Mother and child on a bus

Chancellor moves to ease the cost of living for families

Families across England will benefit from free bus travel for children this summer, as the Chancellor steps up efforts to ease cost‑of‑living pressures and support household budgets during the school holidays.

Under the new initiative, every child aged five to 15 will be able to travel for free on participating local bus services throughout August. The scheme offers unlimited journeys, requires no registration and comes at no cost to families.

The policy forms part of the government’s new Great British Summer Savings programme, backed by more than £100 million of funding. Alongside free fares, the package includes continued financial support for bus operators facing higher costs, recognising the essential role local transport plays for schoolchildren, pensioners and rural communities.

Prime Minister Keir Starmer said:

“We know many hard working families are still feeling the squeeze and too often think they have to hold back.

“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier.

“This government is focused on practical steps that help right now – easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”

Summer cost of living QUOTE

Supporting households amid global pressures

The announcement comes as the government intensifies action to shield households and businesses from rising costs. Ministers say the measures build on recent interventions to cut energy bills, protect motorists and tackle unfair profiteering.

This month, the government has delivered an average £117 reduction in energy bills, increased the minimum wage and frozen rail fares and prescription charges, following decisions taken at the Autumn Budget.

With the war in Iran adding pressure to global prices, the government has also introduced a tax cut for hauliers to help keep supply chains moving, extended the 5p fuel duty freeze, and provided emergency relief for rural households facing sharp increases in heating oil costs.

Economic data released this week showed the UK outperforming forecasts again. The country was the fastest‑growing economy in the G7 at the start of the year, the IMF upgraded its UK growth forecast for 2026, and inflation has fallen faster than expected.

Chancellor of the Exchequer Rachel Reeves also commented:

“My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August.

“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

Free bus travel will run from 1 to 31 August and apply to participating local bus services across England. The government estimates a family with two children making a weekly return journey at a £1.50 child fare could save £27 over the month.

The national rollout follows a successful pilot scheme run last summer by the Mayor for the West of England, Helen Godwin.

Wider action on food prices

Alongside transport measures, the government is launching a business engagement exercise aimed at further reducing pressure on food prices. Plans include suspending tariffs on more than 100 agri‑food products, such as biscuits, chocolate, dried fruit and nuts.

The expected benefit to consumers is more than £150 million a year, with the full list of products due to be published next week. Ministers say the approach safeguards domestic production and food security, excluding any significant UK primary agricultural products.

These steps build on earlier agri‑food tariff suspensions announced in April, estimated to deliver between £100 million and £400 million in annual consumer benefits.

 

Image credit: iStock

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