UK Prime Minister Andy Burnham cuts bus fares to ease cost-of-living pressures

Burnham launches first cost-of-living measures

British Prime Minister Andy Burnham has announced that single bus fares across England outside London will be capped at £2 beginning in January.

The new limit lowers the current maximum fare of £3, reducing ticket prices by up to one-third and forming part of the government's broader strategy to ease financial pressure on households.

The announcement is among the first economic measures introduced by Burnham since taking office.

An early signal after years of political instability

Burnham is seeking to demonstrate that his government can quickly deliver practical improvements to people's daily lives.

The United Kingdom has experienced seven prime ministers over the past decade while living standards have remained largely stagnant.

According to the prime minister, these initial policies are intended to give families more financial breathing space and rebuild confidence in government.

Lower energy bills followed by cheaper transport

The transport announcement follows another measure unveiled earlier this week.

From October 1, the government will remove a tax from domestic electricity bills, saving the average household around £45 per year.

Together, the two initiatives are designed to reduce essential household expenses by targeting both energy and transport costs.

The £500 million cost of the fare cap

The British government estimates that the bus fare cap will cost more than £500 million.

Around £100 million will come from the existing transport budget, while approximately £400 million will be financed through the Department for Energy Security and Net Zero by converting some international climate grants into loans.

The fare cap will apply only outside London, which operates under a separate regulated transport system.

Fiscal limits constrain broader tax cuts

Despite the early measures, Burnham faces significant budget constraints.

According to the BBC, the prime minister has postponed plans to raise the tax-free personal income allowance, a policy that would cost several billion pounds.

Burnham has said the issue will be reviewed during the next national budget while maintaining his commitment to fiscal discipline.

Burnham: "A country for everyone"

Announcing the policy, Burnham said his government wants to create better-connected communities and reduce everyday financial pressures.

He argued that affordable public transport expands opportunities, strengthens local economies and improves quality of life for millions of people across Britain.

The new measures represent the first major test of Burnham's promise to deliver rapid and tangible improvements for households.