£2 Bus Fare Cap: Andy Burnham Government Confirms Two Improvements for Car and Bus Passengers
Labour Party Prime Minister Andy Burnham will make two reforms that will leave drivers and bus customers £102 better off. The Makerfield MP has announced a new bus ticket cap from January 2027 and a VAT cut on energy costs from October 2026.
VAT Cut Could Save Drivers £65
The VAT drop could see drivers gain by as much as £65, according to Carwow. “That may not sound like a lot, but over a year it can add up. “Charging a 100kWh EV from empty to full once a week might save roughly £65 a year, while households with more than one electric car or drivers who do a lot of miles could save considerably more.”
£2 Bus Fare Cap From January 2027
On top of the £65 saving, families will also save £37 from a new bus fare maximum. The average number of bus passenger rides per head in England outside London was 37 in the year ending March 2025, up 3% compared with the year ending March 2024.
The shake-up to bus tickets will see the £3 cap cut to £2 meaning riders stand to save £37. Commenting, TSSA General Secretary Maryam Eslamdoust said: “This is a step in the right direction from Andy Burnham because travel on public transport has got to be affordable for the public.
Transport and Cost of Living Measures
“Our union hopes and expects this is just the start of measures to tackle the cost-of-living crisis which is a blight on so many people in our country.
“We want to see an overall strategic plan from the government which is about transport being run for the people, not for profit.” That would show Andy Burnham is serious about moving Britain away from the agenda of the 1980s.
“Not only will it help to strengthen local, regional and national economies, deliver for passengers and help establish a fairer and more affluent country.”