Millions of bus passengers in England have been hit by an increase in single fares from £2 to £3.
The Government increased the bus fare cap on Wednesday for the first time since it was launched for most routes two years ago.
It will remain at £3 until the end of 2025.
The Department for Transport (DfT) said this will enable “potential savings of up to 80% on some routes”.
Fares that would be below £3 without the cap – such as many in urban areas – are permitted to rise by no more than inflation.
Silviya Barrett, from lobby group Campaign for Better Transport, said: “This is a significant increase that will be a costly start to 2025 for many people.
“Buses are our most used form of public transport so they need to be affordable.
“The fare cap has proved popular with passengers and helped boost ridership, so the Government must now look for a long-term replacement for the scheme from next year to avoid any further rises.”
After the increase in the cap was announced in Chancellor Rachel Reeves’ first Budget in October 2024, a Government source said maintaining an upper limit for bus fares was “hard fought for in the Budget process” and is largely aimed at helping passengers in rural areas.
Analysis commissioned by the DfT found keeping the cap at £2 was “not financially sustainable for the taxpayer” and “offered poor value for money”, the source added.
Local transport authorities have the power to keep the cap lower in their areas if they subsidise it themselves, or fund their own local schemes.
Greater Manchester Mayor Andy Burnham previously announced that single fares in the region will remain capped at £2 “for the whole of 2025 but subject to a mid-year review”.
In West Yorkshire, the cap will remain £2 until the end of March, after which it will rise to £2.50 for the remainder of the year.
The DfT provided examples of journey savings from the £3 cap compared with if the policy was abolished, which included between Leeds and Scarborough (£12), between Hull and York (£5.50) and between Newcastle and Middlesbrough (£5).
The department said it is providing more than £150 million to fund the cap in 2025.
This is in addition to £955 million announced in the Budget to support bus services until 2026.
Local transport minister Simon Lightwood said: “Buses are vital to help people get to work, the doctor, or see their friends and family – they boost growth, support communities, and provide opportunity.
“That’s why we’re stepping in to make sure fares are capped at the lowest point possible, saving people up to 80% on travel and ensuring that our buses continue to be an attractive, affordable way to get around.
“As we rebuild Britain with our Plan for Change, this £150 million investment is just the beginning.
“Our Bus Services Bill is currently passing through Parliament and will hand power back to local authorities to choose how they want to run their local buses – giving them greater control over fares, routes, and timetables.”
Alison Edwards, director of policy at bus and coach industry body the Confederation of Passenger Transport, said: “We understand passengers’ concerns about the national fare cap rising.
“However, a vast majority of the 11 million people who travel by bus every day will continue to pay well under £3 per journey.
“The fare cap only applies to single tickets. Commuters and regular passengers generally travel using season tickets, which are cheaper.
“And for the 26% of passengers who do travel on individual tickets, many fares for shorter journeys remain below £3.”
The DfT said buses have suffered “almost four decades of decline”, with thousands of services slashed.
It comes as local authorities face severe funding pressures.
Figures show the total distance travelled by buses in England in the year to the end of March was 1.01 billion miles.
That was down 11% from 1.14 billion miles in 2019/20, which was largely before the coronavirus crisis, and 22% down from 1.29 billion miles a decade earlier.
The Local Government Association, which represents councils, previously said “streamlining” bus funding into a “single, long-term, devolved pot” would give councils greater control and spending power over where buses go.
