Burnham announces £2 bus fare cap - but how will it be funded?

Single bus fares across England will be capped at £2 from January, Prime Minister Andy Burnham has announced, after he pledged to to lead a "cost-of-living government" in his first Cabinet meeting. The nationwide cap is currently set at £3 until the end of March 2027, although some areas, including London and Greater Manchester, where Burnham set a £2 limit as mayor, have lower top rates for single tickets. Burnham said: “Good, affordable transport links are essential. No one should be priced out of those and left behind. “But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: A £2 cap on bus fares for millions across the country. “Lower fares will help people get to where they need to, giving them breathing space to help with the cost of living.” The measure is backed by £454 million of funding, including money to allow devolved governments to take similar action. Some £400 million of that funding will come from switching investment in international climate finance to loans, with the rest from savings in the Department for Energy Security and Net Zero budget. The total cost of the scheme is expected to be more than £500 million, with the rest coming from Department for Transport funding already allocated to buses. A £2 cap had been in place between January 2023 and December 2024, but the incoming Labour administration argued it was not affordable, although some metro mayors, including Burnham, decided to fund an extension of the lower limit in their areas. Broadcast on 22/07/2026 Stream Good Morning Britain live, every weekday from 6am on the ITVX 📲 http://daytimelink.itv.com/WatchGMBYT Subscribe now for more! http://bit.ly/1NbomQa Like, follow and subscribe to Good Morning Britain! The Good Morning Britain YouTube channel delivers you the news that you’re waking up to in the morning. From exclusive interviews with some of the biggest names in politics and showbiz to heartwarming human interest stories and unmissable watch again moments. Join Susanna Reid, Ed Balls, Kate Garraway, Richard Madeley, Charlotte Hawkins and Sean Fletcher every weekday on ITV from 6am until 9 every weekday! ITVX: http://daytimelink.itv.com/WatchGMBYT Website: http://bit.ly/1GsZuha YouTube: http://bit.ly/1Ecy0g1 Facebook: http://on.fb.me/1HEDRMb Twitter: http://bit.ly/1xdLqU3 http://www.itv.com #GMB