Impact of £1 Fare Cap Increase on Bus Passengers in England

From Wednesday, many bus passengers in England will see a rise in single fares as the cap increases from £2 to £3, marking a significant change in public transport costs. This fare adjustment, which aims to support rural and community bus services, comes after previous limits were established under the Conservative government amid a cost-of-living crisis. Campaign groups have voiced concerns about the financial burden this increase could place on low-income riders, describing it as a ‘costly start’ to 2025.

The new £3 cap will stay in effect until the end of 2025, while fares remaining below this threshold can only increase in line with inflation. Buses serve as the most utilized form of public transport in Great Britain, yet local councils’ funding cuts have resulted in reduced bus services, with bus mileage down about a quarter from 2005 levels.

Previously, there were rumors that Chancellor Rachel Reeves might eliminate the fare cap altogether during her first Autumn Budget. Silviya Barrett from the Campaign for Better Transport emphasized that, while retaining the cap was favorable, the rise to £3 is a significant development and urged the government to create a sustainable solution to prevent future hikes once the cap expires.

Passengers expressed worries about the increased fare’s effect on low-income individuals, though local authorities have the ability to subsidize fares to maintain lower caps. For instance, Northumberland, Tyne and Wear, and County Durham will cap single journeys at £2.50, while West Yorkshire will keep fares at £2 until March before increasing to £2.50. In contrast, London and Greater Manchester fares will stay at £1.75 and £2, respectively, due to different funding structures.

Alison Edwards from the Confederation of Passenger Transport indicated that many bus users could still pay below £3 per journey, particularly through cheaper season tickets for regular commuters. The government is investing over £150 million this year to support the fare cap, complemented by the Bus Services Bill currently progressing through Parliament, which aims to ensure regular bus services in towns with populations over 10,000. Local transport minister Simon Lightwood reiterated that buses are crucial for community access to work, healthcare, and social connections, stressing the government’s effort to maintain affordable transportation options.