ANDY Burnham has announced a cap on single bus tickets at £2 – but experts warn it’s another “sticking plaster without addressing the longer term causes” in the UK economy and that “longer term reform” is needed.
Millions of people will save a third on bus travel as Prime Minister Andy Burnham announces a cap on single bus tickets at £2 during his first week in office.
To help with the cost of living and give people the breathing space they need, passengers will benefit from cheaper fares from 1 January 2027 for the rest of the year– with maximum fares slashed by a third.
The last £2 fare cap saw an estimated 30 million more journeys taken by bus in just 10 months, the government claims.
Backed by £400 million extra funding, the cap on fares outside of London will help millions of people across the country access affordable bus travel more easily, breaking down barriers to travel for people struggling with the cost of living, opening up opportunities and boosting local economies, it adds.
This comes as the Government announced a tax cut to remove VAT from domestic electricity bills from October 1 in time to impact the next Ofgem price cap.
And inflation rose by 2.6% in the 12 months to June 2026, down from 2.8% the previous month, it has been announced today.
Essential
Prime Minister Andy Burnham said: “Good, affordable transport links are an essential. No one should be priced out of those and left behind. But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.
“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living. As I said on my first day in office – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives.”
Michelle Lawson, Director at Fareham-based Lawson Financial, suggested the money would be better spent improving the UK’s roads.
She added: “Of all the problems this country has right now, capping bus fares shouldn’t be a priority. Public transport is dire, dirty and unreliable. It can be a lifeline for the elderly, most who have free or subsidised bus passes, and those in rural areas. Towns and cities struggle due to excessive traffic.
“Journey times on a bus can be so slow and many people still like the flexibility and reliability of driving. Andy needs to revisit his list and look at the state of the nation’s roads and this would have been a more effective start point where all would benefit.”
Riz Malik, Independent Financial Adviser at Southend-on-Sea-based R3 Wealth, said it shouldn’t be in Burnham’s top priorities.
He added: “If it gets the labour force more mobile I’m all for it. However, on the list of things this country needs urgently, I don’t think it makes the top 40.”
Sticking plaster
Graham Nicoll, Financial Planner, Chartered FCSI at NCL Wealth Partners, said the cap should help stimulate the UK economy.
He added: “A targeted bus fare cap is easier to justify economically than broad-based subsidies such as energy bill support. If lower fares encourage more people to travel, spend in local shops, visit leisure venues and access employment, part of the cost can be recovered through stronger economic activity, higher tax receipts and increased fare revenue.
“The previous scheme’s increase in passenger numbers suggests there is evidence that lower prices can stimulate demand. Outside London, bus travel can be expensive, particularly in rural areas where people have fewer alternatives. Making public transport more affordable has the potential to improve access to work, education and local services. For individuals, buses can be economical, for families, taxis are generally cheaper and take you door to door.”
Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, disagreed that it will help the economy.
He added: “It’s absolutely necessary for the government to tackle the cost of living but it’s pointless to keep applying sticking plasters without addressing the longer term causes. Without that longer term reform, it’s just adding to the national debt and kicking the can down the road.”
Debbie Porter, Managing Director at Bakewell-based Destination Digital Marketing, praised Burnham’s move.
She added: “A £2 fare cap is a great idea. Mobilises the population to help them get around, and plays into achieving a net zero target at the same time. In rural communities, we now just need some actual bus routes to avail ourselves of this offer.
“We have a new ‘No 10 in the North’, but a perspective on the UK population taken from Manchester is still city-centric. So we now need politicians to understand how the rural economy holds itself together in market towns and villages. There are 47 million people living outside of metropolitan and city areas. Paying some political and policy attention to this part of the economy is the next step now that Andy Burnham has made the move to shine a light on the North.”
Photo by Diana Polekhina on Unsplash.
