Question to the Department for Transport:

To ask the Secretary of State for Transport, if she will make an assessment of the potential merits of reducing the bus fare cap to £2.

The Government has made no assessment of reducing the bus fare cap to £2.

The Government is committed to ensuring bus travel remains affordable, and stepped in to prevent a cliff-edge return to commercial fares by investing over £150 million to introduce a £3 cap on single bus fares in England outside London from 1 January 2025 to 31 December 2025, replacing the £2 cap.

Under the plans of the previous administration, the £2 cap on bus fares had been due to expire on 31 December 2024, and prior to the Autumn 2024 Budget, there was no further funding available to maintain a cap on bus fares beyond this point.  Maintaining the cap at £2 for the entirety of 2025 would have cost an estimated £444 million. The £3 cap represents a significant saving for taxpayers whilst ensuring bus services remain affordable.

The Government reaffirmed its commitment to investing in bus services in the Spending Review by confirming additional funding to extend the £3 cap by over a year until March 2027 as part of dedicated funding to maintain and improve bus services long-term.