Government extends £2 bus fare cap and protects vital services

Millions of passengers across England will continue to ‘Get Around for £2’ and access vital bus services thanks to £500 million in government funding, supporting people with the cost of living and ensuring long-term stability in the sector.

The Transport Secretary Mark Harper today (17 May 2023) confirmed £300 million to protect vital routes and improve services until 2025 that people rely on for work, education, medical appointments and shopping.

To help people with cost of living pressures and save on everyday travel costs, the government will also provide up to £200 million to continue capping single bus fares at £2 outside London until the end of October 2023 and then at £2.50 until 30 November 2024 – when the government will review their effectiveness and future bus fares.

The Office for Budget Responsibility (OBR) estimates that inflation will be halved by the end of this year, and capping fares at £2.50 until November 2024 will create longer-term certainty for bus users over the next year. The fare cap will be reviewed ahead of November 2024.

The move is an essential part of the government’s Help for Households initiative to support everyone through the increased cost of living, and will particularly benefit those on lower incomes who take nearly 3 times as many bus trips than those on higher incomes.

During the pandemic, bus usage dropped as low as 10% of pre-pandemic levels and, while passenger levels have recovered to around 85 to 90%, the fare cap aims to encourage people back on the bus, which can help reduce congestion and emissions.

The additional funding announced today will be shared between local transport authorities and bus operators to protect and improve routes across England and demonstrates our commitment to returning bus sector to a long-term sustainable financial footing. The new funding models will protect vulnerable routes while allowing local authorities and operators to determine the routes that work for local areas.

Source: Department for Transport