Prime Minister Keir Starmer announced yesterday (October 28) that the cap will be increasing from £2 to £3 in the upcoming budget.
The increased cap will be in effect until the end of 2025, allowing for savings of up to 80 per cent on certain routes.
Mr Burnham stated: “On January 5, 2025, we will implement a new simpler fare structure based on a £2 single fare and introduce a contactless payment system similar to London’s on March 23, 2025, with daily and weekly caps to limit travel expenses on buses and trams.”
He emphasized: “Our goal has always been to create a low-fare, high-usage system akin to London’s, which has boosted growth and productivity. This will continue to be the mission of the Bee Network.”
However, Mr Burnham mentioned that freezing the £2 bus fare cap is subject to a review in mid-2025.
“We anticipate that the steps we are taking will maintain the rise in usage seen since the introduction of the initial £2 cap in September 2022 and the launch of the Bee Network in September 2023. Increased usage will support the sustainability of the low-fare structure.
“However, it will only be by mid-2025, after completing Phase 1 of the Bee Network and assessing government funding levels, that we can evaluate the financial outlook for the new system.”
Outside Greater Manchester, under previous plans, funding for the current bus fare cap was set to end in 2024, potentially leading to significant fare hikes on routes like Leeds to Scarborough unless government intervention occurred.
Transport Secretary Louise Haigh remarked: “Buses are crucial for economic opportunity nationwide.
“We understand the importance of reliable, affordable bus services for keeping Britain moving. That’s why the government will maintain the fare cap at £3 for an additional year and allocate over £1 billion to enhance bus services.
“This will prevent sudden price increases and ensure affordable fares across the country, improving access to opportunities, especially in towns and rural areas, while delivering value for taxpayers.
“Our bus revolution will empower every community to control their services, end service disparities, and move on from four decades of deregulation failures.”