Will Andy Burnham’s £2 bus fares make a difference to the cost of living?

Andy Burnham has announced a £2 cap on single bus fares in England from January 2027 as his latest measure to support people struggling with the cost of living. But experts have warned that the prime minister’s interventions must not stop there.

Keir Starmer‘s Labour had previously committed to capping single bus fares at £3 until March 2027. The new policy reduces that to £2 and extends it until the end of 2027.

In 2023, the Conservatives introduced a £2 bus fare under Boris Johnson, and Starmer’s Labour raised it to £3 in January 2025 with the former prime minister blaming the “the harsh light of fiscal reality”.

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Accused by reporters of “bringing back” a Conservative policy, Burnham pointed out that it was “actually my policy originally” and that he had “worked with Boris to take it national”.

Burnham introduced £2 bus fares in Greater Manchester in September 2022 and maintained the cap on his much-vaunted Bee Network.

The reduction in the bus fares back to £2 will cost the country £454 million, including money for the devolved governments to bring the policy to their local areas.

Chancellor John Healey said the policy was funded through “savings made elsewhere, so there’s no burden to British taxpayers”. 

That will come from reprioritising money previously allocated to international climate finance projects, with funding switched to loans rather than grants. 

The previous £2 fare cap was credited by the government with helping generate an estimated 30 million extra bus journeys in just 10 months. 

“When you’re taking the bus several times a day, every pound adds up,” Conor O’Shea, head of campaigns at Economic Change Unit which leads the Cost of Living Action coalition, told the Big Issue.

The campaign, a coalition of 41 grassroots organisations working on issues including tax, energy and social security, points to polling suggesting around 40% of people have £25 or less left each week after paying for essential bills. 

“When your margin is that slim, people don’t feel like they have any breathing room at all,” O’Shea added. “People have been feeling this pressure for a really long time.”

Campaign for Better Transport argued that lower fares will help ensure “mobility is not determined by a family’s circumstances”, making it easier for people to access work, education and other opportunities. 

Although she welcomed the fare cap, director of policy and research Silviya Barrett said “too many people still lack access to a bus service that is frequent, reliable and practical to use”. This limits access to jobs, training and education. 

The move builds on Greater Manchester’s Bee Network, where single bus fares have been capped at £2 since 2022 after Burnham brought buses under local control through franchising. The government has also said it will support six more mayoral authorities to introduce franchised bus networks.

Children living in temporary accommodation also get free school travel on Greater Manchester’s Bee Network buses. Burnham has not confirmed whether this will be expanded nationally.

Campaign for Better Transport estimates an additional £300 million a year could provide every community with a decent level of bus service.

Councillor Liam Robinson, chair of the Local Government Association’s Inclusive Growth Committee, said: “This is a positive measure that will help ease the cost of living and mean people can travel more affordably in their area. 

 “Alongside the new devolved powers over buses, government must continue to work with councils and transport authorities to develop a longer-term funding model to put local bus networks on a sustainable financial footing.”

For the Cost of Living Action campaign, the fare cap should be seen as one part of a broader cost of living strategy rather than a solution on its own.

“We can only properly address the cost of living crisis through addressing where extra funds come from,” O’Shea said.

The group argues Burnham’s government should pair these short-term measures with longer-term reforms. 

O’Shea said options such as extending the energy profits levy, introducing a wealth tax (something Burnham has not ruled out) and increasing taxes on large technology companies could help fund a government that wants to define itself by tackling the cost of living.

“Housing is most people’s biggest outgoing,” he said. “A serious programme of social housebuilding would be vital. Looking at energy and water, where people are paying more while companies continue to make profits, is another area where government could act.” 

Burnham has suggested further cost of living measures could follow as part of a longer-term programme in government.

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