BRITAIN‘s new Prime Minister, Andy Burnham, has announced a nationwide cap of £2 (equivalent to ₦3,673.22 at today’s exchange rate) on single bus fares across England, describing the subsidy measure as part of his government’s drive to reduce the financial burden on millions of households battling the rising cost of living.
The subsidy is expected to take effect from January 1, 2027, and will remain in place until the end of the year.
Under the new arrangement, the maximum fare for a single bus journey in most parts of England will fall from the current £3 (equivalent to ₦5,509.83) to £2, representing a reduction of about one-third.
The fare cap will apply across England outside areas that already operate lower fare limits, such as London and Greater Manchester.
Announcing the policy, Burnham said affordable public transport is essential for economic opportunity and social inclusion, insisting that no one should be prevented from accessing jobs, education or healthcare because transport costs are too high.
“Good, affordable transport links are an essential. No one should be priced out of those and left behind,” the Prime Minister said, adding that lower fares would give families “breathing space” as they continue to deal with high living costs.
The British government estimates that “millions of passengers” will benefit from the fare reduction.
According to officials, the subsidy programme will cost ‘more than £500 million, with funding coming largely from reallocating money within existing government budgets rather than introducing new taxes.
Around £454 million has already been identified to support the scheme, while the remaining funds will come from transport budgets already earmarked for bus services.
Government officials said approximately £400 million of the subsidy would be generated by restructuring parts of Britain’s international climate finance programme, while additional savings would come from the Department for Energy Security and Net Zero.
Chancellor John Healey maintained that the policy would not place any extra burden on taxpayers because it would be financed through savings made elsewhere in government spending.
The announcement comes just a day after Burnham’s administration unveiled another cost-of-living measure by scrapping Value Added Tax (VAT) on domestic electricity bills from October, a move expected to save the average household about £45 annually.
Together, the electricity tax cut and cheaper bus fares form part of the new government’s promise to deliver immediate relief to households facing financial pressure.
However, the transport initiative has attracted criticism from opposition politicians, who questioned whether the government has clearly identified long-term funding sources for the programme.
Conservative politicians argued that while measures to reduce living costs are welcome, ministers must provide more detailed explanations of how the new spending commitments will be financed without increasing public debt.
Government spokespersons rejected the criticism, insisting that both the bus fare cap and the electricity tax cut are fully funded through spending reprioritisation and savings within existing government programmes.
Officials said further details on the financing arrangements would be presented during the country’s next national budget.
The latest measures signal Burnham’s intention to make tackling the cost-of-living crisis one of the defining priorities of his new administration, with the Prime Minister promising additional policies aimed at providing quick and tangible relief for lower-income families in the months ahead.
