Source · Select Committees · Transport Committee
Recommendation 25
25
Deferred
Develop clear strategic priorities for bus fares with local transport authorities within 12 months.
Recommendation
The Department should develop, in partnership with local transport authorities and within 12 months, clear strategic priorities for what bus fares are aiming to achieve. It should articulate the strategic purpose of fare structures and guide consistent, transparent fare-setting at the local level. These priorities need to produce a coherent vision for how fare-box revenue and public funding will work together to produce the desired outcomes. (Recommendation, Paragraph 92)
Government Response Summary
The government defers the development of clear strategic priorities for bus fares, stating it will consider options for the eventual end of the National Bus Fare Cap and bring stakeholders together to explore future models for fare support and structure. It highlights existing local authority flexibility and the commercial setting of most fares.
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.