The £3 fare cap on bus journeys, which has helped limit transport costs for passengers across the UK, is set to be replaced with a more targeted approach next year. Transport Secretary Heidi Alexander confirmed that the universal cap, which had been scheduled to remain until the end of 2025, will instead be scaled back significantly.
This move comes after reports indicated that the universal cap, introduced by the Labour government, has not benefited the majority of bus journeys. With only one in six bus trips currently falling under the fare cap, many passengers may not see the same level of savings once the cap is withdrawn.
Campaigners are worried that some regions could face fare increases as high as £10 per journey if the targeted approach is implemented.
Government Focuses on Targeted Support for Local Areas
According to Alexander, the current fare cap applies exclusively to single bus journeys, benefiting only a small portion of passengers. She noted that many regular bus users opt for weekly or monthly passes, meaning they are unaffected by the fare cap.
Government insiders have suggested that local authorities and mayors may gain more control over how the fare cap is applied in their areas, with a focus on specific communities, including younger passengers or those in rural locations.
While the government has promised to maintain some form of fare support, the exact details of how the new approach will work remain unclear.
According to sources, the shift to a targeted fare cap will aim to make the funding more effective, ensuring that the most vulnerable passengers continue to receive assistance without imposing unnecessary costs on the wider population.
Potential Impact of Fare Hikes for Passengers
Campaigners have warned that the withdrawal of the £3 cap could lead to fare increases far beyond the current limit, particularly in regions where fares are already high. This could put additional financial strain on passengers, especially those in rural or underserved areas where transport options are limited.
Transport Secretary Alexander highlighted that the government had introduced the £3 cap last year as a temporary measure to prevent a significant fare hike, but she made it clear that a more targeted approach will be introduced next year.
While the cap may not be fully abolished, it is clear that the new approach will be a significant shift in how bus services are funded and how passengers are affected.
The government has allocated £150 million to support bus services as part of a broader £1 billion investment, though it remains to be seen how these funds will be distributed in the future.
