Bus journeys in England will be capped at £2 for three months amid concerns about the cost of living crisis.
The Department for Transport said the £60m plan could save passengers more than £3 for a single ticket.
The department said the average fare for a three-mile journey was about £2.80, meaning that passengers would save 30% of the price every time they travelled.
The change will come into effect from January 2023.
The transport secretary, Grant Shapps, said: “Buses are by far and away the most-used form of public transport, so ensuring that almost all bus journeys are no more than £2 will assist passengers over the winter months and provide direct help to thousands of households across the country.
“This £60m boost will mean everyone can affordably get to work, education, the shops and doctors’ appointments.
“We know people will be feeling the pressure of rising costs this winter, and so we have been working hard this summer to provide practical concrete help that will lower daily expenditure.”
The government will work with operators and local authorities to introduce the scheme. The Department for Transport said bus operators representing 90% of the market had expressed support for the scheme.
Paul Tuohy, the chief executive of 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, to the shops, to medical appointments, and to connect with friends and family.
“Buses have great potential to cut traffic and carbon emissions, to connect communities and ease loneliness. This £2 fare cap – which we have called for – will help set buses on the road to a bright future.”
Severe cuts to bus services in England were avoided last month due to new government funding, after it was announced £130m would be made available to keep services running.
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Alison Edwards, the policy director at the Confederation of Passenger Transport, called it an “eye-catching initiative” and said she was looking forward “to understanding in detail how the proposed fare cap will work in practice to ensure it supports the long-term sustainability of bus networks”.
Labour’s shadow transport secretary, Louise Haigh, said the scheme was not enough.
“The government’s temporary 90-day reprieve after years of soaring fares fails to match the scale of the crisis. Passengers facing a cost of living crisis need more than short-term half measures,” she said.
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