London Mayor Pledges £20M Bus Fare Innovation Fund to Boost Ridership

London Mayor Sir Sadiq Khan has announced an additional £20M investment aimed at encouraging more people to use the capital’s buses, as part of the newly approved City Hall budget.

Transport for London (TfL) will use the funding to trial “fares innovation”, which could include reduced fares at certain times and even making some new services free when they are first introduced.

The move follows a decline in bus passenger numbers last year — the first drop since the pandemic — from 1.869 billion journeys to 1.842 billion. London TravelWatch has linked falling ridership to slower bus speeds across the capital.

Speaking to the London Assembly Budget and Performance Committee, Sir Sadiq said innovation would require investment but was essential to boosting demand.

“We will be tasking TfL to look into ways we can encourage more people to use, in particular, buses,” he said. “We’re a city with a remarkable public transport system which is getting better all the time.”

He added that outer London boroughs, where buses serve as a “lifeline”, would be a particular focus.

Assembly Member Elly Baker welcomed the funding, describing buses as vital for those “who don’t have any options”, including older residents, disabled people and lower-income Londoners.

Bus use in London has declined steadily from a peak of 2.4 billion journeys in 2014. Average bus speeds have also fallen, from 10.27mph four years ago to 9.17mph in 2024-25. According to London TravelWatch, every 10% drop in speed can reduce demand by 6%.

The investment forms part of an additional £142.6M identified between the draft and final budgets due to higher-than-expected business rates and council tax returns. The mayor’s wider budget includes £1.26BN for policing and a £250M boost each for TfL and the London Fire Brigade.

Sir Sadiq is aiming for 80% of journeys in London to be made by walking, cycling or public transport by 2041.