How the £2 bus fare cap could save some commuters £500 a year

He said the bus fare cap is “a big measure for someone who can’t drive”, but fixing train fares “will help a lot of people”.

“Working in London, I expect the cost of the train to go down because the commute is so expensive at the moment,” he said.

The new cap on bus fares outside London will come into effect from 1 January 2027.

The scheme is expected to cost more than £500m and Burnham said it would be paid for by “repurposing” government funds.

But Shadow Chancellor Mel Stride said the Government had not revealed exactly where the money would come from.

In the announcement, the government said £454 million would be redirected from the Department of Energy Security and Net Zero (DESN). DESN said this will be used in addition to funds allocated for buses by the Department of Transport.

By January 2025, bus fares across England will rise to £3 under Sir Keir Starmer’s Labor government, although Liverpool and Manchester are examples of city regions where fares are kept at £2.

He said rural areas were still suffering from fewer bus routes and services despite the cuts in the campaign for better transport, saying they had been hit harder by council cuts than urban areas over the past decade.

Additional reporting by Adam Clarkson.