The future of the £3 bus fare cap in England hangs in the balance, with the Transport Secretary hinting at its potential scrapping after December 2025. The announcement follows the recent confirmation by Labour leader Sir Keir Starmer that the current £2 cap, introduced on 1 January 2023, will increase to £3 at the start of next year. While the government initially pledged to maintain the £3 cap until December 2025, Transport Secretary Louise Haigh suggested a shift in policy during a Sunday morning interview with Trevor Phillips.
Haigh indicated that the government is exploring alternative, more targeted funding methods for bus travel, questioning the cost-effectiveness of the current uniform cap. She stated: "We've stepped in with funding to protect it at £3 until 31 December next year. And in that period, we'll look to establish more targeted approaches⦠We've⦠found that the best approach is to target it at young people. So we want to look at ways⦠to better encourage people onto buses." Pressed on whether this implied the removal of the £3 cap after 2025, Haigh responded that this is "what we're considering." She cited an evaluation of the previous £2 cap, which deemed it poor value for money, as justification for the potential change.
This announcement follows other recent transport policy developments. Haigh confirmed that the government will not be extending HS2 beyond Birmingham to Crewe, effectively ending speculation about a potential "HS2-light" project between those cities. The northern leg of HS2 was previously scrapped by former Prime Minister Rishi Sunak. The government's commitment remains to the completion of the line from Birmingham to Euston, with Haigh explicitly stating that "HS2 Limited isn't getting any further work beyond what's been commissioned to Euston."
The impending increase in the bus fare cap to £3, described by critics as a "bus tax," has already proven controversial. The increase, according to the Prime Minister, stems from the previous government's failure to secure funding beyond 2024. Despite acknowledging the importance of affordable bus travel, the government's commitment to maintaining the £3 cap extends only to the end of 2025.
This decision has met with resistance, notably from Greater Manchester Mayor Andy Burnham, who intends to maintain the £2 cap throughout 2025, utilising devolved powers to subsidise fares. Burnham's strategy relies on his efforts to regulate the system and bring buses under public ownership. He also plans to introduce a contactless payment system with daily and weekly caps, mirroring the London transport model. This highlights the varying approaches possible under the devolution system, with local authorities in Greater Manchester, London, and West Yorkshire already demonstrating their capacity to implement alternative fare strategies. The coming months will determine the fate of the £3 cap and the extent to which the governmentâs proposed targeted approach can effectively replace it.