Transport Secretary hinted the scheme could be scrapped elsewhere
Metro Mayor Steve Rotheram said he wanted to keep fares “as affordable as possible”
Talks are taking place over the future of a £2 bus fare cap across Merseyside amid concerns similar schemes could be scrapped elsewhere. In Chancellor Rachel Reeves’ first financial statement to the House of Commons last year, she confirmed the limit for a single bus trip would be increased to £3.
In response, almost £5m was poured into the Liverpool City Region’s transport budget in a bid to retain the £2 charge cap until September this year at least. Introduced in 2022, the £2 limit had been due to expire at the end of last year.
Metro Mayor Steve Rotheram confirmed the retention of the fee, admitting it hadn’t been an easy decision. Now, as the transport secretary refused to confirm the £3 cap would be retained after the government’s spending review is announced next month, Combined Authority (CA) officials have confirmed they are in discussions with Whitehall on how to keep fees down on Merseyside.
While the previous level of cap came in across England in January 2023, the Liverpool City Region had introduced a £2 cap earlier, with the reduced fares online in 2022. At that time, Mr Rotheram said the limit on fares was “putting money back into the pockets of our residents.”
The new reduced fare was agreed with bus operators in the Liverpool City Region for an initial three-year period. It is funded by the £12m Bus Services Improvement Plan (BSIP) allocation, secured by the Mayor and Combined Authority from the Conservative administration.
Bus travel is the most popular form of public transport in the Liverpool City Region, accounting for over 80 per cent of all journeys made every day. More than 1.6 million £2 tickets are bought every month.
Single bus fares across the Liverpool City Region are capped at £2
Heidi Alexander, Secretary of State for Transport, declined to say whether the cap would remain following the Chancellor’s forthcoming spending review. Speaking at an event in Derby last week, Ms Alexander revealed that only one in six trips are currently benefiting from the cap.
The Prime Minister announced last October that the current cap would remain in place until the end of 2025. The Government said the £150million was being spent on the measure – part of a £1billion investment in improving bus services.
Ms Alexander’s predecessor, Louise Haigh, previously hinted that it could be targeted at younger people and rural areas from 2026.
Transport Secretary Heidi Alexander walking along Downing Street(Image: PA Wire)
A spokesperson for the Liverpool City Region Combined Authority said: “The £2 bus fare cap has played an important role in helping people across our region with the cost of living, while encouraging more people to use public transport. We’re currently in discussions with government and local operators about bus funding and remain committed to making travel as affordable, accessible and reliable as possible.
“With plans now in place to bring our buses back under public control through franchising, we’re working to build a better, more passenger-focused network for the future.”