport across England.