Prime Minister Andy Burnham has announced plans to introduce a nationwide £2 cap on single bus fares across England from January 2027, describing the measure as part of his Government's drive to help households with the cost of living.
The proposal would reduce the current £3 cap back to £2 for a period of 12 months, saving regular bus passengers money and making public transport more affordable. Ministers say the policy is intended to support working people, improve access to jobs and services, and encourage greater use of buses.
The Government says the scheme will be funded through savings made elsewhere in Whitehall, with money redirected from departmental budgets rather than through additional borrowing. However, opposition parties have questioned whether the funding is sustainable and have called for further details on how the policy will be financed.
The £2 fare cap mirrors a scheme previously championed by Burnham during his time as Mayor of Greater Manchester, where lower bus fares formed part of the Bee Network's public transport reforms. Burnham has argued that affordable bus travel helps connect communities while easing pressure on household finances.
If approved, the nationwide fare cap will come into force on 1st January 2027, becoming one of the first major cost-of-living measures introduced by Burnham's new Government.