From 1 January 2025 until the end of the year, the maximum a bus fare can set you back will be £1 more expensive than its current level, which expires on 31 December 2024.
This applies to the vast majority of bus fares, excluding trips in London, Greater Manchester and West Yorkshire, which already have a set limit.
In each area, there are a handful of routes where the limit does not apply.
The Government confirmed the fare is voluntary and some bus companies have opted against having a limit on what they can charge travellers.
Other circumstances when the price cap might not apply is on coach services, school buses and airport services.
Why Life Insurance Still Matters – Even During a Cost-of-Living Crisis
Sponsored by Post Office
Prime Minister Keir Starmer announced the increase during a speech in the West Midlands ahead of the Autumn Statement on 30 October.
The fares were frozen by the previous Conservative Government in 2022 to help people during the cost-of-living crisis, but only up until 31 December 2024.
Starmer said: “On the £2 bus fare, first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding in relation to a £2 capped fare.
“I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses.
“And that’s why I’m able to say to you this morning that, in the Budget, we will announce there will be a £3 cap on bus fares to the end of 2025, because I know how important it is.”
While the maximum amount you could be paying on the bus has gone up, there were fears that with no cap in place, prices would have shot up.
‘Significant increase will be costly to many’
Campaign for Better Transport wrote on X (formerly Twitter): “Pleased that Government has avoided fully scrapping the bus fare cap but this is a significant increase that will be costly to many.
“A full review is now needed of what other discount fares could replace the cap in the long term to keep fares low for years to come.”
However, David Sidebottom, director at the independent watchdog Transport Focus, felt the end of the speculation on the fare would be a relief for passengers.
Sidebottom said: “We know that bus passengers want simpler, better-value-for-money fares, and buses provide a lifeline for so many people up and down the country. Our research shows the fare cap is having a big impact in helping more people get around by bus.
“While no one likes a fare rise, the announcement of a new £3 cap on bus fares will provide welcome certainty for many people who are struggling and worried about the cost of travel.”
