Bus fare cap in England to be returned to £2 in 2027

Prime Minister Andy Burnham has announced the policy, which will be introduced in January.

The nationwide cap is currently set at £3 until the end of March 2027.

However, some areas – including London and Greater Manchester, where Burnham set a £2 limit as mayor – already have lower top rates for single tickets.

Single bus fares across England will be capped at £2 from January, Prime Minister Andy Burnham has announced.

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… pic.twitter.com/dN3hhZuGls

— Good Morning Britain (@GMB) July 22, 2026

A £2 cap had been in place between January 2023 and December 2024, but the Labour administration argued it was not affordable.

It was initially meant both as a cost of living measure and to encourage people back on buses in the wake of the Covid pandemic.

Discussing the policy, 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."

Prime Minister Andy Burnham has announced that most bus fares in England will be capped at £2 from January 2027.

Chief political correspondent Henry Zeffman had more details on #BBCBreakfasthttps://t.co/3LotlOr4H5 pic.twitter.com/Ksp2Kr0uP6

— BBC Breakfast (@BBCBreakfast) July 22, 2026

How will the bus fare cap be funded?

The cap will remain in place throughout 2027 and is backed by £454 million of funding, including money to allow devolved governments to take similar action.

The total cost of the scheme is expected to be more than £500 million, with the rest coming from Department for Transport funding already allocated to buses.

Of the funding, £400 million will come from switching investment in international climate finance to loans, with the remainder from savings in the Department for Energy Security and Net Zero budget.

Chancellor John Healey said “millions of people” would benefit from fares being slashed by a third and insisted the measure could be paid for.

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Transport Secretary Heidi Alexander said the decision would make "everyday journeys easier and cheaper."

Meanwhile, Shadow Chancellor Mel Stride said the government has not actually specified where the money will come from to fund the bus fare cap extension.

Speaking to BBC Breakfast, he said: "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."

Are you happy to see the bus fare cap returned to £2? Let us know in the comments.