The single bus fare cap in England will be raised to £3 in the upcoming Budget, Prime Minister Sir Keir Starmer has announced.
It is an increase on the current limit of £2 which was introduced under the previous Conservative government to help with the cost of living.
The existing cap was due to expire at the end of December.
Sir Keir said: “I do know how much this matters, particularly in rural communities where there is heavy reliance on buses.”
The new £3 cap, covering most bus journeys in England, will run until the end of 2025.
About 3.4 million people in England use buses. There had been speculation in recent days that the chancellor would announce in the Budget on Wednesday that the current cap would be scrapped.
This would have meant that some passengers faced a steep hike in fares following two years of help.
Single bus fares in London with Transport for London will, however, remain at £1.75 and those in Greater Manchester at £2.
They are excluded from the broader fare cap as their funding is structured differently.
The Confederation of Passenger Transport said that raising the cap from £2 has avoided travellers facing a “cliff edge” at the end of this year.
But it said: “An increase to £3 will still present challenges for many passengers, particularly those who rely on buses as their primary means of affordable travel.”
