Archive · 22 Jul 2026
Burnham caps England bus fares at £2
Prime Minister Andy Burnham has announced that single bus fares across England will be capped at £2 starting from January 2027.
This move aims to help people with the cost of living by making public transport more affordable.
The scheme will cost over £500 million and is funded by reallocating existing funds and switching some international climate grants from grants to loans.
London will not be included as it has its own transport system with lower fares.
The announcement follows the government's decision to scrap VAT on domestic electricity bills, which was funded by canceling a planned digital ID scheme.
While supporters welcome the move, critics argue it revives old-style spending and question its boldness and economic impact.
Single bus fares across England capped at £2 from January 2027.
Scheme costs over £500 million, funded by reallocating existing funds and switching climate grants to loans.
Reverses a fare increase introduced by the previous government in 2024.
London excluded as it has its own transport system with lower fares.
Follows the government's decision to scrap VAT on domestic electricity bills.
- Who
- Prime Minister Andy Burnham
- What
- Capping single bus fares at £2 across England
- When
- From January 1, 2027
- Where
- All of England except London
- Why
- To help with the cost of living and ensure affordable transport links
Government and Supporters
Opposition and Critics
Funding and Economic Impact
Government and Supporters
The government argues that the fare cap is funded by reallocating existing funds and switching climate grants to loans, ensuring no additional burden on taxpayers.
Opposition and Critics
Critics like Shadow Chancellor Mel Stride argue that the move revives 1970s-style spending and taxation, questioning the sustainability and economic wisdom of the policy.
Policy Boldness
Government and Supporters
Supporters, including TUC General Secretary Paul Nowak, welcome the cap as a necessary step to support households, though they advocate for additional measures like taxing bank profits.
Opposition and Critics
New Economics Foundation policy chief Alex Chapman views the cap as a reinstatement of an earlier scheme rather than a bold new initiative, describing its scale as modest.
- Policy Announcement Date
- Wednesday, 22nd
- Effective Date
- January 1, 2027
- Cost of Scheme
- Over £500 million
- Funding Sources
- Switching international climate grants to loans, Department for Energy Security and Net Zero savings, existing Department for Transport bus funding
- Current National Cap
- £3 until March 2027
- London Fares
- Flat £1.75
- VAT on Electricity Bills
- Scrapped the day before the announcement
- Funding for VAT Cut
- £800m from the planned digital ID scheme
Sources
Burnham caps bus fares at £2 across England in cost-of-living push
Burnham Caps Bus Fares at £2 Across England to Cut Costs
Burnham’s personal allowance U-turn explained: What the government is offering instead
Burnham Personal Allowance U-Turn: What's Replacing It?
