The £3 cap on single bus fares could be targeted at younger people and rural areas from 2026, Louise Haigh has suggested.
The Transport Secretary hinted that rather than extending the overall cap once more the government will explore other options in the coming year. Last month it was confirmed at the Budget the cap would be extended - costing £150million.
But it was announced the cap will also go up from £2 to £3 at the start of next year through the end of December 2025. Fares less than £3 will only rise by inflation.
Ms Haigh told Sky News's Trevor Phillips: "The plans we inherited would have ended the cap completely on December 31. We've stepped in with funding to protect (the cap) at £3 until the 31st of December next year, and in that period, we'll look to establish more targeted approaches."
Be the first with news from Mirror Politics
US ELECTION WHATSAPP: Join our US Election WhatsApp group here to be first to get all the biggest news and results as America heads to the polls. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
POLITICS WHATSAPP: Be first to get the biggest bombshells and breaking news by joining our Politics WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
NEWSLETTER: Or sign up here to the Mirror's Politics newsletter for all the best exclusives and opinions straight to your inbox.
PODCAST: And listen to our exciting new political podcast The Division Bell, hosted by Mirror interim political editor Lizzy Buchan and Express political editor Sam Lister, every Thursday.
"We've, through evaluation of the £2 cap, found that the best approach is to target it at young people.
"So we want to look at ways in order to ensure more targeted ways, just like we do with the concessionary fare for older people, we think we can develop more targeted ways that will better encourage people onto buses."
Pressed on whether there will not be a single cap after December 2025 but subsidies will be targeted at certain groups of people, she replied: "That's what we're considering at the moment.
"As we go through this year, as we have that time, whilst the £3 cap is in place, because the evaluation that we had showed it hadn't represented good value for money, the previous cap."
It came as the Transport Secretary also revealed where £1 billion in funding will go to deliver London-style buses nationwide as part of a massive Budget boost. She confirmed £712 million in funding for local authorities to improve services, alongside a further £243 million for bus operators.
Areas receiving an "unprecedented" amount of funding include Peterborough, the Isle of Wight, Torbay, Cambridgeshire, Leicester and Torbay.
Speaking on Sunday, she said: "If you live in a lot of small towns or villages, you've not got a bus before 9am or after 5pm and that's what stops people catching the bus."