Millions of people across England will benefit from cheaper bus travel after the Labour Government announced that single bus fares will be capped at £2 from 1 January 2027, helping families save money on everyday journeys.
Backed by an additional £400 million of government investment, the new cap will replace the current £3 maximum fare and remain in place for the rest of 2027. The move means no single ticket on participating bus services will cost more than £2, reducing the cost of travel by up to a third.
The measure is part of Labour’s wider plan to ease the pressure on household budgets while improving access to work, education, healthcare and leisure. It will particularly benefit people who rely on buses for longer journeys, including those living in rural and coastal communities.
The announcement builds on a package of support for passengers already introduced by the Government. This summer, children aged 5 to 15 are able to travel free on participating bus services, backed by more than £100 million in funding to help local transport authorities and operators protect services and keep fares low.
Labour has also delivered long-term reforms through the Bus Services Act, giving local authorities greater powers to improve and expand bus networks through franchising or stronger partnerships with operators.
The new £2 fare cap is the latest step in Labour’s commitment to making public transport more affordable, improving connectivity, and helping people with the rising cost of living.
Leader of the Newcastle Labour Group, Cllr Ged Bell welcomed the news saying:
“Lowering the bus fare cap is one way to give families across Newcastle some breathing space. It’s the most used form of public transport which millions of people across the country use to get to work, school and see family and friends. The Labour Government is making those everyday journeys that little bit easier.”
The announcement demonstrates Labour’s commitment to investing in public transport while putting more money back into people’s pockets through practical measures that make a real difference to everyday life.