£3 bus fare cap could be scrapped, hints transport secretary

The government has indicated the £3 bus fare cap in place until next year may be scrapped beyond that point.

Bus fares have been capped at £2 on more than 4,600 routes in England since 1 January 2023, but the government has said that from next year the cap will rise to £3.

Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Louise Haugh indicated that beyond December 2025, the £3 cap may be abolished.

Asked whether the government intended to keep the £3 cap beyond next year, Ms Haigh, she said: "So the plans that we inherited would have ended the cap completely on the 31 December.

"We've stepped in with funding to protect it at £3 until the 31 December next year. And in that period, we'll look to establish more targeted approaches."

Last month Sir Keir Starmer confirmed the £2 bus fare cap would rise to £3 - something that has been dubbed the "bus tax" by critics.

He said the previous government only funded the current £2 limit to the end of 2024 "and therefore that is the end of the funding in relation to a £2 capped fare".

He said that although the cap would increase to £3, it would stay at that price until the end of 2025 "because I know how important it is".

Ms Haigh said the government wanted to look at "more targeted ways" to keep prices down for bus users, including measures that target young people.

Pressed again on whether that meant the single £3 cap would not be in place after December 2025, but that other bus reliefs could be put in place, she replied: "That's what we're considering at the moment as we as we go through this year, as we have that time whilst the £3 cap is in place - because the evaluation that we had showed, it hadn't represented good value for money, the previous cap."

It comes after Ms Haigh announced £1bn funding to support and improve bus services across the country.

Approximately £712m will be given to local authorities to improve services, alongside a further £243m for bus operators.