North East’s bus fare cap set to come into effect

A new bus fare cap will come into effect across the North East from January 1, reducing travel costs for passengers and keeping fares lower than the national rate.

The £2.50 single fare cap, agreed by North East mayor Kim McGuinness and the North East Combined Authority cabinet in December, is subsidised by the region’s Bus Service Improvement Plan (BSIP) funding. The cap, 50p cheaper than the national £3 rate, will remain in place until at least December 2025.

Many passengers will also benefit from even lower fares, as some operators charge between £1.90 and £2.50 for shorter journeys. These measures ensure that bus travel across the region stays affordable, with most fares remaining below the national cap.

In addition to the £2.50 cap, the mayor has pledged to extend the £1 fare for passengers aged 21 and under, a scheme that applies to bus, Metro and Ferry services. 

The initiative, announced during the region’s first Child Poverty Summit in November, aims to run throughout 2025, with ambitions to extend it further until 2028.

Mayor McGuinness said: “People tell me every day how much they rely on the bus and how much they have benefitted from the national fare cap.

“I want to support local people and continue to keep transport costs as low as possible, which is why I have stepped in to launch a new local bus cap which is at least 50p cheaper than the national rate.  

“It’s important we do all we can to improve our buses and a big part of that is improving access for all by providing good value fares.  

“This new cap is in addition to our popular £1 fare for young people which has seen millions of bus journeys this year alone and I have committed to keep this in place in 2025. 

“We also launched Kids Go Free region-wide in 2024, supporting families with free travel for kids under 11 during the school holidays.”

The mayor has also reaffirmed her long-term vision of taking the bus network back under public control, with plans for a Franchising Scheme Assessment already underway to explore potential future improvements.

Mayor McGuinness added: “There is of course so much more to do, and I have bold plans for our buses, but this is a step in the right direction.” 

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