Preston Bus says it cannot confirm whether it will join a new government scheme capping single fares at £2 from January because it has not been told how operators will be reimbursed. Preston Bus charges £3.50 for a standard adult single after leaving the national cap in January.
Under the current national scheme, participating operators cap eligible single fares at £3, but participation is voluntary. Preston Bus left the scheme in January and now charges £3.50 for a standard adult single.
The government said the new scheme will run throughout 2027 and is backed by £400m, but its announcement does not set out payments for individual operators.
Preston Bus welcomed the announcement and recognised its potential to help passengers with the cost of living.
However, it said it had
not received any further detailsand believed fare-cap schemes
must be fully fundedfor operators.
The company said it would assess the plan when the reimbursement arrangements were available. No decision on whether it will participate has been announced.
The new Burnham government said going back to a £2 cap would particularly help passengers in rural areas where single fares can be higher.
In February, after Preston Bus left the £3 scheme, the Department for Transport said:
It's up to bus operators if they want to participate…but we're providing over £150m a year for the scheme so bus fares can stay low, helping passengers get from A to B.
That statement and the £150m figure concerned the existing £3 scheme and pre-dated the new £2 announcement.
Preston Bus also withdrew off-peak journeys on several routes from Lancashire's £1 evening, Sunday and bank holiday fare scheme in April.
It said reimbursement provided in 2025 had not continued at the same level in 2026, while operating costs had risen.
Why has Preston Bus not agreed yet?
Preston Bus says it has not been told how it will be reimbursed under the £2 scheme, so it cannot yet decide whether to join. The operator says fare-cap schemes must be fully funded before it can assess the plan properly.
What did the government say about the new cap?
The government said the new scheme will run throughout 2027 and has £400m behind it, but it has not set out payments for individual operators. The Burnham government said a return to a £2 cap would particularly help passengers in rural areas where single fares can be higher.
What happened after Preston Bus left the £3 scheme?
Preston Bus left the existing national £3 cap in January and now charges £3.50 for a standard adult single. In February, after its withdrawal, the Department for Transport said:
It's up to bus operators if they want to participate…but we're providing over £150m a year for the scheme so bus fares can stay low, helping passengers get from A to B.
That statement and the £150m figure related to the existing £3 scheme and came before the new £2 announcement.
What else has Preston Bus changed this year?
Preston Bus also withdrew off-peak journeys on several routes from Lancashire's £1 evening, Sunday and bank holiday fare scheme in April. The company said reimbursement provided in 2025 had not continued at the same level in 2026, while operating costs had risen.
Key Facts
- Preston Bus charges £3.50 for a standard adult single after leaving the national cap in January.
- The new government scheme would cap single fares at £2 from January and run throughout 2027.
- The scheme is backed by £400m, but reimbursement details for operators have not been set out.
- Preston Bus says it will assess the plan once reimbursement arrangements are available.
- In April, it withdrew off-peak journeys from Lancashire's £1 evening, Sunday and bank holiday fare scheme.
