London | After promising to lead a "cost-of-living government", British Prime Minister Andy Burnham on Wednesday unveiled a cap of 2 pounds on single bus fares which he hopes will make travel cheaper for millions.

During his first week in office at 10 Downing Street, Burnham said buses are a lifeline for communities, providing essential routes into work, training and education as well as childcare, healthcare and leisure. Without the fare cap, single bus tickets could soar above 10 pounds in some of the country's most expensive routes.

"Good, affordable transport links are an essential; no one should be priced out of those and left behind," said Burnham.

"But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I've done it before and I will do it again now: a 2-pound cap on bus fares for millions across the country. Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living," he said.

"As I said on my first day in office (on Monday) – I will build a country for everyone, everywhere. That means more connected communities, better access to opportunities, and a lighter load on people’s lives," he added.

Backed by 400 million pounds of extra state funding, the government said the cap on fares outside of London is expected to help people across the UK access affordable bus travel more easily, breaking down barriers to travel for people struggling with the cost of living, opening up opportunities and boosting local economies.

"This action to ease the cost of living is funded by savings made elsewhere, so there's no burden to British taxpayers, just pounds going back into their pockets," said UK Chancellor John Healey.

In London, the cost of a single bus fare stands at 1.75 pounds, with multiple rides permitted within an hour as part of a "Hopper fare" applicable in the UK capital.

For other passengers, the cheaper fares from January 1, 2027, will be applicable for the rest of the year with maximum fares slashed by a third.

Under the previous Keir Starmer led Labour government, fares had been capped at 3 pounds until the end of March 2027. The new government's move is designed to stop prices jumping next year and also give local authorities more time to plan for next year.

"This is about making those everyday journeys easier and cheaper. We're cutting fares by a third to help with the cost of living, open up opportunities and keep people connected to work, school, healthcare and their friends and family," said UK Transport Secretary Heidi Alexander.

The cap is expected to particularly help passengers in rural and coastal areas to save money, where single fares can be higher while communities have been left behind by insufficient transport links.

The latest announcement is among Burnham's first set of actions, following his decision to slash taxes to lower household electricity bills earlier this week.