The new Hopper fare, launched by Mayor Sadiq Khan, allows customers to make two journeys for the price of one within an hour. 

Passengers are now able to change on to another bus or tram for free within one hour of touching in at the start of their journey.

It will be automatically given to anyone who uses pay as you go with Oyster or contactless payment cards.

Using the Hopper fare, passengers can make extended journeys across London for just £1.50 for a standard adult fare if the second journey begins within an hour. This means around 30 million bus journeys a year that previously cost £1.50 will now be free.

This also applies to passengers switching from bus to tram, tram to bus or tram to tram within an hour.

Mayor Sadiq Khan said: 'Fares in London have risen for eight years in a row - and for people who have to change buses to get to work, the old system simply wasn't fair.

'We must ensure that everyone can afford to travel around our city, and for people on low incomes, the cost of travel must never become a barrier to work or study.'

Transport Commissioner Mike Brown said: 'I'm delighted we have been able to deliver this key commitment to London by the Mayor swiftly, enabling us to better meet the needs of those Londoners who live or work in areas that aren't as well served by Tube or rail services.'

TfL is now working on providing unlimited bus and tram transfers within one hour, which is not currently possible owing to limits with the existing technology. It is hoped that this will be in place by 2018.

Passengers who travel on a Tube or train between their two or more bus or tram journeys will also be eligible for the Hopper fare from 2018.