The new £3 cap, covering most bus journeys in England, will run until the end of 2025.
Fares that would be below £3 without the cap – such as many in urban areas – are only permitted to rise in line with inflation, which measures how prices change over time.
Buses are the most commonly-used form of public transport, external in Great Britain. But in recent years, thousands of services have been cut due to local councils’ funding coming under significant pressure.
Outside of London, bus mileage in the year ending March 2024 was about a quarter lower than in 2005.
There was speculation that the bus fare cap in England would be scrapped entirely at Chancellor Rachel Reeves’ first Autumn Budget.
Silviya Barrett, from lobby group Campaign for Better Transport, said that the policy had proven popular with passengers.
While the cap which was due to expire at the end of December was retained, she said that its increase to £3 was “significant”.
“The government must now look for a long-term replacement for the scheme from next year to avoid any further rises,” she said.
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