Green groups and opposition MPs have criticised the government's plan to fund a new £500m policy capping bus fares at £2 by diverting money from the climate aid budget. The policy, unveiled by Andy Burnham's government and reversing a fare cap rise to £3 introduced by Keir Starmer and Rachel Reeves in 2024, is presented as a flagship cost-of-living measure, but critics argue it comes at the expense of some of the world's poorest countries.

Around £400m of the cost will be met by switching international climate finance from grants to loans, with the remainder drawn from savings at the Department for Energy Security and Net Zero and around £50m from the Department for Transport. Figures including Power Shift Africa's Mohamed Adow, Liberal Democrat MP Monica Harding, Green MP Ellie Chowns, Debt Justice's Heidi Chow and Bond's Romily Greenhill warned the move risks deepening debt crises in nations such as Malawi and Zambia and undermines Britain's global standing, particularly as it follows earlier cuts to climate aid from £2.3bn to £2bn a year. A government spokesperson defended the switch, saying the UK remains committed to spending 0.3% of gross national income on aid and that moving a small share from grants to loans offers "more flexible ways to tackle the climate crisis" while making better use of taxpayers' money.