Prime Minister Andy Burnham is preparing to announce a nationwide £2 cap on bus fares, a move aimed at addressing the escalating cost of living crisis. This policy mirrors a similar cap he implemented in Greater Manchester in 2022 when he served as the region's mayor.
The announcement regarding the potential policy could come as early as Wednesday, following Burnham's campaign promises during the Makerfield by-election in June. The government previously introduced an England-wide £2 bus fare cap under Conservative leadership to encourage public transport use following a decline in ridership during the COVID-19 pandemic. However, Labour later increased this cap to £3, effective from January 2025, a decision made during the autumn budget in 2024.
Burnham has previously advocated for lower public transport costs, stating his desire to make it as affordable as possible. He has already implemented free bus travel for individuals aged 16 to 18 and removed the 9:30 am restriction for older and disabled people's bus passes in Greater Manchester. He has expressed a commitment to maintaining the £2 capped bus fare for as long as feasible, highlighting the role of low-cost or free public transport in supporting employment and community connectivity.
The proposed nationwide cap is expected to be implemented starting in January of the following year. This initiative follows another measure announced by the Prime Minister: the removal of VAT from electricity bills to provide relief to households facing financial pressures.
Burnham stated that these measures are intended to offer Britons some financial 'breathing space.' The cost of removing VAT from electricity bills, estimated at £850 million, is reportedly to be funded by the cancellation of Sir Keir Starmer's digital ID scheme. However, doubts have been raised regarding the funding for the digital ID scheme, with its architect, Darren Jones, who was dismissed by Burnham, warning that no funds had been earmarked for it.