Prime Minister Andy Burnham has announced that bus fares across England will be capped at £2, reversing an increase put in place by Keir Starmer and Rachel Reeves in 2024. The cap, which will remain in place through 2027, was previously in effect between January 2023 and December 2024 before being lifted over affordability concerns.

Funding and Cost Implications

The scheme, which will apply across all of England except London, is expected to cost more than £500 million. Around £400 million will be sourced by switching investment in international climate finance to loans, with the remaining funds coming from savings in the Department for Energy Security and Net Zero and about £50 million from existing Department for Transport bus funding.

Transport Secretary Heidi Alexander confirmed the policy is fully funded, stating that there is £454 million of reprioritized money, and described the change as “about giving people a little bit of breathing space and help with the cost of living.” Alexander told BBC Breakfast that the move “is a signal of intent and shows you the direction of travel of the government under Andy Burnham.”

Public Transport and Cost of Living

“Good, affordable transport links are an essential. No one should be priced out of those and left behind,” Burnham said on Wednesday. “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.”

The bus fare cap will allow devolved governments to take similar action, with funding allocated as such. Some metro mayors, including Burnham, decided to fund an extension of the lower limit in their areas even after the national cap was lifted in 2024.

Burnham’s Other Policy Announcements

During a visit to Bath, Burnham also indicated that he would review the early prisoner release policy before its implementation. Hundreds of offenders will start being released early under the new Sentencing Act from September. Unlike the emergency measures in the early months of the Labour government, the new law includes no exemptions for prisoners convicted of serious crimes, domestic abuse, or terrorism.

“All I can say is I will review the whole of this policy,” Burnham said. “Nobody can deny the pressure on prison places. We did not invest in the prison estate when we should as a country, going back a decade or so ago, when it was clear that there was going to be pressure. That has created an unacceptable situation now.”

Burnham assured that he would look into every aspect of the policy with the justice secretary before it proceeds. “I can’t say that I can change the policy completely, but I will look at it in detail before we go further forward,” he added.