Andy Burnham Reduces Single Bus Fare Cap to £2 Across England

Single bus tickets in England outside London will be capped at £2 starting January 1st, 2027, cutting top fares by a third for the entire year.

The decision by new Prime Minister Andy Burnham rolls back a previous price increase under Sir Keir Starmer’s administration, which raised the limit to £3. While single tickets remain capped at £3 through to March 2027, the new decision ensures prices drop down to £2 at the start of next year and remain locked through the end of 2027.

Key Takeaways of the Bus Fare Reduction

The lower limit is designed to offer financial relief to commuters, particularly those in isolated or coastal communities where single fares can exceed £10 without price controls. The government estimates that previous fare caps encouraged tens of millions of additional passenger trips.

Prime Minister Andy Burnham said in his announcement that "good, affordable transport links are an essential. No one should be priced out of those and left behind. But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country. Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living."

Chancellor of the Exchequer John Healey stated that the measure focuses directly on household finances:

"We are capping bus fares at £2 for everyone throughout 2027, slashing fares by a third for millions of people, to help give them the breathing space they need. This action to ease the cost of living is funded by savings made elsewhere, so there’s no burden to British taxpayers, just pounds going back into their pockets."

Transport Secretary Heidi Alexander described the reduction as a practical step to lower day-to-day expenses:

"This is about making those everyday journeys easier and cheaper. We’re cutting fares by a third to help with the cost of living, open up opportunities and keep people connected to work, school, healthcare and their friends and family."

How the Policy Is Funded and Political Reactions

The policy is projected to cost over £500 million, and that the funding will be raised by redirecting money within the Department for Energy Security and Net Zero. Rather than handing out international climate finance as direct grants, the money will be provided as loans, allowing the capital to be returned and spent domestically alongside existing Department for Transport funds.

Shadow Chancellor Mel Stride questioned the financial strategy behind the announcement, raising concerns over public spending:

"That is a worrying sign, we need to have a government which is on top of the public finances, not one that is making lots of spending commitments without explaining where the money is going to come from."

Broader Public Transport Initiatives

Alongside the £2 cap, the government announced several complementary public transport measures:

• Children’s Summer Travel: A £100 million initiative to provide free bus travel for children aged 5 to 15 on participating services during August.
• Local Control and Franchising: Support for six mayoral authorities to establish bus franchising models, following the structure of Greater Manchester's Bee Network.
• Planning Authority: Consultations to grant regional mayors greater oversight on regional public transit infrastructure decisions.
• Rail Fare Freeze: A freeze on train tickets to ease costs for daily rail commuters.

While transport advocacy groups welcomed lower prices, organizations like the Campaign for Better Transport emphasized that restoring lost bus routes in rural areas remains crucial to preventing isolated towns from becoming transit deserts.