£3 cap for single bus far extended to March 2027

The £3 cap for single bus fares in England is to be extended until March 2027, Chancellor Rachel Reeves announced during her Spending Review statement in the Commons on Wednesday. The cap, which was due to end in December, will now continue until “at least” March 2027, said Reeves.

The initial bus fare cap was first introduced by the previous Government in January 2023, with a £2 cap for a single journey regardless of time or distance. The cap was extended twice by the Conservative Government, before being increased to £3 by the current Labour Government in October 2024.

Last month Transport Secretary Heidi Alexander had intimated that the £3 bus fare cap would be scrapped at the end of this year.

During a Transport Committee hearing, Alexander said the previous Government had in place a £2 bus fare cap to try to stimulate bus ridership again after the Covid-19 pandemic. “When we came into government, I think it was the right decision to provide that £3 cap in the short term. We know how difficult unforeseen price hikes are for people. They are often the hardest thing to deal with, so providing some certainty over the short term was the right thing to do.” (LTT 914)

The Government previously said that, without the cap, fares could rise by as much as £12 for a journey between Leeds and Scarborough, or £5.50 for a ticket between Hull and York.

Greater Manchester Combined Authority has retained the £2 bus fare cap while West Yorkshire Combined Authority increased it to £2.50 in March.