Last updated: 5th November 2026
Bus fares are changing in England in 2027, with a lower limit planned for eligible single journeys on participating services. This guide explains what the new fare cap means in practice, who can use it, where it applies and how to check whether your journey is included.
The national bus fare cap is falling to £2
From 1st January 2027, the national bus fare cap in England will fall from £3 to £2. The new cap is planned to remain in place for the whole of 2027.
The Government announced the change on 22nd July 2026. It is intended to make everyday bus journeys more affordable, particularly longer journeys where single fares can be higher.
UNTIL 31ST DECEMBER 2026
£3
Current national cap
FROM 1ST JANUARY 2027
£2
New national cap for 2027
The maximum eligible single fare is reduced by £1. The actual saving depends on the fare you would otherwise have paid.
Start and end dates for the £2 fare cap
The new cap takes effect on 1st January 2027 and is scheduled to run until 31st December 2027.
The Department for Transport’s current guidance says the £3 national cap continues until 31st December 2026. A separate Government press release uses different wording about the end date, so see the transition section below for the discrepancy.
Participating bus services and route coverage
The £2 cap is intended for eligible single bus tickets on participating services in England outside London. It is not a blanket price limit on every bus route. The Government says the scheme will operate in all areas of England outside London, but operator participation and eligible services matter.
The Department for Transport’s published operator and route list is still the guidance for the existing £3 national bus fare cap. It is not a confirmed route-by-route list for the new £2 scheme. Do not assume that every route currently covered by the £3 cap will automatically be covered on the same terms in 2027.
CHECK THE ROUTE, NOT JUST THE COMPANY
A bus company may operate both participating and non-participating services. The operator name alone is not enough to confirm that your particular journey qualifies.
When the Department for Transport publishes the confirmed 2027 list, check the individual operator and route before relying on the capped fare. Until then, use the current official guidance as information about the £3 scheme only, not as a definitive 2027 route list.
Stagecoach, First Bus and Arriva route coverage
Passengers may search for the £2 fare on specific operators such as Stagecoach, First Bus and Arriva. The important point is that participation is determined by eligible services, not simply by the brand. The current GOV.UK route tables relate to the £3 scheme, so they should not be presented as confirmation of each company’s 2027 coverage. Check the operator’s own fare information and the updated Department for Transport list when it becomes available.
CHECK BEFORE YOU TRAVEL
Confirm that both the bus operator and the route are included in the scheme. Do not assume that a route covered by the current £3 cap is automatically confirmed for the 2027 £2 cap until the official information is updated.
Eligibility for the £2 bus fare cap
The Government’s announcement describes the cap as applying to eligible single tickets used by passengers on participating services. It is not presented as a benefit reserved for pensioners, people receiving benefits or people in employment. There is no separate passenger application or means test described in the announcement.
You do not receive the money as a payment. The saving comes through the price charged for an eligible single ticket. The route, operator and ticket type must still qualify.
London is excluded from the national fare cap
No. London is excluded from the national scheme. The £2 cap applies to England outside London. London has separate bus fares and ticket arrangements through Transport for London.
Separate bus fare schemes in Scotland, Wales and Northern Ireland
The England scheme does not apply in Scotland, Wales or Northern Ireland. However, it is important not to assume that Scotland has no £2 bus fares. Scotland already operates a separate £2 Bus Fare Cap on participating services in the Highlands and Islands and Strathclyde.
The Scottish Government announced that North East Scotland is due to join the Scottish scheme from April 2027. It has also committed to introducing legislation for a nationwide £2 cap, but has not yet published a complete national rollout timetable.
Scotland’s scheme has its own eligibility rules, participating operators and geographic boundaries. A route may qualify in one area but not another. Check Transport Scotland’s current operator and area information before travelling.
Wales and Northern Ireland have separate transport and fare arrangements. The England announcement does not introduce a matching £2 national cap there.
The £2 limit is a maximum, not a fixed fare
No. The £2 figure is a maximum eligible single fare, not a standard price for every journey.
If a participating service already charges £1.80 for a single ticket, for example, the fare can remain £1.80. The cap means an eligible single fare covered by the scheme should not exceed £2.
Passengers whose usual single fares are above £2 are the ones most likely to notice a reduction.
The cap applies to eligible single tickets, not all ticket types
The announcement specifically covers single bus tickets. It does not mean that return tickets, day tickets, weekly tickets or season tickets will all be capped at £2.
Operators can continue to set prices and conditions for other ticket products. Check the price of the ticket you normally buy rather than assuming that the single-fare cap applies to it.
Covered by the cap on a participating service.
Not automatically capped at £2.
Separate product and pricing rules apply.
Check the ticket product and each service. Do not assume a multi-leg journey is covered as one £2 fare.
Potential savings for bus passengers
The Government says millions of passengers could save up to a third on a single journey. The actual saving depends on the fare previously charged and whether the service and ticket qualify. Passengers whose normal single fare is already £2 or less may see no reduction.
OLD FARE
£2.50
Save 50p
OLD FARE
£3.00
Save £1.00
Examples assume the original single fare is above £2 and the journey qualifies. They are illustrations, not quoted fares for particular routes.
Existing local fares below £2
The £2 limit is a maximum, not a compulsory fare. If a local operator or transport authority already offers a qualifying single journey for less than £2, the national cap does not mean the fare has to increase to £2. Existing local discounts and lower fares may continue.
Some local transport authorities also support their own fare offers, multi-journey tickets or travel passes. These arrangements can have different prices, areas and conditions, so check the local scheme as well as the national cap.
How the £400 million funding supports the fare cap
The Government says the 2027 £2 fare cap is backed by £400 million of additional funding. The funding is intended to support the reduced fares paid by passengers on participating services. The announcement places the measure alongside wider support for local transport authorities and bus operators.
This funding is not a £400 million payment to passengers. The benefit for passengers is the lower price of an eligible single ticket. The Government says the wider aim is to make journeys more affordable and help people access work, education, healthcare and leisure.
Concessionary bus passes remain under separate rules
The £2 fare cap is separate from concessionary travel schemes. It does not replace free or discounted travel available through an eligible concessionary pass, and the announcement does not set out a change to those entitlements.
In England, concessionary travel rules are administered separately. If you already use a disabled person’s or older person’s bus pass, check the relevant local authority’s guidance for your entitlement and any changes to when you can travel. The £2 fare cap is mainly relevant when buying an eligible single ticket rather than using a pass for a free journey.
How to buy a ticket covered by the £2 cap
The Government has not announced a passenger application process or a separate claim for the saving. The measure is a fare cap applied to eligible tickets on participating services, rather than a cash payment or rebate paid to passengers.
However, the national announcement does not set out a single payment method for every operator. Whether you can buy the capped ticket using cash, contactless payment, an operator’s app or an online booking service will depend on the operator’s ticketing arrangements.
BEFORE YOU BOARD
Check that the route is included, choose an eligible single ticket and check the operator’s instructions for buying it. If the fare shown does not look right, ask the operator how the cap is being applied.
How the £3 cap transitions to the £2 cap
The Government’s written parliamentary statement says the £2 cap will operate from 1st January to 31st December 2027 and describes it as replacing the existing £3 cap. The current GOV.UK guidance also says the £3 cap continues until the end of 2026.
There is, however, conflicting wording in the Government’s 22nd July 2026 press release, which says the existing £3 cap is in place until the end of March 2027 while also saying the £2 cap starts in January. The Government’s published material therefore does not describe the transition consistently. We have not assumed that the two caps overlap or that the press release wording changes the formal start date. Check updated Department for Transport guidance before travelling during the transition period.
Says the £3 national cap continues until 31st December 2026.
Says the £2 cap begins on 1st January 2027.
Also refers to the £3 cap continuing until the end of March 2027. The Government needs to clarify this inconsistency.
Related bus and travel guides
Find out when eligible disabled bus pass holders will be able to travel free at any time of day.
Read about the rules affecting passenger behaviour on buses in England.
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