Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment she has made of the potential merits of continuing the bus fare cap.
Delivering reliable and affordable public transport services is one of the government’s top priorities and we know how important this is for passengers and for local growth. The government is investing over £150 million to deliver a new £3 cap on single bus fares in England outside London from 1 January until 31 December 2025 to help millions access better opportunities and promote greater bus use by passengers.
If we had not taken action in the Budget, the bus fare cap would have ended and fares would have jumped back up to their previous levels on 31 December 2024. This would have meant some fares soared above £10 on the most expensive routes, as the last government had not funded the fare cap beyond the end of the year. Instead, we chose to fund an additional year of the fare cap but with the maximum price now set at £3. This does not mean, however, that all fares will rise to £3 as we will require operators to demonstrate that they have not raised fares any higher than inflation.
This government is committed to improving bus services across the country, which is why the Budget allocated more than £1 billion to local bus services. This will be used to expand services and improve reliability, which are currently massive obstacles for too many people.
Moving forward, the government is exploring more targeted options that deliver value for money to the taxpayer, to ensure affordable bus travel is always available for the groups who need it the most – such as young people.