In a significant move to transform public transport, the UK Government has pledged more than £1 billion to safeguard essential bus routes and ensure affordability with a capped fare of £3 for single journeys across England (excluding London). This long-term investment, which covers both metropolitan and rural areas, aims to prevent price hikes, protect crucial services and provide more reliable public transport options, particularly for communities where buses are often the primary travel option.
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| Tom Harrison (Bus Ambassador) |
Announced on the 28th of October, the funding builds on previous efforts to support local transportation and demonstrates a strong commitment to developing dependable, equitable and affordable bus networks for millions. With these plans in place, England’s bus passengers can look forward to a capped fare extending through the end of 2025, a move that officials say will both stabilise the sector and improve quality and reach of services.
Here’s a breakdown of the Government’s allocation in this latest package:
Local authorities across the country are gearing up to put this investment to work, and next month, specific allocations will be finalised for each area.
Prime Minister Keir Starmer confirmed that single bus fares will remain capped at £3, a move that, according to some estimates, could save passengers up to 80% on certain routes. Without this intervention, fares were projected to increase significantly, especially on popular intercity routes like Leeds to Scarborough. This fare cap will benefit both urban and rural passengers, enabling reliable, budget-friendly travel across England and promoting consistent use of public transport.
The fare cap extends the Government’s ongoing initiative to stabilise fares. Without it, many local operators and commuters alike could have faced a steep “financial cliff-edge” as 2024 drew to a close. Instead, with the Government’s commitment to the £3 cap through 2025, affordable bus travel is assured, with particular benefits for rural and low-income communities who often lack alternative transport options.
Here are a few illustrative examples of the fare savings passengers can expect:
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| Tom Harrison (Bus Ambassador) |
While the fare cap represents a significant boost for passengers, a substantial portion of this £1 billion package goes beyond fares. The Department for Transport (DfT) has earmarked £925 million to fortify bus services across England, providing local authorities with the resources needed to introduce new routes, boost service frequency and prevent cuts to critical routes.
In some areas, local authorities may choose to allocate this funding toward more innovative solutions, such as demand-responsive transport, which can efficiently serve areas with lower ridership. For example, Metro Mayors and local authorities have the latitude to use these funds creatively to best meet the needs of their respective regions—similar to successful initiatives like the Bee Network in Greater Manchester.
Transport Secretary Louise Haigh expressed her optimism about these changes, saying:
“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.”
In recent years, Manchester and Liverpool have spearheaded fare cap initiatives that have laid the groundwork for the national £3 cap. Greater Manchester was the first to introduce a £2 fare cap as part of its Bee Network plan, aimed at making public transport more affordable and accessible. Liverpool City Region followed with a similar £2 cap for adult single journeys in the same month. These regional measures, championed by local Metro Mayors, showcased the benefits of capped fares for community access and affordability, influencing the national policy that followed.
In Manchester, Mayor Andy Burnham has confirmed that the £2 bus fare cap will remain in place throughout 2025, pending a mid-year review. This decision reflects the city's commitment to providing affordable public transport and ensuring that any profits from rising patronage benefit local residents rather than private operators.
Talking about the news, Mayor Andy Burnham, told Bus Ambassador,
“Because of the decisions we have taken, and the progress we have made, Greater Manchester is in a different position to other areas across England when it comes to bus funding and bus fares. We can confirm that we are sticking with the £2 cap for the whole of 2025, but subject to a mid-year review. By maintaining this approach, we will continue to help our residents in these difficult times.”
In addition to the funding announcement, the Government plans to introduce a Buses Bill in the next parliamentary session. This legislation aims to address what many describe as the “postcode lottery” in bus services, where access and service quality vary widely across regions. Under the proposed changes, local authorities will have more control over bus networks, potentially enabling them to emulate the success of the publicly controlled systems in Greater Manchester and London.
Since its launch, Greater Manchester’s Bee Network has been a model of success, reporting a 5% increase in ridership since coming under public control. Through the new Buses Bill, other regions could achieve similar outcomes by tailoring bus networks to meet local needs, particularly for underserved communities that have long suffered from limited transport options.
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| Tom Harrison (Bus Ambassador) |
The renewed focus on local authority control of bus services marks a turning point from four decades of deregulation, during which time thousands of services were cut and the average miles driven by buses dropped significantly—by around 300 million since 2010. The Government’s reinvigorated commitment to public transport intends to reverse these trends by ensuring buses are not only a viable option for all but also one shaped by the communities who use them.
Transport Secretary Haigh elaborated on this, emphasising the Government’s mission to make bus travel more equitable and accessible:
“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 four decades of failed deregulation.”
This approach represents a shift towards a more community-oriented, accountable bus system, where passengers can have a more active role in how their local transit services operate.
David Sidebottom, director at the transport watchdog Transport Focus, welcomed the move. He stated:
“We know that bus passengers want simpler, better value for money fares, and buses provide a lifeline for so many people up and down the country. Our research shows the fare cap is having a big impact in helping more people get around by bus. We welcome the wider investment in services, and the announcement of a new £3 cap on bus fares will provide certainty for many people who are struggling and worried about the cost of travel.”
The £3 cap is already making a difference, helping countless people across England save money on essential travel. And with the added support from Transport Focus, there’s evidence that these changes are not only valued but will continue to grow in importance as people seek affordable, accessible transport options in their daily lives.
Looking beyond 2025, the Government plans to explore targeted initiatives that could maintain affordable travel for specific groups, like young people. This would ensure that public transport remains inclusive, viable and beneficial for those who rely on it most.
With this significant investment, capped fares and upcoming legislative efforts, the Government’s plan to transform bus services across England is gaining momentum. The focus on affordability, local authority empowerment and more reliable services promises a brighter, more accessible future for public transport across the country. For millions of people, the road ahead just got a little smoother.
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