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England bus fare cap to revert to £2 from January 2027

The government said the extension will cost more than £500 million, with £454 million to be reallocated from the Department for Energy Security and Net Zero.

Reported · Written up by our desk · Europe

England’s bus fare cap will revert to £2 from 1 January 2027 for single fares on participating buses outside London, under a plan announced by prime minister Andy Burnham, BBC Business reported.

The policy is expected to cost more than £500 million. The BBC said the previous Conservative government capped single fares in England at £2 in January 2023, then extended it, while Burnham had also introduced a £2 cap as mayor of Greater Manchester in September 2022.

The BBC noted that the cap had previously been raised to £3 under Labour in January 2025, though some city regions had kept fares at £2. It said an earlier evaluation found the scheme contributed to a 5% share of a 13% rise in bus usage over the first ten months, and that lower-income passengers saw the biggest financial benefit.

BBC Business also reported that the government said £454 million will be reallocated from the Department for Energy Security and Net Zero to fund the change. A shadow chancellor cited funding uncertainty, and the BBC said the original scheme spent £210 million in its first ten months versus a £245 million budget.

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