Bus passengers to save hundreds as government prevents cliff-edge fare hike

Millions of people will continue to travel for less from today (1st January), thanks to over £150 million in Government funding to stop bus fares rising for passengers.

Under inherited plans, funding for the previous cap on bus fares had been due to expire at the end of 2024. But as part of the Government’s commitment to put more money in people’s pockets as part of the Plan for Change, it has stepped in to maintain a cap in 2025.

The funding will see single bus fares on routes included in the scheme capped at £3 across England until the end of 2025, which will support travel in rural communities and towns where there is a heavy reliance on buses. 

Passengers could save up to 80% on some routes, such as Leeds to Scarborough, where fares were set to soar to £15 without Government intervention to keep bus travel affordable for all.  

Fares between £2 and £3 that were previously capped at £2 will not all automatically rise to £3, with fares only allowed to increase by inflation in the normal way. Local authorities and Metro Mayors can also fund their own schemes to keep fares below £3.

The significant intervention comes on top of £955 million invested to improve bus service frequency and reliability across the country.

Local Transport Minister Simon Lightwood said: “Buses are vital to help people get to work, the doctor, or see their friends and family — they boost growth, support communities, and provide opportunity.

“That’s why we’re stepping in to make sure fares are capped at the lowest point possible, saving people up to 80% on travel and ensuring that our buses continue to be an attractive, affordable way to get around. 

“As we rebuild Britain with our Plan for Change, this £150 million investment is just the beginning. Our Bus Services Bill is currently passing through Parliament and will hand power back to local authorities to choose how they want to run their local buses — giving them greater control over fares, routes, and timetables."

The £150 million investment will prevent a price-hike for millions of passengers, keep fares affordable across the country, and improve access to opportunities, particularly in towns and rural areas, while offering value for the taxpayer. 

The Government is also currently progressing the Bus Services Bill through Parliament, which was introduced on 17 December 2024. It will put buses back at the heart of communities by allowing local authorities to establish their own bus companies and franchises. This will make it easier for them to own services, and shape routes to work better for local people. 

Buses remain the most used form of public transport across the country, but – after almost four decades of decline – thousands of vital services have been slashed, with passengers left frustrated at the lack of accountability.  

Since 2010, the number of miles driven by buses has plummeted by around 300 million. The transformative work the Government is doing aims to turn the tide by giving communities access to reliable and affordable services, and the opportunity to have a real say in building local transport networks that work for them.