STOCKTON-ON-TEES – In a move designed to “unlock ambition” across the region, Tees Valley Mayor Ben Houchen has announced plans to extend the highly successful £1 bus fare cap for under-22s until at least March 2027.1
The announcement, made on January 5, 2026, follows a surge in public transport usage among young people. Since the initiative’s launch in June 2024, more than four million journeys have been recorded at the discounted rate, proving the scheme to be a cornerstone of regional connectivity for students, apprentices, and young professionals.2
The £1 Fare: A Data-Driven Success
Originally a cornerstone of the Mayor’s 2024 re-election campaign, the fare cap was designed to remove the financial barriers between young residents and regional opportunities.3 The extension aims to provide long-term certainty as the cost of living continues to impact household budgets.4+1
- Single Journey Cap: Fixed at £1 for all passengers aged 21 and under.5
- Unlimited Day Travel: A companion £3 day ticket remains in place, allowing unlimited travel across multiple bus operators within the Tees Valley.6
- Geographic Reach: The offer applies to the vast majority of journeys starting in Teesside, Darlington, and Hartlepool, including those crossing regional borders.7
Funding the Future: The LABG Boost
The sustainability of the fare cap has been bolstered by a significant update in central government support.8 The Local Authority Bus Grant (LABG) has been increased by £1.1 million annually for the Tees Valley, with funding now secured until 2029.9
This revenue stream allows the Tees Valley Combined Authority (TVCA) to maintain low fares while simultaneously investing in broader network improvements.
| Funding Stream | Duration | Impact |
| Local Authority Bus Grant | 2026–2029 | £1.1m annual uplift for service maintenance. |
| Bus Service Improvement Plan | Ongoing | Funding for fare caps and infrastructure. |
| Regional Investment Fund | Discretionary | Supports “Next Generation” transport projects. |
The Road Ahead: Cabinet Approval in March
While the Mayor’s pledge provides a clear roadmap, the formal extension of the £1 and £3 fare caps is subject to Cabinet approval in March 2026.10 Mayor Houchen has called on local authority leaders across Teesside, Darlington, and Hartlepool to back the proposal, describing it as a “no-brainer” for the region’s economic health.11+1
“Access to jobs and education is unbelievably vital,” Houchen stated. “I’m determined to make sure travel costs don’t hold our young people back. When I make a pledge, I keep it.”
Wider Transport Shifts
The focus on fixed-route fare caps comes at a transitional time for regional transport. Following a cabinet vote in December 2025, the on-demand Tees Flex service is scheduled to cease operations in March 2026.12 Resources from that program are expected to be redirected into more reliable, fixed hourly services, further integrating with the heavily utilized £1 fare scheme.
STOCKTON-ON-TEES Buses Picture from Picryl
