The Department for Transport said the £60m scheme could save passengers more than £3 on a single ticket. The department said the average fare for a three-mile journey was around £2.80, meaning passengers would save 30% on the price each time they travelled. The change will take effect from January 2023. Transport Secretary Grant Shapps said: “Buses are by far the most used form of public transport, so ensuring that almost all bus journeys do not cost more than £2 will help passengers in the winter months and provide immediate help to thousands of households across the country. “This £60m boost will mean everyone can afford work, education, shops and doctors appointments. “We know people will feel the pressure of rising costs this winter so we are working hard this summer to provide practical concrete help that will reduce everyday costs.” The government will work with operators and local authorities to introduce the system. The Department for Transport said bus operators representing 90% of the market had expressed their support for the scheme. Paul Tuohy, chief executive of the Campaign for Better Transport, said: “This will be very welcome news for the millions of people who rely on the bus to get to work, shops, medical appointments and to connect with friends and family. “Buses have great potential to reduce traffic and carbon emissions, connect communities and alleviate loneliness. This £2 cap on fares – which we have called for – will help put buses on the road to a bright future.” Severe cuts to bus services in England were averted last month thanks to new government funding after it was announced that £130m would be made available to keep services running. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Alison Edwards, policy director at the Confederation of Passenger Transport, called it an “impressive initiative” and said she looked forward to “understanding in detail how the proposed fare cap will work in practice to ensure it supports the long-term viability of bus networks”. Labour’s shadow transport secretary, Louise Hay, said the plan was not enough. “The government’s 90-day temporary suspension after years of rising fares does not match the scale of the crisis. Passengers facing a cost-of-living crisis need more than short-term half-measures,” he said.