£2 bus fare cap in Peterborough to continue into 2025 with new subsidy

The £2 bus fare cap, which is currently in place in Peterborough, will remain into 2025 following an extraordinary meeting of the Combined Authority Board on Friday (December 13).

The proposal was put forward by Mayor Dr Nik Johnson and follows the reinstatement by the government of a national fare cap at £3 from January 1, 2025.

Prior to October’s budget, the £2 fare cap was due to end on December 31, 2024.

Mayor Dr. Nik Johnson called the extraordinary meeting to explore how local funding could further support affordable journeys.

He said: “Government took an important step in supporting bus users by putting a £3 fare cap in place to the end of 2025. But as a Combined Authority, we also had the ability to act. Keeping fares as low as possible for our residents maintains our commitment to better buses, helping people get to places of work, education and leisure more affordably, and encouraging people to choose public transport.”

The £2 fare has been proposed to support the Combined Authority’s Bus Strategy by encouraging public transport use, increasing passenger numbers, and providing a cost-effective alternative to car travel.

The estimated cost to keep fares at £2 for three months is around £1 million, funded through the Combined Authority’s 2024/25 Bus Service Improvement Plan (BSIP) grant from Government. The grant is for bus service initiatives including keeping travel affordable and supporting bus services.

The Combined Authority will work now with bus operators to ensure the £2 fare cap remains in place.

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.