The £3 bus fare cap may be eliminated after December 2025, as hinted by the transport secretary.
Sir Keir Starmer recently affirmed that the current £2 cap, effective in England since January 1, 2023, will increase to £3 at the beginning of next year.
The government has stated that the £3 cap will remain until December 2025.
However, during an interview on Sunday Morning with Trevor Phillips, Transport Secretary Louise Haigh implied that the administration is contemplating the removal of the cap beyond that timeframe to investigate alternative funding options.
She mentioned: “We have intervened with financing to maintain it at £3 until December 31 next year. During this time, we will seek to develop more focused strategies.”
When pressed further on whether the solitary £3 cap would be discontinued after December 2025, allowing for other types of fare relief, she replied: “That is what we are evaluating at the moment as we navigate through this year, while the £3 cap remains in effect – because our assessment indicated that the prior cap did not provide good value for money.”
This follows Ms Haigh’s confirmation that HS2 will not extend to Crewe.
The northern phase of HS2, intended to connect Birmingham to Manchester, was cancelled by former Prime Minister Rishi Sunak during last year’s Conservative Party conference.
There were speculations that Labour might construct a lighter version of HS2 connecting Birmingham and Crewe.
However, Ms Haigh stated that while HS2 will be developed from Birmingham to Euston, the government is “not reviving the HS2 plans.”
“HS2 Limited will not receive any additional work beyond what has been commissioned to Euston,” she added.
Last month, the Prime Minister validated that the £2 bus fare cap would escalate to £3 – labeled the “bus tax” by detractors – claiming that the prior administration had failed to provision for continued funding beyond 2024.
He stated that although the cap would rise to £3, it will remain at that price until the conclusion of 2025 “due to its significance.”
This cap adjustment has faced disapproval from some Labour members, with Greater Manchester’s mayor Andy Burnham choosing to sustain the £2 cap throughout 2025, even as the maximum fare across England increases to £3.
The region’s mayor explained that he could maintain single fares at £2 due to actions taken to regulate the system and return buses to public ownership since last year.
He also announced plans to implement a contactless payment system, incorporating daily and weekly price caps, as Greater Manchester transitions toward a London-style public transport pricing system.
Through devolution, local authorities and metro mayors have the ability to finance their schemes to keep fares affordable, as is exemplified in Greater Manchester, London, and West Yorkshire.
