People on low incomes are bracing for a potential blow to their finances as the Budget reveals plans for a bus fare hike. The move could see some commuters shelling out an additional £40 a month on travel expenses.

Labour has confirmed that England’s single bus fare cap will jump from the current £2 to £3 in the forthcoming Budget set for October 30. The raised cap is expected to stay in place until the end of 2025, affecting a vast number of bus journeys throughout England.

Weighing in on the matter, Adam French, personal finance expert and senior editor at NerdWallet, said: “While keeping the cap in place will prevent fares from skyrocketing, it will still present a challenge for people who are struggling to make ends meet amidst the ongoing cost-of-living crisis.

“Those who use the bus to commute to and from work five days a week, for example, may need to find an extra £40 per month to cover the increased costs.” Mr French pointed out that students, young people, and those on lower incomes would be “most affected” by the fare rise, as they often rely on buses for their daily travels.

Echoing these concerns, Fiona Peake, personal finance expert at Ocean Finance, also expressed worry over how the fare increase might impact individuals who depend on bus services for work, education, or accessing vital services, reports Lancs Live.

She warned: “With rising living costs, the last thing we want is for transport to become another burden on household budgets. Every penny matters, and for someone who relies on buses daily, even a small fare increase can lead to tough choices when budgeting.”

She said the change may push people to abandon public transport. She said: “If bus fares go up, people might consider other forms of transport (namely driving) which could then lead to congestion and environmental concerns.

“We want to encourage the use of public transport, not deter it.” She added: “There’s also the question of service quality. When fares increase, it’s natural for passengers to expect better services, whether that means more frequent buses, cleaner vehicles, or better routes.”

Ms Peake said any increases in fares should be accompanied by noticeable upgrades in service. She said: “If people are paying more, they’ll want to see that their money is being reinvested into the service. If not, it could lead to frustration and disappointment, further discouraging people from using public transport.”

For people living in England, eligibility for a free bus pass comes with reaching the state pension age of 66. Individuals in Scotland and Wales can access free travel with a bus pass starting at the age of 60.