UK New PM Andy Burnham Announces £2 Bus Fare Cap to Help with Cost of Living

Britain's new Prime Minister Andy Burnham has announced plans to cap the price of single bus tickets at £2 from January, aiming to reduce travel costs and help families facing the ongoing cost-of-living crisis.

The government said the measure could reduce the cost of some bus journeys by up to one-third. To fund the policy, £454 million will be redirected from the budget of the Department for Energy Security and Net Zero, according to Downing Street.

In a statement, Burnham said his government is committed to building "a country for everyone, everywhere" by improving transport links, increasing access to opportunities, and reducing everyday financial pressures on households.

The announcement comes just one day after the government revealed another cost-of-living measure, confirming that Value Added Tax (VAT) will be removed from domestic electricity bills from 1 October. The change is expected to save the average household around £45 a year, based on an average annual electricity bill of approximately £1,862.

Burnham has indicated that more policies aimed at delivering immediate financial relief will be introduced in the coming weeks. Speaking earlier this week, he said his priority is to introduce measures that people will notice quickly, particularly those on lower incomes who are most affected by rising living costs.