Burnham pledges £2 bus fare cap across England from January 2027
The measure, which excludes London, is backed by £454m in government funding and is expected to cost more than £500m in total.
Prime Minister Andy Burnham has announced that single bus fares across England will be capped at £2, effective from January 2027. The policy reverses a fare increase implemented by the previous Labour administration under Keir Starmer and Rachel Reeves in 2024, which had raised the national cap to £3. The cap applies to England excluding London, where separate fare structures exist.
The measure is backed by £454m in funding, with approximately £400m sourced by switching international climate finance investments to loans. The remaining funds will come from savings within the Department for Energy Security and Net Zero budget. The total cost of the scheme is expected to exceed £500m, with additional funds allocated from the Department for Transport.
Chancellor John Healey stated the measure is funded by savings elsewhere, imposing no additional burden on taxpayers. He insisted the action to ease the cost of living would return pounds directly into the pockets of millions of people. Transport Secretary Heidi Alexander described the move as making everyday journeys easier and cheaper.
The nationwide cap is currently set at £3 until the end of March 2027. A £2 cap had been in place between January 2023 and December 2024 but the incoming Labour administration argued it was not affordable at the time. However, some metro mayors, including Burnham, extended the lower limit in their local areas.
London and Greater Manchester already have lower top rates for single tickets, with Burnham having set a £2 limit as mayor of Greater Manchester. The funding package also includes money to allow devolved governments to implement similar fare caps.