Millions of bus passengers in England will see a change to fare limits from the start of 2027, when the current £3 single journey cap is reduced to £2 on participating services. The Government says the lower cap is intended to reduce travel costs and support communities where bus fares can be high. The move has also prompted questions about whether cheaper bus travel can encourage people to use buses instead of private vehicles.
Government Points to Previous Evidence on Lower Fares and Car Use
Transport minister Simon Lightwood has shared an update on the expected impact of the fare reduction, following a parliamentary question from Labour MP Callum Anderson about the relationship between lower bus fares and car usage. According to Simon Lightwood, evidence from an evaluation of the first 10 months of the £2 bus fare cap, which ran from January 2023 to December 2024, showed that lower fares encouraged some people to switch to bus travel from other forms of transport.
The evaluation included four surveys. Mr Lightwood said that between 29 per cent and 38 per cent of respondents who reported making additional bus journeys said they would have used another mode of transport without the fare cap.
Among those respondents, cars and vans were the most commonly reported alternative. According to the minister’s written response, between 21 per cent and 31 per cent said they would otherwise have travelled by car or van as a driver, while between 15 per cent and 18 per cent said they would have travelled as a passenger. The original £2 cap was introduced in January 2023 as part of efforts to help households manage travel costs and encourage greater use of bus services. The limit was later increased to £3 from January 2025.
Millions Expected to Benefit From Return to £2 Fare Limit
The Government announced the return to the £2 cap in July 2026, saying millions of passengers would benefit from the change. The policy will apply to participating bus services in England. Ministers said some of the most expensive routes could otherwise have single fares above £10 without the cap. The Government also highlighted rural and coastal communities, where passengers can face higher fares and fewer transport connections.
According to the Government announcement, the reduced fare limit is designed to help people reach work, education and other opportunities while reducing pressure from the cost of living. Prime Minister Andy Burnham said lower fares would help people get where they need to go and provide more financial room for households. He added that the policy was part of a wider aim to create more connected communities and improve access to opportunities.
The fare cap change will take effect from the beginning of 2027, returning the maximum single bus fare on eligible services to the level introduced when the scheme first began. The Government’s latest comments focus on previous evidence from the £2 cap period and the potential benefits for passengers facing higher transport costs.
