MD3517 July 2026 fare changes

1.1.    Under this Mayor, bus and tram fares have been frozen for the third year in a row (in total, under this Mayor, for a seventh time). In Mayoral Decision (MD) 3464, the Mayor approved a freeze on TfL bus and tram fares until 5 July 2026. It is proposed to extend that fares freeze until 04:30 on 1 November 2026, after which TfL bus and tram fares will increase by 5.7 per cent overall. 

1.2.    Bus and tram fares will remain frozen until 1 November 2026, meaning that bus fares will remain more affordable for longer to help support Londoners on the lowest incomes with the cost of living. This represents an eight-month delay to the increase that would otherwise have been implemented in March 2026, when other modes’ fares were increased by an average of 6 per cent overall. 

1.3.    If this decision is approved, it would mean that bus and tram fares will remain only 35p higher than in 2016; and 17 per cent lower than if they had risen in line with inflation throughout this period.

1.4.    MD3464 and its accompanying Direction contained some minor administrative errors. These meant that a small number of TfL tube and rail fares were not set at the intended price. This paper identifies where this happened; and asks the Mayor to approve, with effect from 5 July 2026, the fares that were originally intended to be presented to the Mayor for approval in MD3464, and its accompanying Direction.

1.5.    No customers have been overcharged; and the corrections do not change the overall average increase on tube and rail PAYG fares, under the Mayor’s control, of 6 per cent (as approved in MD3464). This decision and its accompanying Direction therefore continues to adhere to that overall tube and rail PAYG fares increase. 

1.6.    The Mayor is asked to approve the proposed revisions to fares set out in this decision, corrected in line with the below, to be implemented from 5 July 2026. Bus and tram fares would remain frozen from that date until 04:30 on 1 November 2026, after which they would increase.

Bus and tram fares

1.7.    The bus and tram fares freeze, currently due to end on 5 July 2026, will be frozen again until 04:30 on 1 November 2026; and then increased by 5.7 per cent overall (see table 1.1).

1.8.    In November, the adult pay-as-you-go (PAYG) single bus/tram fare will increase by 10p to £1.85. The daily bus and tram cap will increase to £5.55 – equal to the price of three single fares. The 7 Day Bus & Tram Pass will increase to £26.10.

1.9.    The half-adult and child bus and tram fares will remain frozen until 1 November 2026; after this, they will increase to 90p, in line with the adult fare change.

1.10.    The Hopper fare will continue to permit unlimited free transfers within an hour of a first-paid-for bus or tram PAYG journey. 

Table 1.1: Bus and tram fares in 2026

Administrative errors to be corrected

1.11.    Table 1.2, below, sets out the administrative errors contained in MD3464 and its accompanying Direction. It also identifies the fares that the Mayor is now asked to approve; and that are incorporated in the new Direction to TfL, that the Mayor is asked to approve as part of this decision.

Table 1.2: Administrative errors for adult PAYG fares for TfL tube and rail network journeys contained in Schedule A to the Direction issued under MD3464, with correction identified for incorporation in new Direction

1.12.    It was intended that, in MD3464, the Mayor should be asked to approve the above three fares being charged at £2.50. However, due to an administrative error, the Mayor was asked to approve them at a price of £2.40. Customers have been charged £2.40 since 1 March; and so have not been overcharged. As the fares were set lower than intended, it resulted certain longer journeys being charged at a lower amount than a shorter journey. The Mayor is now asked to approve a 10p increase in these fares; this reflects the originally intended price. All other fares for TfL tube and rail network journeys approved in MD3464 and its accompanying Direction will remain the same. 

2.1.    The Mayor is under a statutory duty to develop and implement policies to promote and encourage safe, integrated, efficient and economic transport facilities and services to, from and within Greater London. It is proposed the Mayor continues to freeze all TfL bus and tram fares until 1 November 2026; and then increase them by 5.7 per cent.

2.2.    This enables TfL to deliver other priorities that underpin its Business Plan, and that support the delivery of the Mayor’s Transport Strategy.  
 

3.1.    Under section 149 of the Equality Act 2010 (the 2010 Act), as public authorities, the Mayor and TfL are subject to the public sector equality duty and must have ‘due regard’ to the need to:

•    eliminate unlawful discrimination, harassment, victimisation and any other conduct that is prohibited by or under the 2010 Act
•    advance equality of opportunity, and foster good relations, between people who share a relevant protected characteristic and those who do not. 

3.2.    Relevant protected characteristics under section 149 of the 2010 Act are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

3.3.    The duty above applies to the Mayor’s duty to direct TfL as to the general level and structure of fares under the Greater London Authority Act 1999 (the GLA Act).

3.4.    TfL has identified seven groups of Londoners (highlighted below) who typically face barriers to public transport use. The cost of fares is a key issue for these groups. Below is an assessment of the potential impact of this decision on those groups.

3.5.    Londoners with protected characteristics are likely to be affected by increases in fares. Statistically they are more likely to be on low incomes. Data also shows that 27 per cent of Londoners live in poverty.  Londoners on the lowest incomes would need to spend 24 per cent more per week to achieve the same standard of living that they had before the pandemic. 

3.6.    Black, Asian and Minority Ethnic Londoners are more likely to: live in low-income households; cite affordability as a barrier to transport; and use buses rather than the Tube.  The freezing of bus and tram fares until 1 November should reduce barriers to travel for Black, Asian and Minority Ethnic Londoners, as it will provide a real-terms reduction in fares. The proposed increase of bus and tram fares in November will likely have a negative impact on those using or reliant on those services.

3.7.    Women are more likely to be primary carers at home; so are less likely to be in full-time employment, and more frequently cite affordability as a barrier to transport. Women are also more likely to use buses than the Tube.  19.4 per cent of women living in London are in low-paid work, compared to 15 per cent of men. This means that cost-of-living pressures can be more acute for female workers.  The freezing of bus and tram fares until November should reduce barriers to travel for women, as it will provide a real-terms reduction in fares. The proposed increase of bus and tram fares in November will likely have a negative impact on those using or reliant on those services.

3.8.    Older Londoners are more likely to be retired, and many live on low incomes. The 60+ concession, and the Older Persons’ Freedom Pass, currently permit older Londoners to travel free at all times, except between 4.30am and 9am, Monday to Friday. This concession will remain unchanged by this fares revision. For those who need to travel before 9am on weekdays, the freezing of bus and tram fares until November should reduce barriers to travel, as it will provide a real-terms reduction in fares. The proposed increase of bus and tram fares in November will likely have a negative impact on those using or reliant on those services.

3.9.    Disabled Londoners are more likely to live in low-income households. One in three families in London with a disabled child live in poverty.  One of the reasons for this is the higher costs of supporting a disabled child. In some cases, it can be three times more expensive to bring up a child with an impairment.  Carers are also likely to experience financial hardships as a knock-on effect of the need to take lower-paid and part-time work. For carers who need to travel using bus or trams, the freezing of bus and tram fares until November should reduce barriers to travel, as it will provide a real-terms reduction in fares. The proposed increase of bus and tram fares in November could have a negative impact on those groups using or reliant on those services.

3.10.    Younger Londoners are more likely to be from a Black, Asian or Minority Ethnic community, and are more likely to experience the financial barriers discussed above.  Children and young people in London have the highest poverty rates compared with working-age adults and pensioners.  Among children aged 10-14, 39 per cent are in poverty; for older teens, aged 15-19, this figure rises to 41 per cent. For holders of the 16+ Zip Card concession – which allows free or discounted travel – the freezing of bus and tram fares until November should reduce barriers to travel, as it will provide a real-terms reduction in fares. However, this group will likely be negatively impacted by the proposed increased of bus and tram fares in November.

3.11.    Londoners on low incomes tend to be women; older people; those from a Black, Asian or Minority Ethnic background; disabled people; and those not in work. A low income largely reflects working status, though the underlying causes may be tied to the cost of housing, childcare and transport; and access to education, qualifications and health. Low-income workers are more likely to work in sectors where weekend working is routine – such as the hospitality sector, where nearly half of jobs are low pay.  Among children living in poverty, more of them are part of low-income working families than of workless families.  London has the highest poverty rates in the UK across all age groups.  Londoners on low incomes will benefit from freezing bus any tram fares until November, as it will provide real-term reductions in fares; but could be negatively impacted by the proposed increase to bus and tram fares in November.

3.12.    LGBTQ+ Londoners have reported hate crime as their major concern in relation to transport. The proposed fare change would have no specific implications for LGBTQ+ Londoners, except where they also have any of the other protected characteristics set out above.

3.13.    The Mayor is required to consider the potential equalities impacts discussed above, and any mitigations in place, at the time of making this MD. 

3.14.    Some people in the groups identified above are likely to benefit from free travel concessions or discounted fares related to age, disability status, or receipt of income-related benefits. Concessionary fare schemes are being maintained to keep public transport accessible to people who face barriers to public transport use. Communication campaigns and activity to improve the application processes will improve people’s awareness of and access to discounts.

3.15.    The proposals will not have an adverse impact on TfL’s ability to run and invest in transport services. All existing TfL concessions and discounts remain in place to support those who have protected characteristics, or are from low-income households, when travelling in London. The proposals have been prepared with due regard for the public sector equality duty. 
 

Links to Mayoral strategies and priorities

4.1.    These proposals will contribute to a more effective, accessible and affordable public transport network. Extending the bus and tram fares freeze from 5 July to 1 November 2026 will help to keep transport costs down; and ensure that fares remain as low as possible, for as long as economic conditions allow. The proposed 10p increase to bus and tram fares, from 1 November 2026, will continue to provide good value for money for customers.

4.2.    The Mayor’s Transport Strategy highlights the importance of improving transport accessibility for all Londoners. Part of this is ensuring that the costs of transport remain affordable. These fare proposals will promote the use of London’s public transport facilities and services, by balancing the need to maintain quality services, through ongoing investment, with providing affordable bus travel and limiting the scale of increase as much as possible. All existing TfL concessions and discounts remain in place to support those travelling in London who are most likely to: have lower incomes and protected characteristics; or come from low-income households. 

Consultations and impact assessments

4.3.    The Mayor is not required to undertake a consultation in relation to the fare proposals in this decision.

Conflicts of interest

4.4.    GLA officers involved in the drafting or clearing of this decision will be affected by any change in fares policy when travelling on public transport, in the same way as anyone travelling on London’s transport services. There are no other interests to declare. 
 

5.1.    There are no direct financial implications to the GLA arising from this decision.

5.2.    The proposal (subject to the Mayor’s approval) is to increase fares on buses and trams on 1 November 2026 by 5.7 per cent overall.

5.3.    Table 5.1 below summarises the revenue yields for TfL based on 2026-27 forecasted demand as of December 2025. It assumes the net impact of bus and tram fares being frozen until 1 November 2026, and then increasing by 5.7 per cent; and, since March 2026, other PAYG fares increasing overall by an average of 6 per cent, and all Travelcards and caps being frozen. In addition to these changes, TfL’s 2026-27 GLA Budget submission assumes increases to income from continued growth in passenger journeys. The changes to fares have been applied to the 2026-27 forecasted demand and the values represent the potential revenue generation from the fares increase.

Table 5.1: Revenue yields from 1 March 2026 (£m per annum) on 2026-27 forecasted demand

6.1.    The Mayor may issue general directions, under section 155(1)(b) of the GLA Act, as to the manner in which TfL is to exercise its functions; and specific directions, under section 155(1)(c), as to the exercise of TfL’s functions. Under section 174(1) of the GLA Act, the Mayor is under a duty to exercise his powers under section 155(1), so as to ensure that the general level and structure of fares for public passenger transport services (provided by TfL or other persons who provide services under agreement with TfL) are determined.

6.2.    Under section 149 of the 2010 Act, due regard must be had, when the Mayor exercises a function such as the making of this decision, to the equality obligations referred to in section 3 of this report. Consideration is given in this section to the likely effects of the fare proposals on protected groups, and the Mayor must have regard to these matters when making this decision.

6.3.    The Mayor is not required to conduct a consultation in relation to the fare proposals. 
 

7.1.    The project will be delivered according to the following timetable: