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The Future of England’s £2 Bus Fare Cap: A Call for Cautious Consideration

In light of recent media reports suggesting that the £2 bus fare cap in England may be scrapped in the upcoming Budget, Graham Vidler, Chief Executive of the Confederation of Passenger Transport (CPT), has voiced his concerns about the potential implications for bus passengers and the industry as a whole.

Update at 12:07pm on 28/10/2024: The bus fares cap in England will be raised to £3 in the upcoming Budget, Prime Minister Sir Keir Starmer has announced.

A person stands at a bus stop, glancing at their phone. The advert promotes affordable public transport services with a quote celebrating the £2 bus fare cap. The poster includes a bus illustration and links to more information, ensuring travelers stay informed amidst potential fare increases.
gov.uk

Vidler emphasised that abruptly removing the £2 fare cap would be catastrophic for countless bus users,

“Suddenly scrapping the £2 bus fare would be a disaster for bus passengers. In addition to putting up the price of everyday journeys overnight, it would undermine the viability of hundreds of bus routes.
“The £2 fare cap has been a successful and popular policy. To capture the benefits for the long-term and to avoid a damaging cliff edge for bus users, the fare should be phased out over the course of 12 months. The Treasury should also consider a targeted scheme to create a long-term legacy – for example, an intervention to make fares permanently cheaper for young people.
“Two thirds of public transport journeys are by bus, and buses are heavily used by people who have felt the brunt of the cost of living crisis. Yet public funding to support bus fares in England is far lower than in countries across continental Europe.”

The £2 fare cap, introduced on the 1st of January 2023, has been a popular initiative aimed at making public transport more accessible, particularly amid the ongoing cost of living crisis. It has significantly increased bus patronage; a KPMG study conducted earlier this year found that 37% of respondents reported using buses more frequently due to the cap, with a quarter of those choosing buses over their cars.

CPT

Vidler also highlights a pressing concern: public funding for bus fares in England remains significantly lower than in many European countries. This discrepancy not only impacts service quality but also the affordability of travel for everyday commuters, especially those most affected by rising living costs.

The CPT’s position is clear; the removal of the £2 fare cap without a strategic plan could lead to increased costs for passengers and jeopardise the future of many essential bus services. As discussions continue in Parliament and among policymakers, it is vital for all stakeholders—transport managers, bus drivers, and enthusiasts alike—to advocate for a balanced approach that considers the needs of bus users while ensuring the sustainability of the industry.

As the transport sector gears up for potential changes, we encourage ongoing dialogue and awareness. The future of England's public transport is not just a matter of fares; it's about ensuring accessibility, sustainability, and the long-term viability of our essential bus services.

Following the announcement by Prime Minister Sir Keir Starmer that the Bus Fare Cap will increase to £3 in the upcoming Budget, Chief Executive of CPT, Graham Vidler, stated,

"The move to a £3 fare cap for one year reflects the government’s intent to gradually transition fare policy, but it must be backed by a consistent funding strategy. Without this support, we risk seeing essential services, especially in rural and underserved areas, become unsustainable over time. Affordable travel should not come at the cost-of-service viability.”

CPT will continue to engage with government and local authorities to advocate for the funding and support needed to maintain and strengthen the UK’s bus network. By aligning fare structures with sustained investment, we can protect essential routes, ensure affordability, and promote a reliable bus network that serves communities across the country.”

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