Purpose

The current capped fares (Mayor’s Fares) scheme is due to expire on 30 August 2026. The Scheme is being delivered as part of the enhanced partnership with Bus operators.

As part of the scheme terms and conditions, bus operators require legal notification of any extension to the scheme as well as any changes to the scheme including fares prices. Any changes from 31 August 2026 will require a decision by 5 July 2026 to meet the statutory 56-day notice period.

The Combined Authority agreed to the following at the meeting on 4 Dec 2025:

• Approved the Mayor’s Fares Scheme extension until 31 March 2026, with agreement for a further extension until 31 March 2027 following confirmation of Department for Transport funding settlement for 2026/27.

• Delegated the final decision on changes to pricing and the extension to 31 March 2027 of the Mayor’s Fares Scheme to the Chief Executive in consultation with the Mayor and Chair of Transport Committee following confirmation of Department for Transport funding settlement for 2026/27.

To ensure scheme continuity and to allow further work to take place to establish a final decision on fares as part of wider work ahead of bus franchising from May 2027, an extension of the scheme beyond 30 August 2026 is therefore necessary.

Decision

Amendments to the Mayor’s Fare scheme has a wider strategic context and therefore has not been considered in isolation. Additional considerations include:
• DfT policy and the National Bus Fare Cap
• The emerging Weaver Network Fares, Ticketing and Retail Strategy
• The establishment of a bus fare offer under franchising and the affordability of this
• The ongoing need for commercial fares subsidy
• The likely impact on other fares and operator response

An options appraisal assessment has been developed outlining considerations including a range of fare increases as well as termination of the scheme. These options were presented to the CA’s Franchising and Transport Board (inc. the CEO) and the Mayor in June 2026.

A decision has been taken by the Mayor and CEO on 3 July 2026 to approve the Mayor’s Fares Scheme extension until 31 March 2027 only.

Alternative options considered

Option 1 -
Option 2 -
Option 3 -