This scheme has now been extended until 2025. You can read about this extension here
Government to provide up to £60 million from January to March next year to help bus operators to cap single adult fares at £2 per journey.
Assuming that the new government don't backtrack on the scheme, millions across England will save money through a new £2 cap on single bus journeys from January to March 2023, backed by up to £60 million to ensure affordable transport across the country.
The (previous) Transport Secretary announced the government would provide up to £60 million from January to March next year to help bus operators to cap single adult fares at £2 per journey.
The move will help passengers with travel costs for work, education, shopping and medical treatments over the winter months while facing pressures from the rising cost of living.
Bus fares vary across different parts of the country and between bus operators and can even reach almost £6 for a single journey in rural areas. The new cap means passengers in those areas could save more than £60 a month if they took four single trips a week.
The average single fare for a 3-mile journey is estimated at over £2.80, meaning that the new fare will save passengers almost 30% of the price every time they travel.
The funding to keep fares down follows the government’s announcement of £130 million last month to protect vital bus routes and services across the country, which those on lower incomes, particularly, rely on.
Previous Transport Secretary Grant Shapps said:
Buses are by far and away the most used form of public transport, so ensuring that almost all bus journeys are no more than £2 will assist passengers over the winter months and provide direct help to thousands of households across the country. This £60 million boost will mean everyone can affordably get to work, education, the shops and doctor’s appointments. We know people will be feeling the pressure of rising costs this winter, and so we have been working hard this summer to provide practical concrete help that will lower daily expenditure.
The new initiative follows the allocation of more than £2 billion to support bus services in England through the pandemic and a commitment to fund improved services, new bus priority measures and new electric or hydrogen buses as part of Bus Back Better, an ambitious national bus strategy, published last year.
During the pandemic bus, passenger numbers declined significantly, along with other public transport users, and figures show usage has not returned to pre-pandemic levels.
However, ensuring the public can access affordable bus fares will encourage more people to choose buses for local journeys, which will help to reduce carbon emissions as the country moves towards Net Zero targets. The scheme is estimated to take at least 2 million car journeys off the roads, cutting congestion and pollution for everyone.
Introducing the fare cap by January enables the government to work with operators and local authorities to implement a scheme that delivers tangible savings for passengers effectively. Operators representing around 90% of the bus market have expressed support for the scheme, and its hoped that all bus operators will participate.
The fare cap builds on many offers around the country in areas with high bus demand, including daily, weekly and monthly ticket options and promotional offers. The cap will not affect single fares that are already lower than £2.
A flat-rate bus pilot scheme, backed by £23.5 million of government funding, launched in Cornwall this January and has already seen an indicative 10% increase in passenger numbers. The ‘Any Ticket Any Bus’ scheme, running over four years, includes a £3 day ticket within towns or a £9 day ticket across all of Cornwall, which is valid across different bus operators.
It's thought that the scheme may be extended after March, depending on how popular the scheme is with potential passengers and if the new government wishes to continue funding the scheme.