Source · Select Committees · Transport Committee
Recommendation 24
24
Deferred
Absence of clear national strategy for bus fares in England
Conclusion
Bus fares in England have risen faster than inflation and more steeply than other transport modes. While the fare cap has been broadly welcomed as a way of reining in unaffordable fares, it is a short-term measure, not a substitute for long-term policy. There is no clear national strategy guiding what fares are intended to achieve: promoting modal shift, improving affordability, increasing ridership, supporting network viability, or delivering wider social and economic goals. In contrast, Ireland has introduced a national fares strategy focused on consistency, equity, and simplicity. England could benefit from a similarly structured approach. (Conclusion, Paragraph 91) 50
Government Response Summary
The government notes that LTAs can use existing funding for fare initiatives and has extended the national bus fare cap until March 2027. It commits to considering options for the cap's eventual end and will bring stakeholders together to explore future models for fare support and coherent fare structures.
Government Response
Deferred
HM Government
Deferred
Most bus fares are set commercially by operators, except where single fares are capped through the National Bus Fare Cap (NBFC), or where fares are set through franchising schemes. The Government’s overarching aim of bus reform is to improve services and grow usage, and our focus has been on empowering LTAs to improve services for their communities. Bus fares play an important role in this, supporting the Government’s mission to break down barriers to opportunity. Local authorities can already use the LA Bus Grant funding provided by the Government to enhance and support their bus services and deliver new fares initiatives specific to their local area. As the Committee recognises in Recommendation 6, LTAs should consider using grant or fare box funding to enhance existing local bus services. There is however a trade-off between higher fares that support a wider network of services, and lower fares that increase usage. In addition, different local authorities may require different fare strategies to reflect the local area, for example the need for multi-operator or multi-modal fares in more urban markets. We have extended the £3 NBFC to the end of March 2027 to avoid a sudden increase in single fares in England outside London and maintain affordability for passengers. The fare cap has provided valuable lessons of the benefits of simplifying fare structures, giving passengers greater clarity and confidence about what they will pay. To support longer-term strategic thinking, we will consider options for the eventual end of NBFC and how the Department can best support LTAs and bus operators to enable fare reform and maintain affordability in the long-term. We will bring stakeholders together to explore future models for fare support and consider how national and local funding can work together to deliver coherent, transparent, and effective fare structures that align with broader transport objectives.