The cap on bus fares in England will be raised to £3 in the next budget, Prime Minister Sir Keir Starmer has announced.
This 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 set to expire at the end of December.
Sir Keir said: “I know how important this is, particularly in rural communities where there is a heavy reliance on buses.”
The new £3 cap will last until the end of 2025.
Speculation has swirled in recent days that the Chancellor will announce in the Budget on Wednesday that the current cap will be removed.
This would have meant some passengers would have faced a steep rise in fares after two years of aid.
Around 3.4 million people in England use buses. The Passenger Transport Confederation said the £2 cap increase had saved travelers from being faced with a “cliff edge” at the end of this year.
But he said: “An increase to £3 will still present challenges for many passengers, particularly those who rely on buses as their main affordable transport option. »
Greenpeace said it was a “'difficult decision' that the government did not need to make.”
“This makes no political, economic or environmental sense,” said Paul Morozzo, head of Greenpeace's UK transport campaign.
He said buses provide “a critical lifeline for millions of people, especially those on low incomes.”
“A government that truly prioritized the needs of the poorest in society would rethink this decision at the first opportunity,” he said.
