The government has announced a £151 million investment to extend the national bus fare cap and are raising it to £3 until the end of 2025.

This is an increase on the previous limit of £2 under the Conservative government and is in place to prevent significant bus fare price hikes across the country.

Without this intervention, some passengers could face dramatic fare increases when the current cap expires at the end of 2024, with the Leeds to Scarborough route potentially soaring by £13.

Transport Secretary Louise Haigh emphasised the importance of affordable transport and said: "Buses are the engines of economic opportunity across the country.

“We know that reliable, affordable bus services are vital to keeping Britain moving.

“That's why the government will cap fares at £3 for an additional year."

“This will avoid a cliff-edge at the end of this year and keep fares affordable across the country – improving access to opportunities, particularly in towns and rural areas, while offering value for the taxpayer.”

The scheme means no single bus fare on participating routes will exceed £3, while routes currently charging less than £3 will only be permitted inflation-linked increases.

Local authorities and Metro Mayors retain the ability to fund their own fare reduction schemes, as currently seen in London, West Yorkshire and Manchester.

Some routes will see substantial savings under the extended cap.

Passengers travelling from Newcastle to Middlesbrough will save £5 on the normal £8 fare, while those going from Hull to York will save £5.50 on the usual £8.50 ticket.

The Leeds to Scarborough route offers the highest saving, with passengers paying £12 less than the normal £15 fare.

Following the announcement the Confederation of Passenger Transport (CPT) empathised they are pleased that the government has taken steps to implement a managed exit from the £2 fare cap, but also highlighted that the increase will still present challenges for some passengers.

Graham Vidler, Chief Executive of CPT, said: “The move to a £3 fare cap for one year reflects the government’s intent to gradually transition fare policy, but it must be backed by a consistent funding strategy.

“Without this support, we risk seeing essential services, especially in rural and underserved areas, become unsustainable over time.

“Affordable travel should not come at the cost-of-service viability.”