Great news for bus passengers in England! The government has just announced an extension of the £2 fare cap until the end of October.
This cap applies to over 130 bus operators outside of London. However, starting in November, the fare cap will increase to £2.50 for a duration of 12 months, after which prices will be reviewed.
This extension comes as a relief to many, as there were concerns that numerous bus services would be cut without the fare cap. The primary aim of this initiative is to alleviate the financial burden on passengers and encourage more people to utilize bus services.
Despite the extension, bus operators are still experiencing a decline in passenger numbers compared to pre-Covid levels. According to the Department for Transport, bus usage has only recovered to around 85 to 90%. The Confederation of Passenger Transport, the trade association for the UK’s bus and coach sector, appreciates the additional funding and believes it will provide greater confidence for operators and councils to promote and expand services.
However, Graham Vidler, the chief executive of the Confederation of Passenger Transport, warns that the funding and extension of the fare cap will not be sufficient to save every service across the country. The trade association has consistently highlighted the need for further funding to prevent up to 15% of services from being discontinued.
Transport expenses have become a significant portion of household budgets, especially with recent increases in fuel, food, and energy prices. Inflation is currently at 10.1%, meaning items are over 10% more expensive on average compared to a year ago.
Norman Baker from the Campaign for Better Transport urges the government to promote the bus fare cap to attract individuals who don’t typically use buses, which would help increase passenger numbers saying “The huge success of the scheme proves that by making public transport more affordable, more people will use it and revenue can be increased.”
The government estimates that extending the fare cap until the end of October and then subsidising fares at £2.50 until November 2024 will cost £200 million. Additionally, the Department for Transport will provide £300 million to councils and operators until 2025 to safeguard crucial routes for work, education, and medical appointments, as well as enhance infrastructure.
