Government extends £2 bus fare cap for second time
It's to help with the cost of living
The Government has extended the £2 bus fare cap for a second time, to ensure bus travel remains "accessible and affordable for everyone".
The Department for Transport (DfT) says the cap will remain for bus services outside London until October 31, after which it will increase to £2.50 until November 30 2024 before fares are reviewed.
Transport Secretary, Mark Harper, said the Government will invest £200 million to extend the cap and a further £300 million to support bus services until 2025 - £160 million for local transport authorities to improve fares, services and infrastructure, and £140 million for operators to protect essential services across England.
The extension comes as part of the Government's Help for Households initiative to support the public with the increased cost of living.
The funding takes the total Government investment for buses to more than £3.5 billion since March 2020, according to the DfT.
The department said the cap will particularly benefit people on lower incomes, "who take nearly three times as many bus trips" than those on higher incomes.
Mr Harper said: "Taking the bus is the most popular form of public transport and millions of people rely on these vital services every day.
"That's why we're investing half a billion pounds to help people save money amid cost-of-living pressures and continue to level up transport in all parts of the country, doing our bit to help halve inflation and grow the economy."
PM: 'We're determined to protect local routes'
Prime Minister, Rishi Sunak, hailed the "vital role" buses play and the importance of keeping them as affordable modes of transport.
"By extending the £2 fare cap, we're making sure bus travel remains accessible and affordable for everyone, while helping to ease cost-of-living pressures," he said.
"Buses connect our communities and play a vital role in growing the economy; they transport people to work, take our kids to school and make sure patients can get to doctors' appointments.
"That's why we're determined to protect local routes and encourage more people on to the bus, ensuring people can get around easily and in an affordable way."
The DfT said the cap has encouraged more people to use the bus.
It is understood operators such as Go-Ahead have carried more than 16 million passengers at £2 since the scheme began on January 1.
Bus operators continuing the fare cap have yet to be confirmed.
The cost of living crisis is affecting many:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.