On September 3, we unveiled plans to spend up to £60 million to restrict the cost of a single bus ticket in England outside of London at £2. This will go into effect no later than January 1, 2023, and last for three months, or until March 2023.
This major investment will save millions of people in England money on transport expenses at a time when many are trying to keep up with growing living expenses.
This investment also demonstrates our sustained dedication to achieving the ambitious goals for bus services outlined in “Bus Back Better,” the government’s national bus plan, notably our desire to reduce the cost of bus services.
The government’s track record of making the biggest investment in bus services in a generation, in England outside of London, continues with the adoption of the £2 bus ticket ceiling.
Since the Mayor of London has delegated control of transportation, including fee fixing, this rate limit will not apply to bus services in London.
To safeguard the long-term future of London’s transportation system, including bus services, this statement follows the agreement with Transport for London on a £1.2 billion multi-year settlement, which I know will satisfy colleagues around the Parliament.
In addition to helping passengers by lowering bus tickets, we have also kept investing in bus services in response to the COVID-19 pandemic’s unprecedented effects, which would now be endangering the delivery of services at a time when the general public needs bus services more than ever.
We have lessened the effects of the pandemic on bus networks with the roughly £2 billion allocated so far via the COVID-19 bus service assistance award, the bus recovery grant, and most recently the local transport fund.
This meant that during the epidemic, buses were maintained operating so that people who needed to commute for work, school, or healthcare could access these essential services and support the operation of this nation.
This financing was initially scheduled to cease in April of 2022, as I informed this House in March, but it was evident at the time that the sector was still dealing with serious financial difficulties as it attempted to recover from the epidemic.
To give bus services the greatest amount of time to recover, we stated that we would grant an additional £150 million and prolong recovery funds for the sector until October.
We were aware that this would be the last batch of recovery funds when we announced this grant.
We acknowledge that further government assistance is required to avoid severe cutbacks to bus services for the millions of people who rely on them every day, however, since the industry continues to confront considerable obstacles and many people are under pressure as a result of the growing cost of living.
To continue assisting bus services in England outside of London, we announced on August 19 a six-month extension to the Bus Recovery Grant, worth up to £130 million.
Starting in October 2022 and lasting for six months until the conclusion of the fiscal year in March 2023.
These funds will guarantee that these essential services will continue to be available to individuals who depend on them for living, working, and transportation in the near term and provide the industry and passengers assurance.
These two more bus service initiatives in England show our dedication to assisting bus services.
As we implement the national bus plan and achieve our goal of providing excellent bus services to everyone, everywhere, we will continue to collaborate closely with the industry.