Travel

England bus fares capped at £2 with new government funding

Prime Minister Andy Burnham has announced a fresh £2 cap on most single bus fares across England outside London, starting next year and funded in part by shifting international climate grants to loans.
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Intelligent summary
  • Prime Minister Andy Burnham announced a £2 single bus fare cap for most journeys in England outside London, effective from 1 January 2027 for the full year.
  • The measure is expected to cost over £500 million, funded partly by converting approximately £400 million of international climate grants into loans.
  • The policy builds on Burnham's earlier £2 cap introduced in Greater Manchester in 2022 and highlights a shift towards domestic cost-of-living priorities.

The first thing that hits you is the price. I remember standing at a bus stop in Manchester a few years back, coins heavy in my pocket, wondering if the fare had crept up again. That familiar hesitation before tapping my card. On 22 July, Prime Minister Andy Burnham stepped up with news that might ease some of that daily grind.

Most single bus fares in England outside London will drop to a flat £2 from 1 January 2027 and stay there for the whole year. The current national cap sits at £3 until the end of March 2027, though some places already run cheaper. London keeps its own system, untouched by this change.

I felt a flicker of scepticism when I first heard it. Another promise on transport? Yet Burnham knows this territory well. As mayor of Greater Manchester he rolled out a similar £2 cap back in 2022. Now he is taking it national.

No one should be priced out or left behind when it comes to affordable transport links.

His words landed with quiet force during the announcement. Then came the second line that made me smile despite myself.

I have done it before and I will do it again now: a £2 cap on bus fares for millions across the country.

The numbers behind it tell a more complicated story. The policy is expected to cost more than £500 million. To make it work the government is pulling roughly £400 million by converting international climate grants into loans, with the rest coming from existing transport budgets and savings found in the Department for Energy Security and Net Zero.

Short-term relief meets longer questions

Climbing onto a bus that no longer empties your wallet quite so quickly offers real, immediate relief for families, shift workers and anyone juggling weekly budgets. I can already picture the difference it might make on wet mornings in northern towns or slow afternoons crossing the Midlands. The physical sensation of not wincing at the fare display is small but tangible.