Government announces £3 bus cap

The government has announced an investment of £1 billion to cap bus fares at £3.

Under plans made by the previous government, funding for the current bus fare cap was due to expire at the end of 2024. Previously fares were capped at £2.

It is hoped the cap will keep bus travel affordable while ensuring the cap is fair to taxpayers.

According to the government no bus fare will exceed £3 and routes where fares are less than £3 will only be allowed to increase by inflation in the normal way.

The cap will be funded by £151 from government until the end of 2025.

The Department for Transport has confirmed an additional £925 million for the 2025 to 2026 financial year to improve bus services across the country.

Local authorities will be able to use the £925 million to introduce new bus routes, make services more frequent and protect crucial bus routes for local communities.

Transport Secretary Louise Haigh said: "Buses are the engines of economic opportunity across the country.  

"We know that reliable, affordable bus services are vital to keeping Britain moving. That’s why the government will cap fares at £3 for an additional year and provide over £1 billion to deliver better bus services.

"This will avoid a cliff-edge at the end of this year and keep fares affordable across the country – improving access to opportunities, particularly in towns and rural areas, while offering value for the taxpayer.

"Our bus revolution will give every community the power to take back control of their services, end the postcode lottery of services and turn the page on 4 decades of failed deregulation."