Bus fares will be capped at £3 for an additional year.
Currently, all fares are £2 – and that cap is due to expire at the end of 2024.
Prime Minister Keir Starmer has confirmed today that the Budget will announce from January 1, fares will rise – but only to £3.
The cap is being funded by £151 million from the Government until the end of 2025.
The cap means no bus fare will exceed £3, and routes where fares are less than £3 will only be allowed to increase by inflation in the normal way.
It comes as the Department for Transport confirmed an additional £925 million for the 2025 to 2026 financial year to improve bus services across the country, bringing total bus investment at the Budget to over £1 billion.
A Stagecoach spokesman said: “We acknowledge the Government’s announcement of a new £3 bus fare cap and welcome the clarity it provides.
“We look forward to working with the Government to understand the details of the new scheme in the coming days and weeks.
“Our goal remains to provide reliable and affordable transport options that benefit our communities.”
