MPs and green groups slam Burnham over decision to fund bus fare cap with climate aid
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.
In short
- Government to fund £2 bus fare cap using climate aid budget, sparking backlash
- £400m to come from switching climate finance from grants to loans
- Critics say move risks worsening debt crises in poorer nations
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Domestic cost-of-living support for struggling British households is a legitimate priority that government must address. The UK remains committed to the 0.3% GNI aid target, so overall aid levels are maintained. Converting grants to loans allows capital to circulate more flexibly to support climate infrastructure rather than being limited to grants; loans need not be burdensome if structured well. Public transport subsidies also advance climate goals through emissions reductions.
The case against
Climate finance to developing nations is a committed international obligation and moral duty, particularly given Britain's historical emissions and current wealth. The world's poorest nations suffer disproportionately from climate change despite contributing least to it. Converting grants to loans increases debt burdens in already vulnerable economies facing debt crises, undermining their development prospects. This move damages Britain's credibility on climate leadership at a moment when global commitment is essential and follows an earlier reduction in aid from £2.3bn to £2bn annually.
Explained simply
Andy Burnham’s government plans to cap bus fares at £2, reversing a rise to £3 introduced in 2024 under Keir Starmer and Rachel Reeves. The £500m policy is intended to help with travel costs, and its funding is due to come from several government budgets.
About £400m would come from changing some international climate finance from grants to loans. Grants do not have to be repaid, while loans do; countries such as Malawi and Zambia are among those cited by critics as already facing debt pressures.
Green groups and opposition MPs say the change could add to those pressures and weaken the UK’s role in supporting poorer countries. The government says it will maintain its aid spending commitment and that loans give it more flexible ways to address climate change.
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