Attempts to retain Peterborough's £2 bus fare cap until March 2025

Cambridgeshire and Peterborough’s Combined Authority Mayor Nik Johnson is pushing to retain the £2 cap on bus fares until March 2025.

Prior to October’s Budget, the £2 cap was due to expire at the end of this year but the this was then reinstated but with the cap rising to a maximum of £3 for bus journeys.

In explaining his motivations, Mayor Johnson said: “It was a huge relief to know that the national fare cap would continue through to the end of 2025 and the new rate is a good deal better than the nothing otherwise planned.

As the Transport Authority, we have an opportunity to build on government’s support and keep bus fares as low as possible for our resident passengers and that’s why I’ve asked my board colleagues to meet and discuss the best use of the funding we have available.”

"Keeping the £2 fare would support the Combined Authority’s Bus Strategy, which focuses on boosting passenger numbers, improving bus services, and encouraging public transport as an attractive, cost-effective alternative to driving.”

The estimated cost of subsidising fares at £2 for three months is around £1 million.

This would be funded through the Combined Authority’s 2024/25 Bus Service Improvement Plan grant. The grant is for initiatives such as keeping travel affordable and supporting bus services.

The proposal to retain the £2 cap will be presented to an extraordinary meeting of the Combined Authority Board on Friday (December 13).

Decisions about any extension to the cap beyond March 2025 will be made as part of the Combined Authority’s budget and medium-term financial plan-setting process in early 2025.