In a speech made on Monday ahead of the budget, Prime Minister Kier Starmer announced a new measure to keep bus fares affordable across the country.
He confirmed that from 1st January 2025, single bus fares will be capped at £3, ensuring that passengers benefit from accessible travel options while the government commits over £1 billion to support bus services.
The £2 cap, which had been introduced earlier to help ease travel costs, was initially scheduled to end on 31st December 2024. However, this new £3 cap will extend until the end of 2025, providing an additional year of affordable fares for millions of commuters.
Funding to support rural and town routes
The Prime Minister emphasised that the fare cap would help communities far and wide, particularly benefiting those in rural areas and smaller towns where affordable transport can make a significant impact. The £3 cap will allow passengers to save up to 80 per cent on some routes, enabling more people to connect with opportunities beyond their local areas.
Under this new structure, routes with fares below £3 will only increase at the standard inflation rate, ensuring affordability remains a priority. No fare on included routes will exceed the £3 cap, helping to promote bus travel as a reliable and economical option for more people.
Legislative changes for local control
In addition to the funding and fare cap, the government’s commitment to a “bus revolution” will include the introduction of a new Buses Bill.
This legislation aims to empower communities to take back control of their local bus services, reversing what the Prime Minister described as “four decades of failed deregulation.”
