Prime Minister Sir Keir Starmer has announced that the cap on bus fares in England will be increased to £3 in the upcoming budget.
This is in addition to the current £2 limit introduced by the previous Conservative government to help reduce the cost of living.
The existing cap is set to expire at the end of December.
Sir Keir said: “I do know how important this is, particularly in rural communities that rely heavily on buses.”
The new £3 cap will last until the end of 2025.
There has been speculation in recent days that the chancellor will announce the lifting of the current cap in Wednesday’s budget.
That means some passengers will face significant fare increases after receiving help for two years.
Around 3.4 million people use buses in England. The Passenger Transport Federation said raising the cap from £2 would avoid a “cliff edge” for travelers at the end of the year.
But it said: “A rise in fares to £3 will still cause challenges for many passengers, particularly those who rely on buses as their main mode of travel.”
Greenpeace said it was a “‘tough decision’ that the government does not need to make”.
“This makes no sense politically, economically or environmentally,” said Paul Morozzo, senior transport campaigner at Greenpeace UK.
He said buses were a “vital lifeline for millions of people, especially those on low incomes”.
“A government that truly prioritizes the needs of society’s poorest people would reconsider this decision at the earliest opportunity,” he said.
