UK Prime Minister Andy Burnham has said bus fare cap in England will revert to £2 throughout 2027 starting from January 1.

Mr Burnham, who announced the policy on Wednesday, said the policy is necessary to ease out people’s cost of living and give them a breathing space.

“For too long people have said that cheaper transport is not an option. I do not accept that. I have done it before and I will do it again now: a £2 cap on bus fares for millions across the country,” the PM stated.

In January last year, the England-wide bus fare cap rose to £3 under the former PM Keir Starmer’s Labour government, even though fares were held at £2 in some citiy regions.

Mr Burnham, who said affordable transport links were an essential, added, “Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.”

The development came as citizens contend with higher living costs, especially after fuel costs spiked amid the ongoing U.S.-Iran war.

The new cap, which will take effect from January for fares on participating buses outside of London, is expected to cost more than £500 million, with funds largely coming from reallocated Department for Energy Security and Net Zero money.