Most bus fares in England will be capped at £2 from January, Prime Minister Andy Burnham has announced.Currently, the nationwide cap on single bus fares is set at £3 until the end of March 2027. However, some areas – including London and Greater Manchester, where Mr Burnham set a £2 limit as mayor – have lower top rates for single tickets.“Good, affordable transport links are an essential. No one should be priced out of those and left behind,” Mr Burnham said.“But for too long people have said that cheaper transport isn’t an option. I don’t accept that. I’ve done it before and I will do it again now: a £2 cap on bus fares for millions across the country.“Lower fares will help people get to where they need to – giving them breathing space to help with the cost of living.”The measure is backed by £454 million of funding – including money to allow devolved governments to take similar action.Andy Burnham says: ’Good, affordable transport links are an essential’ (PA)Some £400 million of that funding will come from switching investment in international climate finance to loans, with the rest from savings in the Department for Energy Security and Net Zero budget.The total cost of the scheme is expected to be more than £500 million, with the rest coming from Department for Transport funding already allocated to buses.On Tuesday, Mr Burnham told ministers he will lead a “cost-of-living Government” after announcing an £850 million tax cut on electricity bills.From October 1, electricity bills will be VAT-free, saving households about £45 a year as part of the new Prime Minister’s promise to help ease cost-of-living pressures.But Darren Jones, a key ally of former prime minister Sir Keir Starmer who lost his Cabinet post on Monday when Mr Burnham took office, said the policy was “unfunded”.Mr Burnham used the first meeting of his Cabinet to say that ministers must give people “a sense that help is coming”.He vowed to always “show how we’re going to pay” for policies to help hard-pressed people.More follows on this breaking news story. Subscribe here to get the latest updates from The Independent