The new fare allows passengers to change onto another bus or tram for free within one hour of touching in at the start of their journey.

The Mayor of London, Sadiq Khan, said an estimated 30 million bus journeys currently costing £1.50 will now become free every year.

Khan said the new scheme will particularly benefit those on lower incomes who often rely on the network to get around. It will automatically apply to anyone who uses ‘pay as you go’ with Oyster or contactless payment cards, even if they pay a discounted fare.

Transport for London (TfL) is also working on delivering unlimited bus and tram transfers within one hour from 2018, something which is not currently possible due to limits with existing technology.

In addition, from 2018, passengers who travel on a tube or train between their two or more bus or tram journeys will also be eligible for the Hopper fare.

Khan said: “Today is a landmark day for transport in London, and I’m hugely proud that our new ‘Hopper’ fare will make bus travel cheaper for millions of Londoners travelling around our city. It wasn’t right that Londoners had to pay twice simply to change buses, and the ‘Hopper’ will make 30 million journeys free every year. It will make a particular difference to low income families – many of whom still spend a large proportion of their wages on essential travel costs.

“Alongside my commitment to freeze all TfL fares for the next four years, the new ‘Hopper’ fare is a key part of my plans to make London a more affordable place for everyone who lives and works here.”

Khan added that as part of the new Hopper fare and four-year price freeze on TfL services, the average household will save around £200.