£3 fare cap extended to March 2027

Chancellor of the Exchequer, Rachel Reeves, has announced the £3 bus fare cap is to be extended to March 2027.

The current fare cap has been in place since January 2025, rising from the previous year’s £2 cap, introduced by the previous Government. It was due to expire in December this year.

Graham Vidler, Chief Executive of the Confederation of Passenger Transport, said: “While most passengers already pay less than the £3 cap, we recognise that low headline fares are an important part of the mix to enhance buses’ appeal, so the industry will again work closely with government to make this latest extension work.

“Also needed from the Spending Review today is long term investment in buses across the country to maintain connectivity, tackle congestion and improve us speeds, no matter where you live.”

Ben Plowden, Chief Executive of Campaign for Better Transport, said: “We are pleased that the Government has recognised the need to keep bus fares affordable. Taking the bus should never be a financial burden and the bus fare cap has benefitted millions of passengers since its introduction. Whilst this short-term scheme is very welcome, buses still need long-term revenue investment to underpin economic growth, break down regional barriers to opportunities and deliver the green growth the country needs.”

Claire Miles, CEO of Stagecoach, said: “We welcome today’s announcement on the extension and look forward to working with the Department for Transport to understand more details regarding the scheme. Affordable, accessible bus travel is vital for connecting people to jobs, education and essential services. This continued support will help our customers manage the cost of living while encouraging more people to choose more sustainable public transport options.

“Reliable, affordable transport is essential to our infrastructure and economy, and we’re proud to play our part in ensuring vital routes are served.”