A fare increase could hit low-income families in the pocket with some commuters facing an extra £40 a month on their bills.

Labour has confirmed the single bus fare cap in England will increase from the current £2 to £3 in the Budget tomorrow (October 30).

The increased cap will be in place until the end of 2025, affecting most bus journeys in England.

Adam French, personal finance expert and senior editor at NerdWallet, said the change could have a major impact on those who rely on public transport to get to work or to travel to use local services.

He said: “While keeping the cap in place will prevent fares from skyrocketing, it will still present a challenge for people who are struggling to make ends meet amidst the ongoing cost-of-living crisis.

“Those who use the bus to commute to and from work five days a week, for example, may need to find an extra £40 per month to cover the increased costs.”

He said students, young people and those on lower incomes will be “most affected” by the change as they often rely on public transport to get around.

Fiona Peake, personal finance expert at Ocean Finance, also warned the fare increase will affect many people who regularly use the bus to go to work, to school or to access other essential facilities.

She said: “With rising living costs, the last thing we want is for transport to become another burden on household budgets.

“Every penny matters, and for someone who relies on buses daily, even a small fare increase can lead to tough choices when budgeting.”

Ms Peake warned people may be put off using public transport as their costs increase which could have other adverse impacts.

She warned: “If bus fares go up, people might consider other forms of transport (namely driving) which could then lead to congestion and environmental concerns. We want to encourage the use of public transport, not deter it.

“There’s also the question of service quality. When fares increase, it’s natural for passengers to expect better services, whether that means more frequent buses, cleaner vehicles, or better routes.

“If people are paying more, they’ll want to see that their money is being reinvested into the service. If not, it could lead to frustration and disappointment, further discouraging people from using public transport.”

In England, you can get a bus pass for free travel when you reach state pension age, which is currently 66.

People in Scotland and Wales can get a bus pass to travel for free once they reach the age of 60.