England will restore a £2 single bus fare cap in January

Single bus fares in England outside London will be capped at £2 throughout 2027, replacing the current £3 ceiling. The government says millions of passengers could save up to a third on a journey.

The policy responds to cost-of-living pressure and expensive access to work, education and healthcare. It should help longer-distance travellers most, particularly in rural and coastal communities where fares can be higher.

The cap is backed by £400 million in additional government funding. On eligible routes run by participating operators, passengers will pay no more than £2 for a single ticket from 1 January until 31 December 2027. London is excluded because its fares are regulated separately.

The return offers a clear reduction in travel costs and may make buses more attractive. However, it is temporary, applies only to eligible fares on participating services and does not fix unreliable or missing routes. Funding is partly by shifting some international climate support from grants to loans, a trade-off that has drawn criticism.