Single bus fares across England will be capped at £2 from January, Prime Minister Andy Burnham has announced, as he continues to introduce measures to tackle the cost of living.
The nationwide cap is currently set at £3 until the end of March 2027, although some areas – including London and Greater Manchester, where Mr Burnham set a £2 limit as mayor – have lower top rates for single tickets.
The £2 cap reverses an increase put in place by Keir Starmer and Rachel Reeves in 2024, and will be in place throughout 2027.
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The same cap was in place between January 2023 and December 2024 but the former prime minister and chancellor argued it was not affordable.
Mr Burnham said: “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.”
The move has been welcomed by Oxford Bus Company's managing director Luke Marion.
He said: "We support measures which help make bus travel more accessible and attractive for passengers, so welcome the early interest that the new Prime Minister is showing in the bus sector.
“In addition to Oxford Bus Company, our sister businesses in the Go Thames Valley family – Thames Travel, Carousel Buses and Pulhams Coaches – have been committed to the current £3 fare cap scheme, and to the previous £2 national cap that preceded it.
“The initiative has seen an increase in bus patronage, which has enabled us to invest in improving our network for customers.
“We look forward to hearing more detail about the £2 fare cap due to come into place in 2027 and working closely with the new government to make the new scheme a success.
“The national bus cap initiative has now been extended six times since it began as a three-month offer in January 2023, so a long-term strategy is the sensible next step to ensure continuity and stability for passengers and the industry.”
Oxford Bus Group - which ran Oxford Bus Company - has been renamed to reflect its network expansion.
Now operating as Go Thames Valley, the transport group said the new identity better represented its expanding network spanning Oxfordshire, Buckinghamshire, Berkshire, Gloucestershire, the Cotswolds and beyond.
Stagecoach also runs buses in the region but has not yet commented on the bus fare cap announcement.
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