The £2 cap on bus fares has been extended by three months after warnings hundreds of services could be cut when it ends.
The Department for Transport announced the extension to support bus travel in England.
The cap was supposed to end on March 31, but has been extended to June 30.
Bus operators are struggling to maintain service levels amid rising costs and ridership not recovering to pre-pandemic levels.
The cap was introduced partly as a cost-of-living measure, but is also intended to encourage people to get back on buses.
“Putting more people on reliable and affordable buses will strengthen communities and help the economy grow,” Prime Minister Rishi Sunak said.
Up to 15% of services could have been scrapped, the passenger transport association, which represents bus companies, said earlier this month.
During the pandemic, the government provided £2billion to support bus companies, which provide England’s most popular form of public transport.
The Government said it would fund the extension of bus fares with up to £75million.
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