Prime Minister Andy Burnham has announced that most single bus fares across England will be capped at £2 from January, cutting the current £3 cap and reversing a 2024 decision by then-Chancellor Rachel Reeves. The measure is one of Burnham's first major policy moves since taking office.
Details of the £2 cap
The nationwide cap will apply to single bus tickets, except in London, where transport is already regulated separately. Burnham, who previously implemented a £2 cap as Mayor of Greater Manchester, said the policy would help millions of people with the cost of living. The scheme will cost £500 million, including funding for Scotland and Wales to take similar action. The money will come from switching investment in international climate finance to loans and from savings in the Department for Energy Security and Net Zero budget.
Political context and reaction
Chancellor John Healey said the fare reduction would benefit millions and was fully funded without burdening taxpayers. He also announced a VAT cut on domestic energy bills, saving families an average £45 a year. However, former minister Darren Jones criticised the funding claim, noting that money for the scrapped digital ID scheme had not been identified. Transport Secretary Heidi Alexander said the cap would make everyday journeys easier and cheaper.
Shadow Chancellor Mel Stride accused Burnham's government of wanting to return to 1970s-style spending and state intervention, warning of higher taxes and borrowing. The Conservative Party criticised the economic agenda, with Stride claiming Burnham was constrained by backbenchers opposed to welfare reform.
Impact on local areas
Many areas of England had already maintained lower caps: Liverpool and Manchester kept the limit at £2, while the North East capped fares at £2.50. Burnham's Bee Network, launched in 2023, brought buses under local control through franchising in Greater Manchester. The new national cap builds on this approach, aiming to provide affordable transport across the country.
