The cap, which applies to more than 130 bus operators outside of London, will then rise in November to £2.50 for 12 months, before prices are reviewed.

The current limit on fares has now been extended twice after warnings hundreds of services could be cut without it.

Its aim is to ease the cost of living pressures on passengers but also to encourage people to use buses.

Bus operators have still not seen the same number of passengers return to using services as before the Covid pandemic, with levels recovering to around 85 to 90%, according to the Department for Transport.

The Confederation of Passenger Transport, which is the trade association for the UK's bus and coach sector, welcomed the extra funding for the scheme and said it would help operators and councils to "promote and grow services with greater confidence".

But Graham Vidler, chief executive of the body, warned the funding and cap extension would "not save every service in every part of the country".

The trade association has repeatedly claimed that up to 15% of services could be scrapped without further funding for the sector. It has said if the government is "really serious" about levelling up, then ministers need to "back our buses for the long term".

Full article:

The BBC - Bus £2 fare cap extended to end of October