Bus passengers in England will be able to keep travelling for £2 after the government extended funding by another £500m, easing fears about a further decline in local services.
The fare cap on most local buses, brought in as a temporary measure last year to boost patronage, will be extended until the end of October and then for another 13 months at £2.50 for a single journey, in a move that the Department for Transport said would support people with the cost of living and ensure stability in the sector.
Bus operators, who had warned that up to 15% of routes could be lost when existing funding was due to run out at the end of June, welcomed the news but said it would not be enough to save every service.
Covid recovery grants, a subsidy to address the continued shortfall in passenger numbers, were also set to expire next month. The fare cap scheme, which is supported by the biggest operators, will cost about £200m, while the government will also commit another £300m in funding for bus services until 2025.
The government said it would review the effectiveness of the fare cap, which cuts some fares in England outside London by more than 80%, at the end of 2024, when a general election is expected to take place.
The average single adult bus fare would otherwise be £2.80. Fares for adults in London are £1.75, while £2 caps have been launched in Greater Manchester, Liverpool and West Yorkshire under metro mayors.
The prime minister, Rishi Sunak, said: “By extending the £2 fare cap, we’re making sure bus travel remains accessible and affordable for everyone, while helping to ease cost of living pressures.
“Buses connect our communities and play a vital role in growing the economy; they transport people to work, take our kids to school and make sure patients can get to doctors’ appointments. That’s why we’re determined to protect local routes and encourage more people on to the bus, ensuring people can get around easily and in an affordable way.”
The transport secretary, Mark Harper, said the investment would help “continue to level up transport in all parts of the country, doing our bit to help halve inflation and grow the economy”.
The Confederation of Passenger Transport, representing bus operators, said the two-year funding settlement recognised the value of buses. Its chief executive, Graham Vidler, said: “It will enable bus operators and local authorities to plan, promote and grow services with greater confidence.
“However, the combination of the funding settlement and the £2 fare cap extension will not save every service in every part of the country. Operators and local authorities will now work together to study the detail of the government’s proposals and ensure that the funding is used to safeguard the best possible network for local passengers.”
The CPT has sounded repeated warnings over passengers’ concerns about increased travel costs or being cut off should funding mean services were withdrawn.
